K. & CO. Vs. STATE OF HIMACHAL PRADESH

JUDGEMENT

(1.) This judgment shall dispose of the petition filed under Section 34 of the Arbitration and Conciliation Act, 1996, for setting aside the award dated 3.1.2004 passed by Arbitrator Hon'ble Mr. Justice Roop Singh Thakur (Retd.), rejecting the claim of the applicant/claimant for refund of the earnest money of Rs. 40 Lakhs.

(2.) Briefly stated, the facts of the case are that the Respondent issued a short term tendon notice, dated 17.7.1999, inviting bads for appointment of agent/d0istributor for the sale of tickets of Himachal Pradesh State Lotteries (2 digit and/or 3 digit). The said tender notice was puplished in leading English newspapers on 15th and 16th July, 1999. The Petitioner is a company engaged in the business of organising/distributing government, lotteries since the year 1979. The salient features of the said tender were as under:

(3.) According to Clause 8 of the render document, if the snort-listed bidder does not turn up for signing the agreement within the time limit prescribed by the Director, his earnest money was to be forfeited and the bid of the next bidder was to be accepted after conducting negotiations, if necessary. It was alleged that the power of forfeiting of the earnest money was available viz. a viz. successful short-listed first bidder. In the event of successful bidder not turning up, the Respondents were to enter into negotiations with the next bidder, if necessary. It was alleged that, however, this clause does not at all contemplate that the earnest money of the second bidder with whom negotiations will be entered into can also be forfeited.