ANIL KHIRWAL, CHAIBASA Vs. SOUTH EASTERN RAILWAY

JUDGEMENT

(1.) In this writ application the petitioner has prayed for issuance of a writ of mandamus commanding the respondents to refund the earnest money deposited by the petitioner by way of demand draft dated 05.08.2009 for lifting of 15062.31 M.T. iron ore lying at Juruli Railway Station, situated in the district of Keonjhar, Orissa.

(2.) The facts of the case are that in course of loading of iron ore in the Railway Wagon some amount of iron ore fell on the ground and stacked in between two railway lines. It is further stated that gradually, a huge quantity of iron ore accumulated at the loading site from the last 10 years at Juruli siding. The quantity of the aforesaid iron ore is about 15062.31 tones. With a view to remove the aforesaid iron ore from the railway line, it was decided by the Railway Administration to sell those iron ore through the public auction, as per Railway Commercial Manual, Volume-II read with Sec. 84 of the Railway Act, 1989. It appears that in view of the aforesaid decision, the respondents published an auction notice in daily news papers, namely, Prabhat Khabar and Dainik Jagaran dated 27.07.2009 vide notification no. Comml- 1/Accpt. BKG /Goods/RLI/L/No.4/09 dated 10.07.2009. It is stated that in response to the aforesaid advertisement, four bidders including the petitioner submitted their bids. The aforesaid bids were opened in presence of all the bidders on 06.08.2009. Thereafter, the petitioner's bid was found highest, hence his bid was accepted by the Tender Committee. Thereafter, as per the Auction Rule, petitioner had deposited 25% of the quoted value towards the Earnest Money i.e. Rs. 7,00,000.00 through bank draft and Rs. 17,51,391.00 through cheque. It then appears that the Railway Administration vide letter dated 25.11.2009 advised the petitioner to deposit Rs. 17,51,391.00 through demand draft. By the same letter the petitioner was further advised to deposit the balance amount of the quoted price within 10 days from the date of receipt of the letter, otherwise the deposited earnest money will be forfeited and the next higher bidder would be offered to take the material.

(3.) In reply to the aforesaid letter, petitioner requested the respondents on several occasions for arranging transit permit as per the Rule of Orissa Government for transportation of iron ore. Petitioner further stated that as and when transit permit will be arranged, he will deposit the aforesaid amount and remove the materials. However, it appears that the Railway Administration vide letter dated 25.11.2009 (Annexure-8) again requested the petitioner to deposit Rs. 17,51,391.00 towards the Earnest Money, because, the cheque submitted by the petitioner had been bounced. The petitioner was further requested to deposit the remaining bid amount of Rs. 73,54,173.00 within 10 days and lift the auctioned materials immediately, otherwise the deposited Earnest Money for the said auction will be forfeited and the next higher bidder will be offered to take the auctioned materials. It appears that again the petitioner reiterated his claim that the Railway Administration should arrange transit permit, then only the petitioner will deposit rest amount. It is also stated that since the bid of the petitioner was valid only for 30 days, therefore, petitioner claimed that the Earnest Money deposited be refunded to it. It then appears that thereafter, respondents vide letter dated 15.12.2009 informed the petitioner that since the petitioner has failed to deposit full amount of the Earnest Money as well as the bid amount of the above auction, the Earnest Money deposited by the petitioner, to the tune of Rs. 7,00,000.00, is forfeited. Against the aforesaid letter dated 15.12.2009 ( Annexure-11), the present writ application filed.