The writ petitioner has approached this Court aggrieved by the action of the second respondent in forfeiting the bid security which was submitted by it in the course of a process for award of contract initiated by that respondent. The challenge essentially is to the communication of 18 March 2019 & 28 May 2019 pursuant to which the second respondent apprised the petitioner of its decision to forfeit the bid security which had been submitted.
40. In the light of the foregoing discussion, we are of the considered opinion that the appellant did not commit any breach of the term(s) and condition(s) of the notice inviting bids and on the other hand, it was the respondents who committed breaches. In these circumstances, the State had no right to forfeit the security amount and instead it should have been returned when demanded by the appellant.”
Where, however, forfeiture takes place under the terms and conditions of a public auction before agreement is reached, Section 74 would have no application.”
IN THE HIGH COURT OF DELHI AT NEW DELHI
Judgment pronounced on: 31 March 2022
W.P.(C) 8779/2019,
CM APPLs. 36308/2019 & 44738/2019
THE INDIAN HOTELS COMPANY LTD. Vs UNION OF INDIA AND ORS.
CORAM: MR. JUSTICE YASHWANT VARMA
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