- (1.) The first petitioner is a company registered under the Companies Act, 1956 (hereafter the company). The second petitioner is the Managing Director of the company.
(2.) Coal India Limited (hereafter CIL) invited tenders for supply of cartridge, explosives and accessories. The company expressed interest to supply Detonating Fuse 10 gm. (Power Cord-10) (hereafter the said materials). Its bid was accepted resulting in a running contract executed by and between CIL and the company on 28.11.2008, valid for three years.
(3.) The running contract contains a clause titled Price Fall Clause (hereafter the PFC). It reads as follows: "08 Price Fall Clause During the currency of the Contract, the Prices at which the supplier will supply the stores shall not exceed the lowest Price charged by them to any other Agency including DGS&D. In the event of Price going down, it will be their sole responsibility to promptly pass on such information to enable CIL to reduce the ordered Rate accordingly. In the event of suppliers accepting Lower Price and other incidental Charges for supplies to any other Companies (other than CIL or its subsidiary cos.), the Lower Price and Charges will also be applicable to them for CIL contracts. Supplier must intimate CIL as soon as supplier submit/accept Lower Price/Charges to other Govt. Reputed Organization including PSUs. In the event of Non-intimation by them to this effect, suitable penal action will be taken against them. Further to above, following provision shall also apply to the above supplies, 01. In case any manufacturer sells/offers to sell similar product/product in different Trade name at lower price and offers quantity discount to any buyer outside CIL, the same shall be intimated to CIL for amending the Contract price accordingly. 02. In case it is found that the firm has sold explosives in the above fashion to any buyer outside CIL at lower price and the same has not been intimated to CIL, the matter shall attract the following action, i. Recovery of differential amount from such supplier. ii. In such cases, CIL reserves its right to disqualify such supplier for future business dealings with CIL. However this Price Fall clause shall not be applicable for supply of Nonpermitted Large Dia Explosives against this tender. ";