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Judgment
Sanjeev Sachdeva, J
The hearing was conducted through video conferencing.
Petitioner, who claims to be an association of catering service providers, has filed this petition inter alia raising a grievance with regard to the rider
contained in Clause 3 of the Office Memorandum dated 12.11.2020, issued by the Government of India, Ministry of Finance, wherein it is stipulated
that the performance guarantee to be submitted by the contractors on existing contracts be reduced from 5-10 % to 3%.Â
The rider stipulates that the benefit of reduced performance guarantee will not be given in contracts under dispute where arbitration/court
proceedings have already been started or are contemplated.Â
It is submitted by learned senior counsel for the petitioner that there is no clarity insofar as the rider is concerned, for the reason that it dos not
stipulate the nature of dispute.Â
It is contended that there may be possibilities where the claim is of the contractor and not the authority and nonetheless, the same would constitute
a dispute in terms of the rider to Clause-3.Â
It is further contended that to overcome the clause, there is also a possibility that cases where there are no disputes are shown as if there are
disputes pending or contemplated so as to deprive the contractors of the benefit of the said clause.
Learned senior counsel submits that clarity needs to be provided by the Ministry of Finance with regard to the nature fof disputes that would
prevent the contracted from availing the benefit of the Office Memorandum. Â
In view of the above, this petition is disposed of with a direction that the petition be treated as a representation by the Ministry of Finance,
Government of India.Â
The representation be expeditiously considered and disposed of in accordance with law.Â
It is further clarified that if there is any individual dispute of a particular contractor, it would be open to the contractor to raise the dispute in
accordance with law before appropriate forum.
Learned counsel appearing for respondent No.3 under instructions submits that the petitioner-Association is not recognized by them. The issue
of recognition of the Association is left open. Â
Copy of the order be uploaded on the High Court website and be also forwarded to learned counsels through e-mail by the Court Master.