M/S ENKAY ELECTRICALS INDIA v. THE DIRECTOR GENERAL OF SUPPLIES AND DISPOSALS

1. The grievance made in the petition is the same as made by Allied Engineering Works in W.P.(C) No.5223/2011 disposed of on 28th July,

2011.

2. The counsel for the respondent appearing on advance notice has fairly stated that the decision on the show cause notice already issued to the petitioner shall be taken within six weeks. On enquiry as to why even this much time is required to take decision, the reply having already been submitted by the petitioner, the counsel states that since the rate contracts W.P.(C) 5702/2011 2011:DHC:4018 pertains to Dadra Nagar Haveli and all the records will have to be obtained, this much minimum time is required.

3. The counsel for the respondent has today further drawn attention to Clause 24 of the General Terms and Conditions and which clause is as under:

4. He has contended that the rate contract could thus be foreclosed with a 45 days notice without finding any reason and thus the agreement cannot be said to be specifically enforcible. It is further contended that while Allied Engineering Works had approached this Court well before the date of foreclosure i.e. before 8th August, 2011, the petitioner herein has preferred this petition only thereafter and the Rate Contract already stands foreclosed vide orders made yesterday i.e. on 8th August, 2011, copy of which has been handed over in the Court. It is thus contended that the petitioner would not be entitled to the relief sought of setting aside foreclosure, as was given to Allied Engineering Works. Else, it is stated that the same order as in Allied Engineering Works may be followed.

5. The counsel for the petitioner has contended that this petition was also filed on 6th August, 2011 i.e. prior to the specified date of foreclosure i.e. 8th August, 2011.

6. However attention of this Court on 28th July, 2011 while disposing of the writ petition preferred by Allied Engineering Works having not been invited to Clause 24 (supra) which enables the respondent to foreclose with a 45 days notice without any reason also, it is deemed appropriate that the decision regarding foreclosure qua the petitioner awaits the decision on the show cause notice already issued.

7. The petition is accordingly disposed of with the direction that till the respondent in pursuance to the show cause notice and after hearing the petitioner makes an order finding the petitioner guilty of the offences with which it is charged, the respondent shall not take any steps of de-registration of the petitioner. However since the contract with the petitioner already stands foreclosed, it is directed that the order aforesaid be made and communicated to the petitioner on or before 10th October, 2011. If the order/decision is in favour of the petitioner, the foreclosure shall also stand set aside. Conversely, if the order/decision is against the petitioner, the petitioner shall have remedy in law. The petition is disposed of. No order as to costs. CM No.11639/2011 (for exemption) Allowed, subject to just exceptions. Copy of this order be given Dasti to the counsels for the parties.

RAJIV SAHAI ENDLAW, J AUGUST 09, 2011 bs