MAHESWARI ENTERPRISES Vs. MAHANADI COALFIELDS LIMITED

JUDGEMENT

(1.) BY this writ petition, the petitioner seeks to assail the validity of the decision of the Mahanadi Coalfields Limited communicated in letter dated 22.1.2002 at Annexure -1 debarring it from submitting any tender for a period of one year from 7.1.2002.

(2.) THE case of the petitioner briefly stated is that the Mahanadi Coalfields Limited (in brief 'M.C.L.') invited tenders for the work called 'Drivage of two inclines of Cross Section 5m x 3m and Length 410m for Natraj Project, Talcher Area; MCL'. Pursuant to the invitation, the petitioner submitted its tender which was accepted by the M.C.L. and letter of intent was placed with the petitioner on 16.10.2001. The M.C.L however, while placing the letter of intent imposed conditions beyond the scope of the tender and insisted the petitioner to execute the work which were not covered by the tender documents. The petitioner, accordingly, protested by insisting that the M.C.L. cannot travel beyond the scope of the work identified in the tender documents. The M.C.L. without heeding to the objection illegally terminated the contract and the earnest money deposited by the petitioner was forfeited. Besides taking the aforesaid illegal actions, the M.C.L. also debarred the petitioner from submitting any tender as communicated in the impugned letter dated 22.1.2002. The contention of the petitioner is that the impugned decision amounts to imposition of penalty having civil consequences and it could not have been done without giving an opportunity of hearing to it.

(3.) CANCELLATION of the contract and consequent forfeiture of earnest money deposited by the petitioner are different aspects from debarring it from submitting tender in M.C.L. At this stage it is relevant to quote the offending decision communicated to the petitioner in letter dated 22.1.2002 at Annexure -1 :