PAHARPUR COOLING TOWERS LTD vs RAMAGUNDAM FERTILIZERS AND CHEMICALS LTD & ANR.

Judgment text excerpt

$~J * IN THE HIGH COURT OF DELHI AT NEW DELHI Judgment pronounced on : 02.02.2026 + W.P.(C) 6570/2021 PAHARPUR COOLING TOWERS LTD .....Petitioner Through: Mr. Sanjay Ghosh, Sr. Advocate along with Mr. Naman Jain, Mr. Rohan Mandal and Mr. Mohit Garg, Advocates. versus RAMAGUNDAM FERTILIZERS AND CHEMICALS LTD & ANR. .....Respondents Through: Mr. Dipak Kumar Jena, Mr. R.K. Poshwal, Mr. Sandip Munain, Mr. Ashutosh Singh Deo and Mr. Raj Shekar Jena, Advocates. and Ms. Priya Chaudhary, MT Law. Mr. Abhimanyu Garg, Advocate and Mr. Himanshu Singh Yadav, Dy. Manager, Legal (EIL). CORAM: HON'BLE MR. JUSTICE SACHIN DATTA JUDGMENT 1. The present petition has been filed by the petitioner being aggrieved by the encashment/forfeiture of the Bank Guarantee towards the Earnest Money Deposit (hereinafter referred as “EMD-BG”) amounting to Rs. 47,50,000/- by the respondent no.1/Ramagundam Fertilizers and Chemicals Ltd. The said EMD-BG was furnished on Signature Not Verified Digitally Signed By:ROHIT W.P.(C) 6570/2021 Page 1 of 31 KUMAR PATEL Signing Date:03.02.2026 19:23:09 16.12.2015 (with a validity up to 27.12.2016) by the petitioner while participating in a tender dated 09.11.2015 floated by the respondent no.2/Engineers India Ltd (EIL) for the work of “cooling tower and CWTP packages for revival of Ramagundam Fertilizers and Chemicals project”. 2. The petitioner is a company engaged in the business of manufacturing and supplying of cooling equipments including cooling towers. Respondent no.1 is a Joint Venture (JV) company of EIL/respondent no.2 (an engineering consultancy and EPC company under the ownership of the Ministry of Petroleum and Natural Gas, Government of India), National Fertilizer Ltd (NFL) and Fertilizer Corporation of India Ltd (FCIL) formed for setting up gas-based U