BHAGWAN YADAV, SON OF LATE DASRATH YADAV, RESIDENT OF MOHALLA DIXON ROAD MUNDICHAK, P.S. TILKAMANJHI, DISTRICT Vs. THE UNION OF INDIA THROUGH DIVISIONAL RAILWAY MANAGER, EASTERN RAILWAY, MALDA DISTRICT MALDA

JUDGEMENT

(1.) Heard Mr. Rajendra Narain, learned Senior Counsel appearing for the petitioner and Mr. Devendra Kumar Sinha, learned Senior Counsel appearing for the Railways assisted by Mr. Satyeshwar Prasad.

(2.) The petitioner is aggrieved by the order dated 21.4.2016 passed by the Senior Divisional Commercial Manager, Eastern Railway, Malda whereby the annual maintenance contract for maintenance of computer peripheral equipments (except networking equipments) at various locations within Malda Division have been terminated inter alia on grounds of failure of the petitioner to deposit the performance guarantee of Rs.88,080.00 within the period stipulated in the letter of acceptance dated 14.12.2015 which requires the petitioner to deposit the amount within a period of 30 days subject to extension of the period upto 60 days but which is to be accompanied with interest @ 15 per cent per annum.

(3.) It is not in dispute that the petitioner failed to carry out this obligation. It is also not in dispute that no agreement has been executed between the petitioner and the Railways. It is also admitted that performance guarantee was deposited by the petitioner on 29.2.2016 through term deposit receipt and which is beyond the period of 60 days and undisputedly does not accompany the interest @15% per annum, which the petitioner was required to deposit as per the letter of acceptance dated 14.12.2015. In these undisputed circumstances, it is the argument of Mr. Narain, learned Senior Counsel appearing for the petitioner in reference to certain work orders issued by the Assistant Station Manager, a copy of which is present in rejoinder to the counter affidavit, that the Railways having acted upon the contract they could not have retracted their steps to terminate the same.