American Feeds vs Union of India

Moksha Khajuria Kazmi, J

This petition has been preferred by the petitioner seeking direction upon the respondents to release the securities for an amount of Rs.1,86,600/-and Rs.1,18,080/- with interest @ 12% which as per the petitioner is lying with the respondents since 2005, pursuant to the allotment of tender for the supply of concentrate feed to Military Farms Karu (Leh) and Srinagar.

Briefly put the respondent No.2 had invited tender for supply of Feed concentrate for Military Farm, Karu (Leh) and Srinagar w.e.f. July 2004 to 31st of December, 2004 from the Contractors and feed manufacturers. Pursuant to the invitation of the tender, the petitioner submitted his tender and accordingly, the tender for the supply of Feed concentrate was allotted in favour of the petitioner being the lowest tenderer. The allotment of the tender was subject to the deposit of security, to the extent of 10% of the bid amount by the successful tenderer. The petitioner deposited security for an amount of Rs.1,18,080/- for Srinagar and Rs.1,86,600/- with respondent No.2 for Leh, the details whereof are given as under:

The petitioner had deposited Rs.1,18,080/- as security, by virtue of different FDRs, i.e. FDR No.0992034 dated 16.06.2004 for an amount of Rs.12,600/-; FDR No.0992036 dated 16.06.2004 for an amount of Rs.11,100/-; FDR No.848370 dated 11.10.2004 for an amount of Rs.5340/-; FDR No.848371 dated 11.10.2004 for an amount of Rs.41,700/.

As per the tender documents, after the completion of the supply of the Feed to the respondents, i.e. at Srinagar and Karu, the security amount already deposited with the respondents is to be released by the respondents after getting the No Demand Certificate. The petitioner, after getting the supply of the concentrate feed, applied to respondent No.3 for the issuance of No Demand Certificate with respect to supply made at Karu (Leh) and Srinagar which was furnished to him on 25.07.2005 by respondent No.3.

It is stated by learned counsel for the petitioner that despite furnishing of ‘No Demand Certificate’ by the respondents, the security amount, which was duly deposited by the petitioner way back in the year 2004-05 has not been released. Learned counsel further states that for the last more than 20 years, the said amount has not been released in favour of the petitioner without assigning any reason by the respondents.

Per contra, reply stands filed by the respondents.

It is stated by learned counsel for the respondents that the petitioner had not supplied Feed concentrates to the Military Farms, Karu strictly in terms of the Contract, which had resulted in the shortage of the supply. However, it has not been stated in the reply that the petitioner is not entitled to release of the security amount duly deposited by him.

Be that as it may, the instant petition is disposed of with a direction to the respondent Nos.2 and 3 to release the security amount in favour of the petitioner to the tune of Rs.1,86,600/- and Rs.1,18,080/- within a period of two months from the date of passing of this order, failing which, interest would accrue on the said amount @ 6% per annum from the date of passing of this order till its realization.

Disposed of.