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TMI Blog2014 (9) TMI 468X X X X Extracts X X X X X X X X Extracts X X X X ..... ason for lowering the reserve price. We fail to see any reason for giving description of the goods as per import as prospective purchaser is not interested in a theoretical analysis of papers, but only what goods had to be bid for. No doubt, this can create an element of confusion as in the bold letters it is mentioned as ‘TEXTILE GOODS’ while in the small print a description is given of the electrical goods under the heading ‘Commodity as per physical examination’. Vast vacillation which has taken place in the price despite the goods not being perishable. No doubt, there has been inordinate delay in rejection of the bid of the petitioner. However, given the situation, it would be appropriate if the goods are put to proper auction pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -. 3. The rejection of the bid has occurred without assigning any reasons for the same though the bid had been provisionally approved as far back as on 20-9-2012, the rejection has been made only on 4-2-2013 and the next auction scheduled for 13-2-2013. 4. The counter affidavit has been filed only of R-2. We have perused the contents of the same as also heard submissions of learned counsel for the parties. There are some glaring facts which emerged from the aforesaid. We may notice that there is a huge problem of containers lying with R-3 on account of delay in disposal of the goods which are either abandoned or seized. Petitions were filed before us by the owners of the containers qua this issue and directions have been issued to see ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... auction has to take place even in such a situation, an aspect which would require closer scrutiny. In fact, after we noticed this aspect, a different plea is sought to be raised before us that the CVC guidelines prohibit a negotiation with H-2. 6. A third auction was held on 19-7-2012 with a further 10% lower reserve price of ₹ 1,94,40,000/-. R-3 was expected to answer as to why there should have been a 10% lowering of the reserve price when the reason the bid failed was not that it was below the reserve price, but that the requisite EMD was not deposited. In fact, the bid made was much higher than the reserve price even maintained on the first bid. Once again, the highest bid received was much higher than ₹ 3,70,91,000/- whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idavit of R-2 also notices the nature of complaint made by M/s. ARS Impex. The complaint emanated from clause 11(xiii) of the terms and conditions of the auction held on 30-4-2012 which provided that if the highest bidder fails to take the delivery within the stipulated time, after submission of the EMD, the goods should be delivered to the next highest bidder. This clause would not apply for the reason that in the present case, the EMD itself was not submitted. However, we have noticed this fact for the purpose that if the offer can be made to H-2 on account of non-delivery post deposit of EMD, then we see no reason why a similar practice should not be followed qua H-2 when the EMD itself had not been deposited. 11. Another complaint ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h is capable of causing deception to the prospective purchaser who is only interested in knowing what the goods are which are sought to be auctioned. 16. The last aspect which we need to note is that as per R-2 it has only an advisory role for R-3. This position is not disputed by R-3 though it has rejected the bid of the petitioner ostensibly on the ground that it has not received the approval of R-2. It is the say of R-3 that there has to be a formal approval of the bid by R-2 and that is why the bid of the petitioner was rejected. The goods are not of a perishable nature. 17. In view of the aforesaid facts and circumstances, we are of the view that both R-2 and R-3 should interact and frame better guidelines for disposal of the goo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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