RAJESH ENTERPRISES Vs. UTTARAKHAND POWER CORPORATION LTD & ORS
HIGH COURT OF UTTARAKHAND
Uttarakhand Power Corporation Ltd And Ors
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(1.) Heard Mr. Lok Pal Singh, Advocate for the petitioner and
Mr. B.D. Upadhyay, Senior Advocate assisted by Mr. Sunil
Upadhyay, Advocate for the respondents.
(2.) The petitioner manufactures wires and cables and
supplies them, inter alia, to its consumers, including
Uttarakhand Power Corporation Ltd. An order was given to
the petitioner for supply of certain quantity of Aluminium
Conductor Unarmored Power Cable. Supply of this particular
product was made to the Uttarakhand Power Corporation
Ltd. which was declared to be defective by them and the
petitioner offered to take the goods back. However, the supply
of the said goods was again made by the petitioner which was
again declared to be defective inasmuch as a large portion of
it was much below the Guaranteed Technical Particulars.
Consequently a show cause notice was given to the petitioner
vide letter dated 23.4.2012 which reads as under :-
"14 Km. Cable of size 1 x 240 Sq. mm was supplied
by you against DI No. MM/240/2011-12/Rajesh dt.
03.10.2011. Above cable was found under size during
joint inspection held on 04.11.2011 at Store Division,
Dehradun and the same was rejected and on your
request, you were allowed to lift all rejected lot of cable
and to replace the same with new cable strictly as per
specification & agreement.
As reported by Material Management wing of
UPCL, the above cable was re-supplied by you against
D.I. No. MM/473/2011-12 Rajesh dt 23.02.2012 but
the same was also found inferior to the specification
during departmental inspection held on 16.03.2012 at
Store Centre, Araghar, Dehradun (copy of report is
enclosed). Above act on your part is tantamount to
breach of agreement and fraud with the Corporation.
Therefore, show cause notice is being served on
you due to your breach of contractual obligations &
fraud with the Corporation. You are hereby required to
explain to UPCL that why UPCL should not cancel the
Purchase Order No. 332/UPCL/GM/CCP-II/12/2010-
11 (Rajesh) dt. 22.03.2011 for balance quantity, forfeit
the Security Deposit against aforesaid order & black list
you forever participation in tenders of UPCL. You are
required to explain the above within 10 days from the
date of issue of this notice, otherwise it shall be
assumed that you have nothing to say in this matter
and further actions, as deemed fit, shall be taken
accordingly by UPCL."
(3.) As per the said show cause notice, the Power
Corporation wanted the reply within "ten days". The show
cause notice was received by the petitioner within time and
he replied the said notice on 1.5.2012 again stating that the
material was only supplied to the respondents after the joint
inspection was made. Moreover, if the material is defective, he
is prepared to replace the same. However, before this letter
could reach the respondents, an order was passed by the
respondents on 4.5.2012 not only cancelling the entire
purchase order but also blacklisting the petitioner and
sending the copy of the said order to various electricity
departments in the country. It is this order dated 4.5.2012
which has been challenged by the petitioner before this
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