Case Note & Summary
The petitioner, Karam Chand Thapar & Bros. (Coal Sales) Ltd., a company engaged in coal liaisoning, movement, handling, and delivery, challenged the rejection of its bid and the forfeiture of its Earnest Money Deposit (EMD) by the Chief Engineer (Fuel Management) of Maharashtra State Power Generation Co. Ltd. (MAHAGENCO). The dispute arose from a tender floated by Bokaro Power Supply Company (P) Ltd. on 22 October 2022 for linkage materialisation and shortage minimization for coal supply from Central Coalfields Ltd. The petitioner submitted a bid of Rs.21 crores on 14 November 2022 and was informed on 11 May 2023 that its bid was accepted and a reverse auction would be conducted. However, the bid was subsequently rejected, and a notice dated 17 May 2024 was issued for EMD forfeiture. The petitioner filed a writ petition under Article 226 seeking to quash the rejection and the forfeiture notice. The court issued Rule and, with the consent of the parties, heard the matter finally on 7 April 2025 and pronounced judgment on 9 April 2025. The full text of the judgment regarding the merits was not provided, leaving the ultimate decision and legal reasoning unknown.
Issue of Consideration
Whether the rejection of petitioner's bid and the e-mail dated 17 May 2024 regarding forfeiture of EMD are valid.
