CIN No.: U40109PB2010SGC033813

General Conditions for Auction

1.           Conditions of Auction sale

 For the purpose of these rules, the Disposal Committee constituted by the Punjab State Electricity Board, for disposal of surplus, obsolete, unserviceable store/Tools and plant/Equipment etc. (hereinafter referred to as ?Goods?), shall be called as the Committee. A person bidding on behalf of another person /persons should produce a Power of Attorney from such other person/persons in all matters concerning auction sale. In  the absence of such Power of Attorney the bid, if accepted shall be registered in the name of actual bidder and he shall be responsible to the Punjab State Electricity Board(hereinafter called the Board) for any loss etc.,  which might occur to the Board as a result of his action without proper authority. In the event of any dispute between bidders, the same shall be decided by the Disposal Committee and goods in question, re-auctioned at its discretion. The Disposal Committee?s decision as to such acceptance shall be final and binding on all the persons offering bid at auction.

2.           Registration of Bidders:

All the prospective bidders shall have to deposit, before the auction, a sum of Rs.5,000/-( Rs. Five thousand only) per person as Registration Fee, in the shape of cash or Bank Draft payable at Patiala in the name of AO/Disposal, PSEB, Patiala which shall be returned after the completion  of the auction, unless the same is forfeited in favour of the Board as per clause-3.

3.         Earnest Money Deposit:   

            10% of Bid value (rounded to the nearest hundred subject to minimum of Rs.5,000/-shall be deposited in cash by the highest bidder as Earnest Money immediately on Fall of Hammer. In case bidder fails to do so, the bid registration money shall be forfeited, bid cancelled and goods reauctioned.

The Earnest Money shall be refunded after faithful execution of the sale confirmation order and on production of a certificate from Sales Barrier (in case of Interstate Sale) that the goods concerned have crossed the Punjab State Barrier.

In case of default or non-fulfillment of the terms of Sale Order, the Earnest Money shall be forfeited.

4.        Period for payment and lifting of goods:

(a)       Cent percent value of goods plus Sales Tax, surcharge and other taxes shall be paid by the successful bidders in the specified office of the Board and Goods lifted within the periods of 30 days and 45 days respectively from the date next to the date of issue of sale order.

(b)      Disposal Committee may allow the purchaser in genuine cases to make part payment and take part delivery of goods. In such cases Disposal Committee may direct the purchaser to pay extra amount with each installment, which shall be specified in the Sale Order, and this extra amount will be adjusted by short payment of last installment. In such cases it must be ensured that the payments as well as the lifting of goods for final installment are completed within the prescribed time schedule given above. While allowing delivery the purchaser shall not be allowed to pick and choose the material of the lot. He shall have to start lifting from any one end and complete the lifting process stage by stage in      proper order.

(c)       If the last day specified for making payment/lifting happens to be a holiday, the payment/lifting shall be allowed on the next working day.

(d)      In the event of failure to complete the payment of Sale value of the goods, within the stipulated period or the extended period where extension in time has been granted, the sale of such lot shall be cancelled and Earnest Money already paid by the defaulting bidder, shall stand forfeited for all intents and purposes. The goods shall then be resold as and when the Board thinks best without any notice to the defaulting person/party. Any gain/loss on resale shall belong to the Board.

(e)       Prices offered at the time of bid shall always be deemed to be ex-stores of the Board, exclusive of Sales Tax, Education cess and any other taxes/statutory levies, that may be levied by the Govt./Local Bodies.

(f)        Sales Tax other taxes, leviable on the sale of goods to the bidders shall always be payable by the purchaser.    In case of difference/disputes regarding the rate, amount of Sales Tax due to a particular transaction, the decision of the Taxation Authorities concerned shall be final and binding upon the purchase. This shall be obtained by the purchaser. However, in case, the purchaser is registered dealer for dealing in the goods under Sales Tax Act, he may submit form ST-XXII in lieu of the Sales Tax wherever applicable. In case the firm of the purchaser is located outside the Punjab State, he will have to pay full CST at the time of making payment of the sales price of the goods. In case he is a registered dealer under the CST Law and deals in the goods purchased by him, he   may give form?C? and pay CST at concessional rates as declared by the Govt.

