Authority: High Court at Calcutta (Constitutional Writ Jurisdiction)
Order Date: 07‑Oct‑2026
Case Overview
- Petitioners: M/s. Bhanu Metal Industries & Ors.; Respondents: Union of India & Ors., including Respondent No.2 and Respondent No.3 (government agencies).
- Respondent No.3 floated e‑tender MSTC/ERO/PRASAR BHARTI, ADG(E)(EZ), Kolkata/2/Behind of Eden Garden Stadium/23‑24/28025 (401446) on 1‑Nov‑2023 for sale of scrap and e‑waste material, inspection period 9‑31 Oct 2023.
- Bhanu Metal Industries inspected the material, was declared “successful bidder”, and was the highest bidder. Sale intimation required deposit of Rs 67,55,000 (ex‑GST) on 1‑Nov‑2023.
- On 18‑Dec‑2023 the petitioner deposited Rs 70,92,500 (including GST); delivery order issued by Respondent No.2 on 19‑Dec‑2023, with last delivery date 17‑Jan‑2024.
- A fire occurred on 10‑Nov‑2023 in Godown 2 at Cossipore, damaging some auction materials. Committee of four officers assessed burnt material cost at Rs 19,450.
- Petitioners discovered damaged/missing material on 22‑Dec‑2023, informed respondents on 28‑Dec‑2023, and requested cancellation and refund on 8‑Jan‑2024. Respondent No.2 advised Respondent No.3 to cancel and re‑tender; Respondent No.3 did not act.
- Two inspection reports (16‑Jan‑2024 and 9‑Aug‑2024) concluded limited damage but were not served to petitioners, nor were inspections conducted in their presence.
- Petitioners argued suppression of facts, lack of notice, and refusal to refund despite fire damage.
Final Outcome
- The Court declares the auction null and void.
- Respondent No.3 is directed to refund Rs 70,92,500 to the petitioners within two months, with simple interest at 5 % per annum calculated from 19‑Dec‑2023.
- GA No. 1 of 2026 and GA No. 2 of 2026 are disposed of; W.P.O. No. 252 of 2025 is allowed.
Topics: Legal Dispute, Refund Order