Sanjay Kishan Kaul, C.J. - (1.) NOTICE of motion.
(2.) MR . Gagandeep Singh Wasu, Advocate, accepts notice for respondents No. 1 and 2. The petitioner is a proprietorship firm dealing with the business of foodgrains. A scheme for auction/procurement of pulses is envisaged by respondent No. 2/CONFED in terms of tender notice dated 22.5.2014 (Annexure P/1). It is the case of the petitioner that the terms and conditions specified in Clause -9(f) are so oppressive that they amount to an unfair trade practice and per se are arbitrary and illegal in character. The relevant clause is as under: - f) If reference sample sent by successful bidder fails, his entire security money (including earnest money) shall be forfeited. The forfeited amount will be transferred to Confed Account by the exchange through RTGS after deducting its applicable transaction cost. In case Confed decides to allot tender to L -2, it would be so done at the risk and cost of L -1. If forfeited security of L -1 does not take care of difference in the rate of L -1 and L -2, L -1 would be liable to compensate Confed for additional liability. L -1 will also be debarred from participation in all future auctions conducted by Confed.
(3.) LEARNED counsel for the petitioner contends that there are three consequences on failure of sample test of foodgrain: (i) forfeiture of the earnest amount; (ii) right to recover the differential between the bid of the L -1 and L -2 in case respondent No. 2 allots the tender to L -2; and (iii) a debarment for participation in future auctions for all times to come.;