Madras High Court
National Federation Of Farmers' ... vs Tamilnadu Civil Supplies Corporation on 27 June, 2025
Author: N.Anand Venkatesh
Bench: N.Anand Venkatesh
W.P.Nos.20863 and 20865 of 2025
THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 27.06.2025
CORAM :
THE HON'BLE MR.JUSTICE N.ANAND VENKATESH
W.P.Nos.20863 and 20865 of 2025
and W.M.P.No.23567 of 2025 in W.P.No.20863 of 2025
National Federation of Farmers' Procurement
Processing & Retailing Cooperatives of India Ltd. (NACOF),
Rep. by its State Manager, N.Gurusamy,
No.5/1 & 5/2, "A", 1st Floor, Gopala Menon Road,
Kodambakkam, Chennai 600 024.
.. Petitioner in WP.20863/2025
Central Government Employees Consumer
Co-operative Society Limited (Kendriya Bhandar),
Rep. by its Manager, J.Parvathy,
Central Revenue Quarters, 15th Main Road,
Anna Nagar West, Chennai 600 040.
.. Petitioner in WP.20865/2025
-vs-
Tamilnadu Civil Supplies Corporation,
Rep. by The Managing Director,
Poonamallee High Road, Chennai Metro
Rail Limited (CMRL), Admin Building,
Koyambedu, Chennai 600 107. .. Respondent in both WPs.
Page 1 of 7
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W.P.Nos.20863 and 20865 of 2025
Petitions filed under Article 226 of the Constitution of India praying
for issuance of Writ of Certiorarified Mandamus to call for the entire records
relating to impugned order dated 15.05.2025 passed by the Respondent vide
proceedings in Roc.No.BS6/004804/2025, forfeiting the EMD amount of
Rs.3,38,07,000/- paid by the petitioner in the tender floated by the
respondent vide NIT No.BS6/004804/2025 dated 17.02.2025 - TNCSC/24-
25, and quash the same and consequently direct the respondent to refund the
EMD amount of Rs.3,38,07,000/- to the petitioner.
For Petitioner
in both WPs. : Mr.Srinath Sridevan
for Mr.S.Senthil
For Respondents
in both WPs. : Mr.P.S.Raman
Advocate General
Asst. by Mr.D.Ravichander,
Stdg. Counsel.
*****
COMMON ORDER
These writ petitions came up for hearing on 12.06.2025 and this Court
passed the following order:-
"Mr.D.Ravichander, learned Standing Counsel, takes
notice on behalf of respondent.
2. The subject matter of challenge in the present writ
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W.P.Nos.20863 and 20865 of 2025
petitions pertain to the impugned proceedings of the
respondent dated 15.05.205 wherein the respondent has
ordered for the forfeiture of the Earnest Money Deposit (EMD)
of Rs.3,38,07,000/-.
3. The main ground that was urged by the learned
Senior Counsel appearing on behalf of the petitioner is that
instead of quoting the bid price as Rs.1,06,680/- (WP No.20863
of 2025) and Rs.1,09,569/- (WP No.20865 of 2025) by
oversight / mistake it was quoted as Rs.10,668/- and Rs.10956/-
respectively. For this genuine mistake that was committed,
steps are now being taken to forfeit the entire EMD to the tune
of Rs.3.38 Crores.
4. The learned Senior Counsel brought to the notice
of this Court an earlier order passed in WP No.6223 of 2025
under identical circumstances wherein this Court on
considering the grounds raised, directed forfeiture to the tune
of Rs.12.02%. The learned Senior counsel also brought to the
notice of this Court the judgement of the Apex Court in [ABCI
Infrastructures P Ltd Vs. Union of India and others] reported
in 2025 SCC Online SC 327 where the Apex Court had
permitted forfeiture of 6% of the EMD amount. It was further
contended that the said rulings can be taken into consideration
in the present case also.
5. The learned Standing Counsel seeks for some time
to file a counter.
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W.P.Nos.20863 and 20865 of 2025
6. Post these writ petitions under the caption “for
orders” on 27.06.2025."
2. Heard Mr.Srinath Srideven, learned senior counsel appearing for
the petitioners and Mr.P.S.Raman, learned Advocate General appearing for
the respondent.
3. The learned Advocate General submitted that the petitioners are
expected to quote the correct number when they submitted their bidS and
relying upon the number that was quoted by the petitioners, they were
ranked as L1 and L2 and ultimately, the petitioners have withdrawn their
bids. This has caused substantial damage to the respondent. Therefore, the
respondent has proceeded further and has forfeited the EMD amount.
4. The learned Advocate General, further submitted that even if this
Court wants to take into consideration the peculiarity of the facts and
circumstances of the present case and pass orders, it should not be taken as a
precedent in future cases, since it will cause huge loss to the respondent.
5. This Court, after carefully considering the submissions made on
either side and the materials available on record, finds that there has been a
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W.P.Nos.20863 and 20865 of 2025
genuine mistake on the part of the petitioners in quoting the bid as
Rs.10,668/- instead of 1,06,680/- and Rs.10,569/- instead of Rs.1,09,569/-.
In the light of this genuine mistake, it will not be fair to forfeit the entire
EMD amount to the tune of Rs.3.38 crores. However, the petitioners have to
pay for the mistake committed. Hence, considering the earlier order passed
by this Court in W.P.No.6223 of 2025 on 25.03.2025 (between Hyderabad
Agricultural Co-operative Association Limited vs. Tamil Nadu Civil
Supplies Corporation), under identical circumstances and also considering
the judgment of the Apex Court in ABCI Infrastructures Pvt. Ltd. vs.
Union of India and Ors., reported in 2025 SCC OnLine SC 327, this Court
is inclined to permit the respondent to forfeit 8% of the EMD amount.
6. In the light of the above discussion, the respondent Corporation
shall forfeit 8% of the EMD amount and shall refund the remaining amount
to the petitioners within a period of four weeks from the date of receipt of a
copy of this order.
The writ petitions are disposed of in the above terms. No costs.
Consequently, connected miscellaneous petition is closed.
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W.P.Nos.20863 and 20865 of 2025
27.06.2025
Index : Yes/No
Website : Yes/No
Speaking/Non-speaking Order
sra
To
The Managing Director
Tamilnadu Civil Supplies Corporation,
Poonamallee High Road, Chennai Metro
Rail Limited (CMRL), Admin Building,
Koyambedu, Chennai 600 107.
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W.P.Nos.20863 and 20865 of 2025
N.Anand Venkatesh, J.
(sra)
W.P.Nos.20863 and 20865 of 2025
27.06.2025
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