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Smeatons Projects Pvt. Ltd. Vs. State of Bihar and ors.

Smeatons Projects Pvt. Ltd. vs State of Bihar and ors.

Type Court Judgment Court Jharkhand Decided Sep 19, 2002
~3 min read
https://sooperkanoon.com/case/523251

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Citation
Court
Jharkhand High Court
Judge
Decided On
Case Number
CWJC No. 5267 of 2002
Subject
Contract

Case Summary

AI-generated summary - not the official court judgment text.

- MOTOR VEHICLES ACT, 1988 [C.A. No. 59/1988]Section 173(1) Proviso; [D. Biswas, Amitava Roy & I.A.Ansari, JJ] Appeal without statutory deposit but within limitation/or extended period of limitation Maintainability - Held, If the provision of a statute speaks of entertainment of appeal, it denotes that the appeal ...

Key legal issue
Contract
Acts & sections
Constitution of India - Article 226

Parties & Advocates

Appellant / Petitioner

Smeatons Projects Pvt. Ltd.

Advocate Rajiv Ranjan, Adv.

Respondent

State of Bihar and ors.

Advocate Anoop Kr. Mehta, SC I and; C. Prabha, JC to SC I

Legal References

Acts
Constitution of India - Article 226
Cases Referred
Dilip Kachhap v. State of Jharkhand and Ors. and
Reported In
II(2003)BC699; [2003(1)JCR480(Jhr)]

Excerpt

.....extended period of limitation maintainability - held, if the provision of a statute speaks of entertainment of appeal, it denotes that the appeal cannot be admitted to consideration unless other requirements are complied with. the provision of sub-section (1) of section 173 permits filing of an appeal against an award within 90 days with a rider in the first proviso that such appeal filed cannot be entertained unless the statutory deposit is made. the period of limitation is applicable only to the filing of the appeal and not to the deposit to be made. it, therefore, appears that an appeal filed under section 173 cannot be entertained i.e. cannot be admitted for consideration unless the statutory deposit is made and for this purpose the court has the discretion either to grant time to make the deposit or not. no formal order condoning the delay is necessary, an order of adjournment would suffice. the provisions of limitation embodied in the substantive provision of the sub-section (1) of section 173 of the act does not extend to the provision relating to the deposit of statutory amount as embodies in the first proviso. therefore an appeal filed within the period of limitation or within the extended period of limitation, cannot be admitted for hearing on merit unless the statutory deposit is made either with the memo of appeal or on such date as may be permitted by the court. no specific order condoning any delay for the purpose of deposit under first proviso to sub-section (1) of section 173 is necessary. [new india assurance co. ltd. v md. makubur rahman, 1993 (2) glr 430 and new india assurance co. ltd. v smt rita devi, 1997(2) glt 406, approved. new india assurance co. ltd. v birendra mohan de, 1995 (2) gau lt 218 (db) and union of india v smt gita banik, 1996 (2) glt 246, are not good law]. - or for that matter any other contracting party might like to secure its interest one way or the other. we, accordingly, direct that the state-respondents in this..........being automatically renewed if the contract period is extended for any reason? we are of the considered opinion and view that the insistence on the earnest money being deposited only through nsc is both irrational, illogical and has no nexus with the object to be aggrieved.we, accordingly, direct that the state-respondents in this particular contract as well as in all future contracts shall not insist upon this requirement or prescribe the same with respect to the securing of earnest money. instead, the state- respondents shall ensure that the earnest money payment is properly secured by whatever possible means and methods, whether it is by payment through cash, furnishing of a bank guarantee or a proper and valid f.d.r. for such period as may be desirable or required.'5. in the light of the decision aforesaid, i direct the respondents to accept the earnest money/security deposit, if the petitioner or any other person deposits along with tender documents in pursuance of tender notice no. 2 of 2002-03 either in cash or f.d.r. for the period of contract or bank guarantee, as ordered by the division bench, as quoted above.6. the writ petition stands disposedof.

Full Judgment

ORDER

S.J. Mukhopadhaya, J.

1. Heard the counsel for the parties.

2. It is not in dispute that the petitioner is to deposit the earnest money/security deposit at the time of submitting tender documents as per the Government guidelines.

3. The only question is whether the respondents can force its tenderers to deposit earnest money/security deposit only in the form of NSC or Fixed Deposit or not.

4. The grievance of the petitioner is that Clause 12 of Tender Notice No. 2 of 2002-03 published by Executive Engineer, R.E.O. Works Division, Godda asking for earnest money/security deposit in the form of NSC/'or Fixed Deposit in violation of the Division Bench order dated 23rd January, 2002 of this Court in CWJC No. 1258 of 2001 (Bigla Kachhap @ Dilip Kachhap v. State of Jharkhand and Ors. and analogous case).

In the said case, the Court passed the following orders :

'The concept of the requirement relating to the amount of earnest money by a tenderer is to secure the interests of the Govt. The depositing of earnest money alongwith the submission of the tender document insisted because the Govt. or for that matter any other contracting party might like to secure its interest one way or the other. Why cannot such interests be duly secured if the tenders are asked to deposit the earnest money in cash or through a bank guarantee or by submitting valid for the or by submitting F.D.Rs. Valid for the duration of the contract or till its conclusion, also by containing a stipulation of the same being automatically renewed if the contract period is extended for any reason? We are of the considered opinion and view that the insistence on the earnest money being deposited only through NSC is both irrational, illogical and has no nexus with the object to be aggrieved.

We, accordingly, direct that the State-respondents in this particular contract as well as in all future contracts shall not insist upon this requirement or prescribe the same with respect to the securing of earnest money. Instead, the State- respondents shall ensure that the earnest money payment is properly secured by whatever possible means and methods, whether it is by payment through cash, furnishing of a Bank guarantee or a proper and valid F.D.R. for such period as may be desirable or required.'

5. In the light of the decision aforesaid, I direct the Respondents to accept the earnest money/security deposit, if the petitioner or any other person deposits along with tender documents in pursuance of Tender Notice No. 2 of 2002-03 either in cash or F.D.R. for the period of contract or Bank guarantee, as ordered by the Division Bench, as quoted above.

6. The writ petition stands disposedof.

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