IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. C.W.P. No.17163 of 2009 Date of decision: 3.2.2010 Pardeep Kumar. -----Petitioner. Vs. State of Haryana & others. -----Respondents CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE ALOK SINGH Present:- Mr. Sandeep Kotla, Advocate for the petitioner. Ms. Ritu Bahri, Sr. DAG, Haryana for respondents. --- ORDER: 1. This petition seeks quashing of orders dated 31.3.2009 and 24.6.2009, Annexures P-4 and P-7, forfeiting the security deposited by the petitioner. 2. Case of the petitioner is that in pursuance of Tender Notice for allotment of retail liquor outlet, the petitioner made deposit of security. He was informed that since the bid offered by the petitioner was below the reserve price, the earnest money was forfeited in view of conditions of Public Notice. The petitioner gave a Legal Notice, challenging the forfeiture as being illegal, which has been rejected by impugned order dated 24.6.2009. 3. Contention raised in the writ petition is that there is no condition in the policy or in the advertisement that forfeiture of security on that ground that bid was below the reserve price. CWP No.17163 of 2009 4. In the reply filed on behalf of the State, stand taken is that forfeiture of security was in accordance with Public Notice to the following effect:- “4. The earnest money shall be forfeited in case of bids are found to be quoted less than the reserve price.” 5. We have heard learned counsel for the parties. 6. We have not been able to appreciate justification of the Clause of forfeiture of earnest money only on the ground that the bid was found to be quoted less than the reserve price. Every action of a public authority has to be reasonable and fair. There is no absolute power of forfeiture of amount deposited as security and forfeiture can be justified only if it is necessary to safeguard against loss or a wrongful act. Merely because someone gave bid of lesser amount than the reserve price, cannot provide any justification for forfeiting the earnest money. 7. Accordingly, we allow this petition and direct refund of the earnest money/security deposited by the petitioner within one month from the date of receipt of a copy of this order. 8. The petition is disposed of. (ADARSH KUMAR GOEL) JUDGE February 03, 2010 ( ALOK SINGH ) ashwani JUDGE 2