RDS PROJECT LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition has been filed seeking reliefs pertaining to a bank guarantee dated 17 March, 2020. In fact, the primary relief which the petitioner has sought is for restraining the respondent authorities from invoking the concerned bank guarantees.

(2.) The disputes between the parties arise out of a contract for construction of a New Hangar AF Station at Carnicobar valued at approximately Rs.189 crores. In terms of Clause 43.1 of the special conditions of the tender, the petitioner had received an interest free advance of 10 per cent of the entire contract value towards mobilization advance in two instalments. Thereafter, in terms of the conditions of tender, the petitioner had furnished two separate bank guarantees on 17 March, 2020 for Rs.97,79,919/- respectively. The petitioner has sought to restrain the respondent authorities from invoking the concerned bank guarantees on the ground of spread of Coronavirus (Covid-19). It is in this background, that the petitioner had filed this petition wherein an order dated 27 November, 2020 was passed whereby the respondent authorities were restrained from invoking the bank guarantees.

(3.) At the outset, a point had been raised by the petitioner as to my determination in taking up this matter on the ground that I did not have the necessary determination. By an order dated 11 January, 2021, I had decided that I had determination and proceeded to fix the writ petition for "Hearing".