Authority: Court No.12 GB
Order Date: 07.07.2026
Case Overview
- Parties: Hindusthan Industries & Mining Corporation & Ors. (Appellants) vs Union of India & Ors. (Respondents). No counsel appeared for respondents.
- Background: The appellants challenged an order dated 1 March 2021 passed in WPA 5345 of 2021, which directed them to invoke the arbitration clause in a tender issued by railway authorities. The appellants had deposited earnest money of Rs.3,67,800 with their bid but the railway authorities did not finalize the tender or allot the work.
- Allegations: The appellants argued that since the tender was not finalized and no contract was executed, there was no offer and acceptance; consequently, the arbitration clause could not be invoked and they were entitled to a refund of the earnest money.
- Court Observations: The Court found substance in the appellants' contention, noting the absence of a concluded contract and therefore the inapplicability of the arbitration clause.
- Directions: The impugned order is set aside. The writ petition is revived and the matter is remanded for a de novo hearing before the appropriate court. The appeal and the connected application are disposed of. The appellants may approach the learned Judge with notice to the respondents, and the Judge is requested to take up the matter expeditiously. Copies of this order shall be served upon the respondents. Parties are directed to act on the basis of the server copy of this order.
Final Outcome
- The March 1, 2021 order directing arbitration is nullified; the appellants' claim for refund of Rs.3,67,800 is reinstated, and the case is sent back for fresh hearing. The appeal is dismissed.
Topics: Legal Refund, Railway Tender