{"id":209361,"date":"2011-08-25T00:00:00","date_gmt":"2011-08-24T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-niranjan-industries-vs-the-tamil-nadu-electricity-board-on-25-august-2011"},"modified":"2016-11-14T13:32:50","modified_gmt":"2016-11-14T08:02:50","slug":"ms-niranjan-industries-vs-the-tamil-nadu-electricity-board-on-25-august-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-niranjan-industries-vs-the-tamil-nadu-electricity-board-on-25-august-2011","title":{"rendered":"M\/S. Niranjan Industries vs The Tamil Nadu Electricity Board on 25 August, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Madras High Court<\/div>\n<div class=\"doc_title\">M\/S. Niranjan Industries vs The Tamil Nadu Electricity Board on 25 August, 2011<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT\n\nDated: 25\/08\/2011\n\nCoram\nTHE HONOURABLE  MR. JUSTICE VINOD K. SHARMA\n\nWrit Petition (MD) No.6185 of 2008\n\nM\/s. Niranjan Industries,\nRepresented by its Proprietor,\nS. Venkatesan,\nSon of Subramania Pillai,\n(Aged about 57 years),\nDoor No.27,\nLakshmipuram Third Street,\nMadurai - 625 001.    \t\t\t\t...... Petitioner\n\nVs\n\n1. The Tamil Nadu Electricity Board,\n     represented by its Chairman,\n     Chennai - 600 001.\n\n2. The Chief Engineer \/ Distribution,\n     The Tamil Nadu Electricity Board,\n     Trichy Region, Thennur, Trichy - 17.\n\n3. The Superintending Engineer,\n     The Tamil Nadu Electricity Board,\n     Thanjavur Electricity Distribution Circle,\n     Thanjavur.  \t\t\t\t...... Respondents\n\n\t\tWrit Petition filed under Article 226 of the Constitution of India\npraying for issuance of a Writ of Certiorarified Mandamus to call for the\nrecords  relating to the letter of the second respondent dated 28.06.2007 in\nLr.No.CE \/ D \/ TRY \/ RSO \/ Specn.No.57\/06-07\/D.467 \/ 2007 and quash the same and\nconsequentially directing the respondents 2 and 3 to refund the Earnest Money\nDeposit of Rs.36,400\/- (Rupees Thirty Six Thousand and Four Hundred only) for\nLot No.4 to the petitioner.\n\n!For Petitioner\t... Mr.  J. Barathan\n^For Respondents...  No appearance\n- - - - - - - -\n:ORDER\n<\/pre>\n<p>\t\tThe petitioner has approached this Court, with a prayer for issuance<br \/>\nof a Writ, in the nature of Certiorari, to quash the order of the second<br \/>\nrespondent dated 28.06.2007, with consequential relief of Mandamus, directing<br \/>\nthe respondent Nos.2 and 3, to refund the Earnest Money Deposit of Rs.36,400\/-<br \/>\n(Rupees Thirty Six Thousand and Four Hundred only).\n<\/p>\n<p>\t\t2. The Tamil Nadu Electricity Board floated a tender, for sale of<br \/>\nFerrous and Non Ferrous Scrap items, condemned Transformers etc., which were<br \/>\navailable at Central Stores \/ TEDC \/ Thanjavur, by a sealed Tender.\n<\/p>\n<p>\t\t3. The petitioner participated for Lot Nos.3 and 4 of the tender,<br \/>\nand quoted a sum of Rs.46,52,000\/- (Rupees Forty Six Lakhs and Fifty Two<br \/>\nThousand only) for Lot No.3, and Rs.7,28,000\/- (Rupees Seven Lakhs Twenty Eight<br \/>\nThousand only) for Lot No.4, and deposited 5% of the amount i.e., Rs.2,70,000\/-<br \/>\n(Rupees Two Lakhs and Seventy Thousand only) towards earnest money.\n<\/p>\n<p>\t\t4. The tender of the petitioner was not accepted as other tenderers<br \/>\nquoted higher rate.\n<\/p>\n<p>\t\t5. As per the terms of the tender, the Earnest Money Deposit was<br \/>\nliable to be refunded to the tenderer, in case, the tender was not accepted.\n<\/p>\n<p>\t\t6. The respondents refunded the Earnest Money Deposit for Lot No.3,<br \/>\nbut, the  Earnest Money Deposit of Rs.36,400\/- (Rupees Thirty Six Thousand and<br \/>\nFour Hundred only) for Lot No.4 has been ordered to be forfeited by way of the<br \/>\nimpugned order.\n<\/p>\n<p>\t\t7. The Impugned Order reads as under:-<\/p>\n<pre>\n\"Tamil Nadu Electricity Board\n\t\tFrom\t\t\t\t\t\tTo\n\t\tEr.S.Mohan, B.E., \t\t\t\tM\/s. Niranjan Industries,\n\t\tChief Engineer,\t\t\t\tT.S.No.216, 217,\n\t\tDistribution,\t\t\t\tNew Ramnad Road,\n\t\tTiruchy Region.\t\t\t\tMadurai - 625 009.\t\t\n<\/pre>\n<p>\t    Lr.No.CE\/D\/TRY\/RSO\/Specn.No.57\/06-07\/D.467\/2007 Dt. 28.06.2007<br \/>\n\t\tDear Sir,<br \/>\n\t\t\tSub:- CE\/D\/Ty&#8217;s Specifiction No.57\/06-07 &#8211; Sale of Scrap<br \/>\n\t\t\t\tMaterials at Central Stores \/ Thanjavur &#8211; E.M.D for<br \/>\n\t\t\t\tfailed intimation of.\n<\/p>\n<p>\t\t\tRef:-  (1) CE \/ Distn.\/Trichy Specn. 57\/06-07.