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Madras High Court · body

2015 DIGILAW 1298 (MAD)

C. Rajaiyah v. Project Director, Tsunami Project Implementation Unit, Chennai

2015-03-04

V.M.VELUMANI

body2015
Judgment :- The petitioner has filed the present Writ Petition for direction to the second respondent to refund the earnest money deposit of Rs.4,35,000/- to the petitioner. 2. The second respondent has invited Tender for Tsunami Reconstruction of 124 numbers of houses in vulnerable area of coastal habitations of Therkuputhur, Melputhoor, Kunnambivil and Thambivilai Habitation of Dharmapuram Panchayat in Kanyakumari District dated 03.09.2010. The petitioner participated and submitted the Tender and deposited a sum of Rs.4,35,000/- as earnest money deposit as successful bidder. The first respondent accepted the tender in his letter No.L.S.No.DIU.01/1000/2010, dated 08.09.2010 and directed the petitioner to furnish Performance Security of Rs.22,03,900/- lakhs within 21 days of the receipt of the letter, dated 08.09.2010. At that time, the petitioner was admitted in the J.K.Hospital, Nagercoil due to sleep apnea. The J.K.Hospital Doctors have referred the petitioner in the Kerala Institute of Medical Science, Trivandrum and he was admitted in the Intensive Care Unit in Kerala Institute of Medical Science, Trivandrum on 03.09.2010. After the treatment he was discharged from the hospital on 12.09.2010. 3. According to the petitioner, Doctors advised him to take bed rest and use Auto Pap regularly. Due to his ill-health, he was not able to proceed with the work and therefore, sent a representation to the respondents on 27.04.2010 to refund the earnest money deposit of Rs.4,35,000/- and requested to allot work to any other contractor. The respondent did not pass orders on the representation. Therefore, the petitioner filed the present writ petition for the relief stated supra. 4. The writ petition is of the year 2010, the respondents have not filed any counter. 5. Heard Mr.V.M.Balamohan Thambi, learned counsel appearing for the petitioner and Mr.M.Murugan, learned Government Advocate, appearing for the respondents. 6. The petitioner deposited a sum of Rs.4,35,000/- as earnest money deposit. He was successful bidder. As per the tender condition he has to furnish Performance Security of Rs.22,03,900/- within 21 days. He did not furnish the same as per 34.3 of ITB. Therefore, respondents forfeited the EMD deposited by the petitioner. ITB clause 34.3. 6. The petitioner deposited a sum of Rs.4,35,000/- as earnest money deposit. He was successful bidder. As per the tender condition he has to furnish Performance Security of Rs.22,03,900/- within 21 days. He did not furnish the same as per 34.3 of ITB. Therefore, respondents forfeited the EMD deposited by the petitioner. ITB clause 34.3. is reads as follows:- "Failure of the successful bidder to comply with the requirements of sub-clause 34.1 shall constitute a breach of contract, cause for annulment of the award, forfeiture of the bid security, and any such other remedy the Employer may take under the contract, and the Employer may resort to awarding the contract to the next ranked bidder". 7. Further the petitioner is not entitled to refund as he failed to comply with the terms of tender. His illness will not entitle him to get the refund of Earnest Money Deposit. The said reason is not a valid reason for getting the Earnest Money Deposit. The project was carried out with the assistance of World bank fund for Tsunami Rehabilitation programme for the benefit of people affected by Tsunami. Therefore, the project must be implemented as per the procedure laid down by the World Bank. The petitioner did not comply with the terms and conditions of the tender. The respondents have right to forfeit the amounts. The action of the respondents forfeiting the amounts is valid and legal. In the result, the writ petition is dismissed. No costs.