SHREE JI RESOURCES LLP Vs. UNION OF INDIA

JUDGEMENT

(1.) The present writ petition under Article 226 of the Constitution of India has been filed by the petitioner-firm assailing the order dtd. 14/10/2024 (Annexure-11) passed by the Senior Divisional Commercial Manager, Ratlam, Western Railway, whereby Contract Agreement No. CA 11 RTM Wagon Cleaning-1 dtd. 29/9/2023, awarded to the petitioner-firm, was terminated and the security deposit amounting to Rs.5,05,000.00 furnished by the petitioner-firm was forfeited.

(2.) Briefly stated, the facts giving rise to the present writ petition are that the petitioner-firm is a Limited Liability Partnership firm duly registered under the GST Act and holding a Permanent Account Number. The respondent authorities issued an advertisement dtd. 9/4/2023 inviting bids for cleaning of all types of goods trains and disposal/sale of raw material. The petitioner-firm, being eligible, participated in the bidding process and was awarded the contract through an e-auction held on 29/9/2023. Consequently, a contract agreement was executed on 30/9/2023 for a period of three years, commencing from 4/11/2023 to 3/11/2026, for cleaning of wagons and disposal of material in the specified area.

(3.) It is the case of the petitioner-firm that during execution of the contract, a communication dtd. 12/12/2023 was issued by the respondents alleging certain irregularities in the cleaning of BOX-N wagons, and a penalty of Rs.2,02,000.00 was imposed. The petitioner-firm submitted a reply dtd. 18/12/2023 (Annexure-6) denying the allegations and explaining the practical difficulties in cleaning such wagons, inter alia, stating that the wagons were filled with clinker and, due to communication gaps, certain wagons remained unclean. Despite the said reply, the respondents reiterated the demand for penalty vide communication dtd. 19/12/2023 (Annexure-7).