PAWAN TRADING COMPANY Vs. LIEUTENANT GOVERNOR

JUDGEMENT

(1.) This writ application is filed by the Petitioner for a direction upon the Respondents to act in accordance with the terms and conditions specified in the agreement dated May 22, 2008, executed by and between the Petitioner No. 1 and the Administration of U.T. of Andaman and Nicobar Islands.

(2.) A notice inviting tender dated March 25, 2008 was issued by the Respondent No. 4 inviting tenders from suppliers having three years experience in the business/trade for supply of ration articles from April 2008 to December 2008 to Temporary Tsunami Shelters in South Andaman Sub-Division (shelters of South Andaman and Little Andaman). The Petitioner-company participated in the above tender process. The Petitioner-company was selected by the Respondent authority and an agreement dated May 22, 2008 was executed by and between the Petitioner-company and the Administration of UT of A&N Islands (hereinafter referred to as the said agreement). Clauses 4, 5 and 6 of the said agreement prescribed consequences of delay in delivery of ration articles. After completion of supply of ration articles, the Petitioner-company raised bills for supply of those articles. A show cause notice dated January 29, 2010 was issued against the Petitioner company for violation of Clause 5 of the said agreement. The Petitioner-company submitted a reply to the Respondent No. 4 on February 01, 2010. Thereafter, a fine of Rs. 36,73,906/- was imposed upon the Petitioner-company by virtue of order No. 151 dated February 03. 2010 passed by the Respondent No. 3.

(3.) At the very outset, a preliminary objection with regard to maintainability of this writ application is raised on behalf of the Respondents. According to the Respondents imposition of fine arising out of a non statutory contract having no public law element in it is under challenge in this writ application.