(g)       Income-Tax is payable by the purchaser as per Income-Tax law along with the payment of the material.

(h)       Any octroi duty, which becomes payable by the Board for the sale of goods shall be paid by the purchaser in addition to the price, and the payment shall be made by him to the concerned local authority on behalf of the seller. Any other taxes due in respect of sale, under any law, for the time being in force, shall be payable by the purchaser to the Board in addition to the price.

(i)         All expenditure towards transferring the ownership of the goods, e.g. vehicle etc. shall be borne by the purchaser and he shall be required to initiate and take action for transferring the ownership of the goods.

(j)         For all payment received by the Board, a stamped receipt shall be issued to the purchaser, who shall in all cases, be bound to produce such a receipt when called for. He shall also affix his signatures on the backside of the counterfoil of the receipt.

5            Penalties for delay

(a) Delayed payment of sale price:

Where the purchaser fails to make the payment of Sale Price within the period stated in clause-4 (a) above the Earnest Money deposited shall be forfeited and the purchaser shall have no claim over the amounts so forfeited and the goods put up for sale. However, the committee may allow extension in time limit very discreetly in genuine cases.

Where the committee finds that there are no genuine reasons for grant of such extension the same may be allowed by the Committee by imposing penalty upto the limits given below:-

(i) First four weeks:  1% of the unpaid amount per week or part thereof.

(ii) Next four weeks:  2% of the unpaid amount per weeks or part thereof.

(iii) No extension beyond 8 weeks shall be allowed except where force-majeure conditions are established. This however does not in any way prejudice the authority of the committee to give extension beyond 8 weeks under special circumstances.

(b) Delayed lifting

            The goods paid for, must be completely removed by the purchaser, at his own expense, within the period specified in clause-4 (a) above. In case the goods are not removed within the specified time, storage space charges

Shall be levied at rates noted below:-

i)                    ¼% per day of the value of the unlifted goods for the first 10 days.

ii)                  ½% per day of the value of unlifted goods for the next 10 days.

iii)                 1% per day of the value of the unlifted goods beyond 20 days.

Even though 100% price of the sale order may have been paid within the prescribed period, if the material is not lifted and the bill of storage space charges, according to the tariffs stated above builds upto a value     equal to the amount of sale price of the material not lifted, which has already been paid by the purchaser, all rights of the purchaser on the material shall be forfeited and the material shall automatically become property of the Board without any notice to the purchaser. The Earnest Money deposited by the purchaser shall also be forfeited in favour of the Board. The price paid by the purchaser shall be deemed as adjusted against the bill of storage space charges accrued against the purchaser. As a consequence the Board shall retain full rights to dispose off this material in the manner it may deem fit without any notice to the defaulting purchaser.

        Conditions of Goods:

(a)    The goods shall be sold on ?As-Is-Where-Is Basis.? The whole of the goods shall be removed by the purchaser after fulfilling the conditions of auction sale, from the site of accumulation, irrespective of all faults and errors in description or otherwise, quantities sizes, measurements, number and weight etc. as compared description in the advertisement, which description is only approximate and does not imply any warranty or guarantee. The stores are sold on the presumption and assumption that the bidder/bidders have inspected the goods and know that they are buying irrespective of the fact whether they have actually been inspected by them or not, prior to the auction and the principal of ?Caveat Emptor ?shall apply. No complaint what-so-ever of any kind in connection with faults in the quality/quantity/ingredients of the material or others on account of Road/Tax/Registration of vehicle etc. shall be entertained after acceptance of the highest bid.

