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Delhi High Court - Orders

Manjeet Plastic Industries & Anr vs Union Of India & Anr on 24 February, 2025

Author: Tushar Rao Gedela

Bench: Tushar Rao Gedela

                                    $~153
                                    *           IN THE HIGH COURT OF DELHI AT NEW DELHI
                                    +           W.P.(C) 2010/2025, CM APPL 9469/2025, CM APPL 9470/2025,
                                                CM APPL 9471/2025

                                                MANJEET PLASTIC INDUSTRIES & ANR.                                               .....Petitioner
                                                                                      Through:                 Mr.   Dayan      Krishnan,   Senior
                                                                                                               Advocate with Mr. Shiv Mangal
                                                                                                               Sharma, Mr. Shashank Khuranna and
                                                                                                               Mr. Chaitanya Shrma, Advocates.
                                                                                      versus

                                                UNION OF INDIA & ANR                                                            .....Respondents
                                                              Through:                                       Mr. Vikram Jetly, CGSC with Mr.
                                                                                                             Shreya Jetly, Advocate and Mr. Amit
                                                                                                             Acharya, G.P. for UOI/R-1.
                                                                                                             Mr. Sanat Kumar, Senior Advocate
                                                                                                             alongwith Mr. Tushar Jain and Ms.
                                                                                                             Kanika Gupta, Advocates for NSIC/
                                                                                                             R-2 alongwith Officers of NSIC/R-2
                                                                                                             namely Rajesh Jain and Mr. KGS
                                                                                                             Moorty.

                                                CORAM:
                                                HON'BLE THE CHIEF JUSTICE
                                                HON'BLE MR. JUSTICE TUSHAR RAO GEDELA
                                                                                      ORDER

% 24.02.2025 CM APPL.11244/2025

1. This is an application moved by the petitioner with the prayer to stay the notice dated 21.02.2025 issued by the respondent no.2 for invocation of the bank guarantee issued by the bank in its favour on behalf of the This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/02/2025 at 21:58:28 petitioner. It has been argued by learned senior counsel representing the petitioner that on 17.02.2025, the Court had directed the respondent no.2 to file counter affidavit and thereafter the matter was ordered to be listed on 03.03.2025. He has also drawn our attention to an oral assurance given by the learned counsel representing the respondent no.2 that no coercive measures shall be taken against the petitioner.

2. Learned counsel representing the respondent no.2, however, states that the assurance to the Court was given in the presence of the officers of the corporation namely National Small Industries Ltd. to the extent that pursuant to the subject tender, the work order will not be issued.

3. Be that as it may, when we put a query to the learned counsel representing the respondent no.2 as to whether before invocation of bank guarantee, which is a punitive measure in terms of clause 6 of the RFP, any notice requiring the petitioner to submit explanation was given or not, it has been stated on instructions that no notice was given for the reason that the documents which were furnished by the petitioner during the tender process were found to be non-existent on verification made by the Corporation from the Original Equipment Manufacturer (OEM).

4. Clause 6 of RFP is described as punitive provisions. In case any document furnished by the petitioner was found to be non-existent in the opinion of respondent no.2, it was incumbent upon the respondent no.2 to have issued a show cause notice before taking any action under clause 6 of the RFP, which admittedly in this case has not been done.

5. Accordingly, we provide that the invocation of bank guarantee pursuant to the notice dated 21.02.2025 shall not come in the way of the petitioner in case he succeeds in the writ petition.

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/02/2025 at 21:58:28

6. At this juncture, learned counsel for the petitioner has expressed his apprehension that certain other punitive/coercive measures may be taken by the respondent no.2 such as blacklisting or debarment from future participation of the petitioner in the tenders. To allay such apprehension, learned counsel representing the respondents, in presence of the officers of respondent no.2 who are present in Court, has stated that till the next date of hearing, no such measures shall be taken.

7. The application stands disposed of.

W.P.(C) 2010/2025, CM APPL 9469/2025, CM APPL 9470/2025, CM APPL 9471/2025

8. As per the earlier order, pleadings be completed by the parties.

9. List on 03.03.2025 to be placed high on board.

DEVENDRA KUMAR UPADHYAYA, CJ TUSHAR RAO GEDELA, J FEBRUARY 24, 2025 kct This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/02/2025 at 21:58:30