New Malwa Sales Corp. vs. State Of Punjab And Others
Facts
The petitioner, New Malwa Sales Corporation, participated in a tender floated by Respondent No. 3, Municipal Corporation, S.A.S. Nagar, Mohali. The petitioner was awarded an order for 489 litres of Cyphenothrin 5% and supplied the goods on November 3, 2020, submitting a GST bill. Payment for the supply was made on November 23, 2020. However, the Earnest Money Deposit (EMD) was not released. The petitioner made multiple representations to the respondent authorities on December 1, 2020, and September 15, 2021, seeking the release of the EMD. A legal notice was subsequently sent on September 30, 2022, to the Municipal Corporation for the release of the EMD.
Held
The Court disposed of the petition with the consent of the parties and without commenting on the merits of the claim. Respondent No. 3, the Commissioner, Municipal Corporation, S.A.S. Nagar, Mohali, was directed to examine the grievance raised by the petitioner in their Legal Notice dated September 30, 2022. The Commissioner was further directed to pass a reasoned and speaking order within a period of three months from the receipt of a certified copy of the order, after affording an opportunity of hearing to the respective parties. The Court also stipulated that if any amount was found payable, it should be released forthwith, preferably within three months of such a decision being taken by the respondent authorities.
Key Issues
1. Whether the petitioner is entitled to the release of their Earnest Money Deposit, along with interest at 12% per annum, for the supply of goods to the Municipal Corporation, S.A.S. Nagar, Mohali? Petitioner's contention: The petitioner argued that they had fulfilled their contractual obligations by supplying the goods and receiving payment for the supply. Despite this, the Earnest Money Deposit had not been released. They relied on their representations and the legal notice sent to the respondent authorities. The petitioner sought a direction for the release of the EMD and interest. Respondents' contention: The respondents, represented by the Additional Advocate General, Punjab, accepted notice and had no objection to the prayer made by the petitioner.
AI-generated summary — verify with the full judgment below
2023:PHHC:083760 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 115
CWP-13200-2023
Date of decision: 04.07.2023
NEW MALWA SALES CORPORATION
.......Petitioner
VERSUS
THE STATE OF PUNJAB AND OTHERS
.......Respondents
CORAM : HON'BLE MR. JUSTICE VINOD S. BHARDWAJ
*****
Present:- Mr. Kapil Kumar, Advocate for Mr. Akhil Singh Arora, Advocate
for the petitioner.
Ms. Niharika Sharma, AAg, Punjab
for respondents No.1 & 2. Mr. Saurav Verma, Addl. A.G. Punjab
for respondent No.3 & 4. ***** VINOD S. BHARDWAJ, J. (Oral)
The instant petition has been filed under Articles 226/227 of the Constitution of India for the issuance of a writ in the nature of mandamus directing the respondents to release Earnest Money Deposit against the order executed by the petitioner alongwith interest @ 12% per annum.
Learned counsel appearing on behalf of the petitioner contends that the petitioner had participated in the tender floated by the respondent No.3-Muncipal Corporation, S.A.S. Nagar, Mohali. The petitioner was plac
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