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[Cites 1, Cited by 8]

Madhya Pradesh High Court

M/S Manish Kumar Jain Thr. vs The State Of Madhya Pradesh on 19 January, 2018

         THE HIGH COURT OF MADHYA PRADESH
                   Writ Petition No.1402/2018
      M/s Manish Kumar Jain Vs. State of M.P. and others
                                                                  1
Gwalior
19.1.2018
      Shri Arun       Katare,      learned   counsel    for     the
petitioner.

        Heard on admission.

(1)     Petitioner takes exception       to the communication

dated 4.1.2018        whereby the petitioner           has been

informed that      the decision has been taken to suspend

the registration of the petitioner for a period of three

years    because       of   his     non-compliance       of     the

stipulations contained        in acceptance letter            dated

1.7.2017.       The said letter       of acceptance    was      for

special repairing work      of Bhind-Ater-Porsa Road (SH-

02)     from KM. 00 to KM. 62 (PAC: Rs.227.60 Lacs)

(Tender No.672) which was             in pursuance      to      the

NIT No. 2821/MPRDC/Procu/Maint/BAP/348/2017, dated

17.5.2017. The letter of          acceptance clearly stipulated

the following terms:

              "Your bid for the work mentioned above has
              been accepted on behalf of Madhya Pradesh
              Road Development Corporation Limited at your
              bided percentage 24.99% (Twenty four point
   THE HIGH COURT OF MADHYA PRADESH
              Writ Petition No.1402/2018
M/s Manish Kumar Jain Vs. State of M.P. and others
                                                               2
       nine    nine   percentage)   below    the      bill    of
       Quantities and item wise rates given therein.


       You are requested to submit within 15 (Fifteen)
       days from the date of issue of this letter :
       a.      The performance security/ performance
       guarantee of Rs. 8.54 Lakhs (Rupees Eight lakh
       fifty four thousand only). The performance
       security shall be in the shape of term deposit
       receipt bank guarantee of any nationalized /
       schedule commercial bank valid up to three
       months after the expiry of defects liability
       period.
       b.      The additional performance security /
       additional performance guarantee of Rs. 17.06
       Lakhs (Rupees Seventeen Lakh six thousand
       only). The performance security shall be in the
       shape of term deposit receipt bank guarantee of
       any nationalized / schedule commercial bank
       valid up to Construction period.
       c.      Sign the contract agreement of e-stamp of
       value 0.25% of performance security and
       additional performance security (if any) subject
       to minimum Rs. 500/- or maximum of                    Rs.
       25,000/- as per the Indian stamp (Madhya
       Pradesh Amendment) Act, 2015, cost of e-stamp
         THE HIGH COURT OF MADHYA PRADESH
                    Writ Petition No.1402/2018
      M/s Manish Kumar Jain Vs. State of M.P. and others
                                                             3
             are to be borne by the Bidder.
             d.      Submit copy of the valid registration with
             the Govt. of Madhya Pradesh, PWD at the time
             of signing of the contract agreement.
                     Please note that the time allowed for
             carrying out the work as entered in the bid is 02
             months including rainy season, shall be reckoned
             from the date of signing the contract agreement.
                      Signing the contract agreement shall be
             reckoned as intimation to commencement of
             work and no separate letter for commencement
             of work is required. Therefore, after signing of
             the agreement, you are directed to contact the
             Engineer-in-charge/      Concerned      Divisional
             Manager of MPRDC for taking the possession of
             site and necessary instructions to start the
             work."
(2)    Evidently      the petitioner has not complied the

stipulation contained in clause a, b, c and d within the

time stipulated. Instead, sought certain clarification qua

the GST which was not the condition laid down in the

letter of acceptance.         The     consequence of non-

compliance        of the terms of   letter of acceptance     is

spelt out    in clause 23.1 (Section-2: I.T.B.). The same
         THE HIGH COURT OF MADHYA PRADESH
                    Writ Petition No.1402/2018
      M/s Manish Kumar Jain Vs. State of M.P. and others
                                                4
was informed to the petitioner vide communication

dated 12.7.2017, 22.7.2017 and 1.8.2017 failing which

the petitioner was informed that besides cancelling the

letter of acceptance          his registration   shall also be

suspended          for a period of three years. Since the

petitioner did not comply of the same, therefore, as per

clause 17.6 and 23.3            (Section-2:I.T.B.) the earnest

money     deposited by the petitioner was forfeited          and

was issued a notice         as to why the registration be not

suspended. As the petitioner failed to response to the

same, the impugned order came to be passed.

(3)     Though it is contended on behalf of the petitioner

that gross error has been committed by the respondents

in cancelling the letter of acceptance and by suspending the registration for a period of three years. However, taking into consideration the fact that it is the petitioner who had failed to abide by the stipulations contained in letter of acceptance dated 1.7.2017 as also the notices issued to him i.e. on 12.7.2017, 22.7.2017 and 1.8.2017, we do not find any illegality THE HIGH COURT OF MADHYA PRADESH Writ Petition No.1402/2018 M/s Manish Kumar Jain Vs. State of M.P. and others 5 on the part of the respondents in passing the impugned order as would warrant any indulgence.

(4) Consequently, petition fails is dismissed. No costs.


                    (Sanjay Yadav)                   (Anand Pathak)
                         Judge                          Judge
pawar/-


   ASHISH PAWAR
   2018.01.23 12:21:29 +05'30'