SHARDA CONSTRUCTION Vs. EAST CENTRAL RAILWAY (CONSTRUCTION ORGANISATION)

JUDGEMENT

(1.) THIS Letters Patent Appeal under Clause 10 of the Letters Patent of the Patna High Court Rules, is directed against the order of the learned Single Judge dated 19.10.2005, passed in C.W.J.C. No. 5629 of 2004.

(2.) THE only short question, which has emerged for consideration and adjudication, is as to whether direction of the learned Single Judge with regard to refund with interest at the rate of 6 per cent, of the amount of Rs. 50,000.00 as earnest money deposited by the respondent company -original writ petitioner, is justified or not?

(3.) A tender came to be floated in connection with construction of a Broad -gauge railway line from Koderma to Ranchi. The respondent -original writ petitioner submitted his tender for allotment of the said work on 4.7.2002. The respondent received the letter of acceptance on 28.7.2003. Thereafter respondent was served with seven days notice in accordance with clause 62 of General Condition of Contract (G.C.C.) and ultimately he was served with a termination letter dated 3.4.2004, in terms of clause 62 of the G.C.C. This is the reason why the writ petition came to be filed for quashing of the impugned order of termination and refund of the earnest money.