\n<\/p>\n<p>\t\t\t\t\t\t* * * * * *<br \/>\n\t\tYou are informed that the E.M.D. paid by you for Rs.36,400\/- (Rupees<br \/>\nThirty Six Thousand and Four Hundred only) for Lot No.4 against Chief Engineer \/<br \/>\nDistribution \/ Trichy Specn.No.57\/06-07 is forfeited as per Tender Specification<br \/>\nClause 7(h).\n<\/p>\n<p>Yours faithfully,<br \/>\n(G.M.RAVINDRANATHAN)<br \/>\nExecutive Engineer \/ Elecl<br \/>\nFor Chief Engineer Distn \/ Trichy&#8221;\n<\/p>\n<p>\t\t8. Clause 7(h) of the Tender Document, which has been invoked to<br \/>\nforfeit the  Earnest Money Deposit reads as under:-\n<\/p>\n<p>\t\t&#8220;7(h) If there are any discrepancies in the rates quoted by the<br \/>\ntenderer, the rates advantageous to the Board only will be taken. No correction<br \/>\nin rates and in other terms and conditions will be admitted after submission of<br \/>\ntenders, and during opening of tenders and any time subsequently and if<br \/>\nrequested so it will be assumed that the tenderer has backed out and EMD paid by<br \/>\nhim will be forfeited to Board without further reference to him&#8221;.\n<\/p>\n<p>\t\t9. It is not understood, how this clause could entitle forfeiture of<br \/>\nearnest money. That the amount was mentioned in words, which was to be taken as<br \/>\ntender amount and not the numerical.\n<\/p>\n<p>\t\t10. Secondly, in order to see whether the numerical amount was right<br \/>\nor the amount mentioned in word, then the Earnest Money Deposit of 5% was to be<br \/>\ntaken into consideration.\n<\/p>\n<p>\t\t11. From any angle, it is seen that the offer of the petitioner was<br \/>\nfor Rs.7,28,000\/- (Rupees Seven Lakhs Twenty Eight Thousand only), which could<br \/>\nbe taken to be the tender amount, which was rightly not accepted.\n<\/p>\n<p>\t\t12. It is not a case where the Tamil Nadu Electricity Board accepted<br \/>\nthe tender of the petitioner, by taking numerical amount to be the tender<br \/>\namount, nor there is anything on record, to show that after acceptance of the<br \/>\ntender, the petitioner backed out from the contract, which could entitle the<br \/>\nrespondent Board to forfeit the Earnest Money Deposit, by invoking clause 7(h)<br \/>\nof the tender document.\n<\/p>\n<p>\t\t13. The impugned order, on the face of it, is arbitrary, and cannot<br \/>\nbe sustained in law. The statutory authorities are bound to act fairly, and<br \/>\ncannot be allowed to harass the public, by withholding the EMD of a tenderer<br \/>\nwhose tender was not accepted.\n<\/p>\n<p>\t\t14. The impugned order does not show whether any request for<br \/>\nvariation of the rate was made, to attract Clause 7(h) of the tender, which has<br \/>\nbeen invoked to forfeit the EMD.\n<\/p>\n<p>\t\t15. This writ petition is allowed, the impugned order is set aside,<br \/>\nand writ in the nature of mandamus is issued, directing the respondent to return<br \/>\nthe EMD amount of Rs.36,400\/- (Rupees Thirty Six Thousand and Four Hundred only)<br \/>\nto the petitioner, within one month of the receipt of certified copy of this<br \/>\norder.\n<\/p>\n<p>\t\t16. The petitioner shall also entitled to costs of this petition,<br \/>\nwhich is assessed at Rs.5,000\/- (Rupees Five Thousand only).\n<\/p>\n<p>Dpn\/-\n<\/p>\n<p>To\n<\/p>\n<p>1. The Tamil Nadu Electricity Board,<br \/>\n     represented by its Chairman,<br \/>\n     Chennai &#8211; 600 001.\n<\/p>\n<p>2. The Chief Engineer \/ Distribution,<br \/>\n     The Tamil Nadu Electricity Board,<br \/>\n     Trichy Region, Thennur, Trichy &#8211; 17.\n<\/p>\n<p>3. The Superintending Engineer,<br \/>\n     The Tamil Nadu Electricity Board,<br \/>\n     Thanjavur Electricity Distribution Circle,<br \/>\n     Thanjavur.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Madras High Court M\/S. Niranjan Industries vs The Tamil Nadu Electricity Board on 25 August, 2011 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT Dated: 25\/08\/2011 Coram THE HONOURABLE MR. JUSTICE VINOD K. SHARMA Writ Petition (MD) No.6185 of 2008 M\/s. Niranjan Industries, Represented by its Proprietor, S. Venkatesan, Son of Subramania Pillai, (Aged about [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,13],"tags":[],"class_list":["post-209361","post","type-post","status-publish","format-standard","hentry","category-high-court","category-madras-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S. 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