2024 (10) TMI 1101 - HC - GST

Challenge to tender notification dated 15.11.2018 issued by respondent No.3 inviting bids for various civil works - non-performance of the work under the tender notification - forfeiture of earnest money deposit (EMD) submitted by the petitioner - HELD THAT - Initially condition No.10 of the tender document mandated separate GST payment on the contract amount as per the Government order dated 10.10.2018. The petitioner having accepted this condition participated in the tender process and secured the bid. Therefore respondent No.3 s decision to issue a corrigendum withdrawing this condition and subsequently forfeiting the petitioner s EMD constitutes an error. The petitioner did not violate any terms specified in the tender notification. Hence respondent No.3 s action in forfeiting the petitioner s EMD amount is deemed arbitrary and discriminatory. Respondent No.3 is here by directed to refund the earnest/EMD money deposited by the petitioner following the tender notification dated 15.11.2018 vide Annexure-A within a period of three months from the date of receipt of certified copy of this order - The writ petition is allowed.

Summary

The petitioner challenged a tender notification requiring separate GST payment, participated in the tender process, and won the bid. The respondent later amended the condition and forfeited the petitioner's EMD for alleged non-performance. The court found the respondent's actions arbitrary and discriminatory, ordering the refund of the EMD within three months.