RAM LAL AGARWALLA Vs. CENTRAL COALFIELDS LIMITED

JUDGEMENT

(1.) The present writ petition has been filed for quashing the letter under Ref. No. PO/TTK/Ramlal Agarwalla/NIT-11/Cancellation of contract/2020-21/1278 dtd. 11/9/2020 (Annexure-49 to the writ petition) issued under the signature of the Project Officer/Engineer-incharge, Tetariakhar OCP, Rajhara Area- respondent no.6, whereby the management of the respondent-Central Coalfields Limited has taken decision to take penal actions against the petitioner, namely, (i) Termination/cancellation of contract awarded to the petitioner in terms of Clause 9(a) of the GTC; (ii) Forfeiture of EMD of Rs.27.78 lakh in terms with Clause 6.1 of the GTC; (iii) debarring it from participating in future bids for a period of three years in terms with Clause 6.1 of the GTC; (iv) as per Clause 9.2(c), recovery is to be made from the petitioner to the extent of 20% of the contract value (20% of Rs.93,43,08,500.00) i.e. Rs.18,68,61,700.00 being higher than the performance security and additional performance security deposited by the petitioner; (v) recovery is to be done by encashment of B.G. amounting to Rs.1,95,52,050.00 submitted against performance security for Rs.93,43,100.00 and additional performance security for Rs.1,02,08,950.00; and (vi) balance amount i.e. Rs.16,73,09,650.00 (18,68,61,700-1,95,52,050) is to be recovered from any other contract of the petitioner-company or by institution of recovery suit in terms of Clause 9.2(c)(ii) of the GTC.

(2.) During pendency of the present writ petition, the petitioner prayed for grant of interim relief which was declined by this Court vide order dtd. 22/9/2020. Aggrieved thereby, the petitioner filed intra court appeal being L.P.A No. 298 of 2020 before learned Division Bench and the same was disposed of on 21/10/2020, observing as under:-

(3.) The factual background of the case as stated in the writ petition is that the respondent-CCL issued e-tender notice dtd. 24/5/2019 being NIT No.:CCL/GM(CMC)/Rajhara/2019/11 for hiring of HEMM for OB removal, extraction and transportation of coal at Tetariakhar OCP of Rajhara Area for a period of five years (hereinafter referred as 'the said work'). The petitioner submitted its bid document and was found L-1 and the General Manager (CMC) issued letter of acceptance vide letter no.520 dtd. 25/10/2019, specifying that the term of completion of the work would be 1825 days which would be deemed to have commenced on the expiry of 30 days from the date of issuance of letter of acceptance or one week from the date of handing over the site of work, whichever is later, however, preparatory works would be started from 10th day of issue of LoA. Thereafter, the respondent no.8 issued letter of award vide letter no.347 dtd. 7/11/2019 for the aforesaid work. In compliance of the aforesaid letters, the petitioner submitted performance security through bank guarantee dtd. 19/11/2019 for Rs.93,43,100.00 and the additional performance security through three bank guarantees, all dtd. 19/11/2019, for Rs.30,62,685.00, Rs.51,04,475.00 and Rs.20,41,790.00 respectively. The petitioner vide letter dtd. 15/12/2019 communicated the General Manager, Rajhara Area that the villagers were preventing it from working on the land and they were seeking compensation and, accordingly, a request was made by the petitioner that the land dispute should be resolved so that site be made available to it as soon as possible. The respondent no.6 vide letter No.2203 dtd. 24/12/2019 made notional handing over of the site along with site plan to the petitioner and requested it to start the work immediately. The respondent no.6 vide letter No.2231 dtd. 28/12/2019 requested the Officer In-charge, Balumath Police Station to deploy police force at the site for start of the work safely from 29/12/2019. Thereafter, the petitioner sent letter dtd. 1/1/2020 to the respondent no.6, stating that when it tried to mobilize the site on 15/12/2019 as well as on 29/12/2019, the villagers did not allow it to start the work. Subsequently, the petitioner repeatedly sent e-mail to the respondent authorities as well as Balumath police station to resolve the said dispute. A meeting was also called on 6/1/2020 by the CCL with the villagers, but no conclusion was reached in the said meeting. The respondent no.5 vide letter no.2417 dtd. 13/1/2020 requested the Deputy Commissioner, Latehar to look into the matter regarding obstruction made by the villagers in starting the said work and to help the petitioner so that the work could be started as early as possible.