STEELCO STEELCO Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard learned counsel for the petitioners, for the Union and for the Respondent Railway.

(2.) The present writ petition has been filed for a direction to the Respondent Railway to refund the petitioner 's deposit of Rs. 2,84,000.00 with interest which has been deposited towards "Advertising Rights ", and for quashing the letter dated 02.09.2010 issued by the Divisional Commercial Manager, East Central Railway by which the refund of the amount in question has been held to be wrong, unjustified and not tenable.

(3.) The short facts of the case are that the petitioner no. 1 is the proprietary concern of the petitioner no. 2, and is engaged in the business of advertisement and other business. It participated in a tender issued by the respondents in the year 2001 for the work of display of advertisement in Gaya Railway Station through advertising rights. The petitioner 's tender was accepted and after negotiation the petitioner was directed to make payment of Rs. 2,84,000.00 for the first year namely 2001-02, in pursuance of which the petitioner deposited a sum of Rs. 2,76,000.00 through bank draft over and above Rs. 8,000.00 earlier deposited by way of earnest money to be adjusted, in all aggregating to Rs. 2,84,000.00. The petitioner was required in terms of the tender to make payment of Security Deposit, but the same was not paid as the petitioner sought exemption from such payment. It appears that even though the petitioner was made to sign an agreement on 28.12.2001 (Annexure-12) the same was not executed by the Respondents and thus no concluded contract as such was brought into existence by the parties. The respondents thereafter made demand for payment of Rs. 3,12,400.00 for the second year, namely 2002-03, in respect of the advertising rights. The petitioner having not been able to avail the advertisement rights, demanded refund of the amount of Rs. 2,84,000.00 which had been paid for the first year namely, 2001-02 to the respondents.