Writ petition seeking quashing of order forfeiting 50% EMD. Court held respondents' power to forfeit under CPWD Works Manual applies only to withdrawals or modifications, not defective tenders rejected at threshold. Writ allowed and EMD to be refunded.
Impugned order forfeiting 50% EMD set aside; respondents directed to refund the EMD forthwith.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 06.04.2022
CORAM:
THE HONOURABLE MR.JUSTICE V.BHARATHIDASAN
W.P.No.22500 of 2018 and W.M.P.No.26359 of 2018
M/s.Anandha Construction Corporation, Rep. by its Partner Dev Anand, Plot No.74A, Jasraj Nagar, Pudupakkam, Kanniamman Koil Street (via), Chennai - 603 103.
.. Petitioner Vs.
Prayer: Writ Petition has been filed under Article 226 of the Constitution of India seeking a Writ of Certiorarified Mandamus calling for the records relating to proceedings No.2(24)/201617/WKS, dated 29.5.2017 of the 4th respondent and quash the same and consequentially directing the respondents to return the 50% EMD to the petitioner.
For Petitioner : Mr.P.Ravi Shankar Rao For Respondents : Mr.T.Ravikumar Standing Counsel
O R D E R
This writ petition has been filed challenging the impugned order of forfeiture of 50% EMD deposited by the petitioner.
"19.8 Forfeiture of earnest money
(1) If any tenderer withdraws his tender before the expiry of the validity period, or before the issue of letter of acceptance, whichever is earlier, or makes any modification in the terms and conditions of the tender which are not acceptable to the department, then the Government shall, without prejudice to any other right or remedy, be at liberty to forfeit 50% of the earnest money absolutely. This provision would naturally apply only to the lowest tenderer once the earnest money of all the
tenderers except those of the lowest is refunded as per provisions under para 19.5 (1).
(2) If contractor fails to furnish the prescribed performance guarantee within the prescribed period, the earnest money is absolutely forfeited to the President automatically without any notice. (Modified as per OM/MAN/164)
(3) In case of forfeiture of earnest money as prescribed in 1 and 2 above, the tenderer shall not be allowed to participate in the re-tendering process of the work."
Sd/Assistant Registrar(CS IX)
//True Copy//
Sub Assistant Registrar
kk
To
Chennai - 600 020. 3. Executive Engineer (Civil) Central Leather Research Institute, Sardar Patel Road, Adayar,
Chennai - 600 020.
+1cc to Mr.T.Ravikumar, Advocate, S.R.No.23782
+1cc to Mr.V.Gangatharan, Advocate, S.R.No.23578 [09/06/2022]
W.P.No.22500 of 2018 and W.M.P.No.26359 of 2018
SKM(CO) GN(24/05/2022)
2 issues framed by the court
Whether the respondents had power to forfeit 50% of the EMD when the tender was rejected as defective rather than withdrawn by the tenderer.
Whether Section 19.8 of the CPWD Works Manual, 2014 applies to forfeiture in cases where a tender is rejected for being defective at the threshold.
M/s. Anandha Construction Corporation
The Director, Central Leather Research Institute
Senior Controller of Administration, Central Leather Research Institute
Executive Engineer (Civil), Central Leather Research Institute
Section Officer (Works), Central Leather Research Institute
V. Bharathidasan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
