P. V. TRADERS Vs. UNION OF INDIA

JUDGEMENT

(1.) M /S P. V. Traders have filed the instant appeal under Clause 12 of the Letters Patent against judgment and order dated 28.09.2012 rendered by the learned Single Judge of this Court, rejecting its prayer for quashing order dated 15.02.2012 passed by the General Officer Commanding in Chief, Northern Command ( for short G.O.C '). FACTS:

(2.) IN pursuance of the tendering process initiated by respondents the appellant-petitioner emerged successful and consequently was loaded with the Supply Order of 25 Snow Mobiles on 10.09.2010. The appellant-petitioner in turn placed the order for supply of Snow Mobile on a firm based in USA. In terms of the Supply Order the Snow Mobiles were required to be delivered within 130 days i.e. on or before 23.01.2011. The respondents had reserved the right to unilaterally cancel the Supply Order in case of late delivery. According to the terms and conditions of the Supply Order, if the machines were not delivered within the stipulated period then the respondents were entitled to unilaterally cancel the Supply Order and the extension of the delivery period was to be at the sole discretion of the respondents. It has remained undisputed that the appellant-petitioner did not adhere to the time schedule and failed to supply the Snow Mobiles within the stipulated period. On 19.01.2011 the appellant-petitioner addressed a communication to the respondents that on account of disruption in power supply in the month of December and because of severe snow storms the production in the Factory was disrupted which could be resumed only few days before the date of communication. A request for extension of 60 days was made. Similar communication seeking further time was addressed on 05.05.2011 with a prayer to extend the delivery period up to 20.09.2011. An assurance was held out that 10 Snow Mobiles would be arriving in India by 30th July, 2011 and the balance 11 Mobiles would be supplied on or before 15.09.2011.

(3.) THE total 21 number of Snow Mobiles were delivered at 17 Engineering Det at Chandigarh on 07.10.2011 and information was communicated to Head Quarter Northern Command- respondent no.3 on 08.10.2011. The GOCrespondent no.2 cancelled the Supply Order on 15.02.2012 which postulated supply of 21 Snow Mobiles at the cost of Rs. 8,15,000.00 per unit and a total cost of Rs. 1,71,15,000.00 excluding the tax payable on transaction. The ground of cancellation is that the appellant-petitioner had failed to make the supply within the stipulated period prescribed in paragraph 3, Part II of the Supply Order and the appellant-petitioner was asked to return the Custom Duty Exemption Certificate dated 08.08.2011, 19.08.2011 and 29.10.2011. Feeling aggrieved the appellant-petitioner approached this Court challenging the order dated 15.02.2012 which has cancelled the Supply Order dated 10.09.2010.