Aghajan Scrap Enterprises Pvt. Ltd. Vs Union of India

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NC: 2025:KHC:13076 WP No. 12816 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27^TH DAY OF MARCH, 2025

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BEFORE

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THE HON'BLE MR JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 12816 OF 2024 (GM-RES)

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BETWEEN:

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AGHAJAN SCRAP ENTERPRISES PVT. LTD., OFFICE AT NO.3154/8, ARCH GATE, GOLANDAS STREET, LASHKAR MOHALLA, MYSURU – 570 001. REPRESENTED BY ITS MANAGING DIRECTOR, BI BI HAZIRA TAJBASSUM.

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…PETITIONER

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(BY SRI MOHAMMED TAHIR, ADVOCATE)

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AND:

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Digitally signed by NAGAVENI Location: High Court of Karnataka

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UNION OF INDIA REPRESENTED BY ITS GENERAL MANAGER, SOUTHERN RAILWAYS VOC ROAD, CHENNAI – 600 003.

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PRINCIPAL CHIEF MATERIAL MANAGER GENERAL STORES DEPARTMENT SOUTHERN RAILWAYS PERAMBUR CHENNAI – 600 023.

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NC: 2025:KHC:13076 WP No. 12816 of 2024

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DEPUTY CHIEF MATERIAL MANAGER GENERAL STORES DEPARTMENT, SOUTHERN RAILWAYS PERAMBUR, CHENNAI-600 023.

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…RESPONDENTS

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(BY SRI H.SHANTHI BHUSHAN, DSGI FOR R-1;

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R-2 AND R-3 ARE SERVED)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED FOR FORFEITURE ORDER BEARING NO. 04/DEPOT SALES DATED 01/02/2024 ISSUED BY THE R3, AT ANNEXUREH AND ALSO ISSUE A WRIT OF MANDAMUS OR ANY OTHER APPROPRIATE WRIT TO DIRECT R2 AND 3 TO PAY / REIMBURSE THE EMD AMOUNT I.E. RS. 3,51,975/- VIDE E PAYMENT REF NO. CI10553208/21/12/2023 AND BALANCE SALE VALUE (BSV) (PART) RS. 15,54,690/- VIDE E PAYMENT REF NO. CK000EJWG6/24/01/2024 ALONG WITH SUFFICIENT DAMAGES AND INTEREST 17.1 PERCENT PA AS PER CHARGED BY THE RESPONDENT.

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THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE M.NAGAPRASANNA

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ORAL ORDER

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The petitioner is before this Court calling in question the order of forfeiture dated 01-02-2024 passed by the 3^rd respondent and seeking for reimbursement of the EMD amount and the balance sale value paid by the petitioner.

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NC: 2025:KHC:13076 WP No. 12816 of 2024

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Heard learned counsel Sri Mohammed Tahir, appearing for petitioner and Sri H Shanthi Bhushan, learned Deputy Solicitor General of India appearing for respondent No.1.

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The facts in brief are as follows:

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The 2^nd respondent/Railways held a e-auction auctioning

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metal scrap of 97.5 metric tonnes totally valuing Rs.3,51,97,050. The petitioner-Company is said to have participated in the said e-auction by depositing earnest money of Rs.3,51,975/-. The EMD was deposited on 21-12-2023, but the first challan was issued on 31-12-2023, which ought to have been issued on the date of auction i.e. on 21-12-2023. Later, a communication comes about on 23-01-2024 to pay the money on or before 24-01-2024. The petitioner is said to have deposited a part payment on 24-01-2024, against which, a part sale release order was issued for 35.8 metric tonnes of metal scrap. On the same day i.e., on 24-01-2024, the petitioner submits a representation seeking extension of time. The extension of time representation submitted by the petitioner reads as follows:

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4 - NC: 2025:KHC:13076 WP No. 12816 of 2024

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“ Date: 24/01/2024

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Ref:

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To , Dy. CMM GSD DEPOT PERAMBUR

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Sub : Request for Extension of Time Period for Payment of remaining Quantity of 61.7 MT.

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Respected Sir/Madam,

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We Aghajan Scrap Enterprises Pvt. Ltd. Mysore, have paid amount of Rs. 15, 54, 690/- (Transaction No: - CKOOOEJWG6 & IREPS Ref No:- NB942521202209), we Request you to grant Permission for generating challan for remaining 61.7 MT & Extend the time period for lifting of 61.7 MT due to transportation strike in Karnataka and All Over India Please do the needful.”

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No order is passed upon this. On 01-02-2024, it transpires that

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the EMD is forfeited and the part payment that is to be paid to the petitioner is stalled. Therefore, the petitioner is before this Court in the subject petition.

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The learned counsel for the petitioner submits that

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today the goods are not there, what the respondents should be directed to do is return of the EMD and release of the part payment made by the petitioner.

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The learned Deputy Solicitor General of India would submit that the grievances of the petitioner through the

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NC: 2025:KHC:13076 WP No. 12816 of 2024

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representation would be considered in accordance with law and necessary orders would be passed within 3 weeks.

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In the light of the said submission, I deem it appropriate to dispose the petition, with a direction to the respondents to consider the representation of the petitioner, bearing in mind the observations made in the course of the order, as also, the contents of the representation and for the reason for which it is rendered.

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Ordered accordingly.

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Sd/(M.NAGAPRASANNA)

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JUDGE

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BKP

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List No.: 1 Sl No.: 91

Aghajan Scrap Enterprises Pvt. Ltd. v. Union of India

Case brief

What is this about?

What did the court decide?

Aghajan Scrap Enterprises Pvt. Ltd. v. Union of India

Case brief

What is this about?

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