Yashaswi Ispat PVT LTD vs. The State Of Assam And 4 Ors

Held

The Court noted that the petitioner, in view of the decision not to permit further lifting of materials and the instructions from the State Government, was no longer interested in lifting the scrap materials under Lot no. 3. The petitioner expressed willingness to withdraw the writ petition provided the respondent authorities complied with the instructions in the letter dated 14.09.2022. The respondents confirmed that they would undertake the process of refunding the deposited money along with admissible interest and appoint a valuer for materials already lifted. The Court disposed of the writ petition with a direction to the respondent authorities to undertake the process as per the letter dated 14.09.2022, including refunding the admissible amount with interest, within two months from the submission of a certified copy of the order. The ratio decidendi is that when parties reach a consensus based on official directives for refund and compensation, the Court will facilitate the implementation of that consensus.

Facts

The petitioner, Yashaswi Ispat Pvt Ltd, participated in an e-auction for scrap materials conducted by Assam Electricity Grid Corporation Ltd (AEGCL) through MSTC Ltd. The petitioner emerged as the highest bidder (H1) for Lot no. 3 with a bid value of ₹6,56,68,189/-. A Letter of Acceptance was issued on 27.05.2022, followed by a Delivery Order on 21.06.2022, with a lifting period initially set at 60 days, later extended to 30.11.2022. However, on 01.07.2022, the petitioner was instructed via email to stop lifting materials as the State Government had directed the process to be kept in abeyance due to alleged irregularities. The petitioner filed a writ petition seeking directions to allow them to lift the materials.

Key Issues

1. Whether the petitioner is entitled to lift the scrap and salvable materials under Lot no. 3, despite the State Government's instruction to keep the e-auction process in abeyance due to alleged irregularities? Petitioner's contention: The petitioner sought a direction to allow them to lift the materials, as they had emerged as the highest bidder and complied with initial deposit requirements. They relied on the fact that the State Government's decision to halt the process was based on alleged irregularities, and they wanted to proceed with their contractual rights. Revenue/State's contention: The respondents, including the State Government and AEGCL, submitted that the entire process of lifting of scrap and salvable materials had been kept in abeyance by the State Government in the Power [Electricity] Department due to alleged irregularities in the auction. They referred to a letter dated 14.09.2022 from the Government of Assam, Power [Electricity] Department, instructing AEGCL to return the deposited money to the bidder along with interest and to appoint a valuer for materials already lifted.