2007 (4) TMI 694 - HC - Indian Laws

Summary

Issues involved: Challenge to forfeiture of Bank Guarantee by Member-Secretary of CMDA without considering petitioner's reply.

The High Court of Madras heard a writ petition challenging the forfeiture of a Bank Guarantee of Rs. 19,60,000 by the Member-Secretary of CMDA. The petitioner sought to quash the decision and prevent further action against their construction project in Chennai. The court noted that the Member-Secretary had issued a show cause notice regarding violations in the construction, to which the petitioner had responded with a detailed reply. However, the subsequent order of forfeiture did not take into account this reply. The court, without delving into the merits of the case, quashed the decision and directed the Member-Secretary to reconsider the petitioner's explanation and issue fresh orders within eight weeks, after providing an opportunity for a personal hearing. The writ petition was allowed with no costs incurred, and the related miscellaneous petition was closed.