(b)     In contrast to what has been stated in para-6 (a) above, in case, where the committee proposes to auction any particular item/items of store on the basis of weight or number and not on lot basis, announcement to that effect will be made before the goods are put to auction. The bids, in such cases, shall be for each number or unit of weight. In such cases, therefore, the Board shall be responsible for delivering the material to the purchaser by number or by units of weight as the case may be. This method of precise delivery, is however not applicable to sale of goods under Para-6 (a) 

 6. Risk

The highest bidder despite having made part payment at the fall of hammer shall not be deemed to claim ownership of the material, proposed to be sold to him till he makes full and final payment. After making full payment, it is expected that the purchase shall lift the material from Boards store without any loss of time. He is however, at liberty to lift the material at his own convenience subject to the condition that total   lifting of material is completed within the stipulated period under these rules and subject to a further liability that if, after making full payment but prior to taking delivery of the material, any thing happens resulting into deterioration/damage to the condition of the material under sale, due to the acts of nature, acts of God or force majeure conditions beyond the risk of the purchase himself and the Board shall entertain no claim for such damages, which have been caused due to various force majeure condition.

7. Delivery

Goods sold through Sale Order, issued by the Committee, Shall have to be removed by the purchaser or his authorized representative, from the site of accumulation, within the period prescribed in Clause-4(a) above. This period will commence from the day following the date of issue of sale order, i.e. the date of issue of sale order is not to be counted in the number of days, allowed for lifting the material. The deliveries shall be made by the XEN/SDO incharge of the stores only during working hours on working days, on presentation of sale/Release Order with the copy of the same received by him direct, before permitting the removal of the goods.

The purchaser or his representative who has signed the Bid Sheet will have to visit the concerned store of Board to acknowledge the receipt of material sold. In case he is not in a position to visit personally due to any reason, the material will be delivered to his representative only on production of Power of Attorney on a non-judicial stamp paper of requisite value duly attested by Ist class Magistrate or the Notary Public in his favour. The Board shall not be responsible for any delay which may occur on this account. However, if the total value of sale order does not exceed Rs.5, 000/-(Rupees Five Thousand only), the goods will be delivered to the representative of the purchaser on the basis of authority letter on the letter pad of the firm duly attested by any officer of the Disposal Committee.

The XEN/SDO (stores) or the officers assigned with the duty of delivering the goods purchased by the purchaser may, however at his own discretion decline to accept any such   authority and refuse to deliver the goods to the representative of the purchaser. The XEN/SDO shall record his reasons for such refusal to deliver the material to the representative having the proper Power of Attorney and convey the same in writing to the purchaser or his representative who presents himself for taking delivery of the material, under intimation to SE Disposal/Controlling Officer. In such matters the discretion of the officer, required to make delivery shall be final and binding on the purchaser.

In case the delivering officer does not recognize the purchaser at the time when the purchaser or his representative comes to take delivery, the officer, bound for making delivery has a right to ask for such introduction of the purchaser or his representative as may satisfy him, if the purchaser or his representative is unable to establish his identity beyond doubt and to the full satisfaction of the officer, the delivery shall be refused till such time such satisfaction is arranged by the purchaser.

8 Measurement / Weightment

When the material is to be sold on the basis of weight, the weighment shall be done by the weighing machine available in the stores of the Board, in case such a weighing machine/arrangement is available. In cases where proper weighing machine facilities are not available in the Board?s stores, the material will be weighed at the nearest weigh bridge of the Municipal Committee or Railways, whichever is nearest to the Board?s store. The decision of the XEN/SDO incharge of the stores in his matter, will be binding on the purchaser. Cost, if any, involved in the process of weighing shall be borne by the Board. The purchaser shall, however, make his own arrangement for loading, un-Loading and transport of the material purchased by him and he shall not be entitled to any claim for facilities or assistance for such transport/loading/un-loading.

It may, however, be clearly understood that the Disposal Committee reserves the right of increasing/decreasing the quantities of any item advertised for sale at its own discretion and without assigning any reasons. Moreover, quantities mentioned in the advertisement or in sale order, are approximate and subject to variation at the time of the delivery. In such cases, therefore, the rate per unit of weight or rate per unit of quantity shall rule for the purpose of price adjustment according to the actual quantity delivered. No compensation shall however, become due to the tenderer because full quantity as mentioned in the advertisement/sale order, could not be delivered.

9- For old and used Transformer/Lubricating oil and Battery Scrap

i)                    Only such units which are actually users and are registered with the. M.O.E.F. New Delhi shall be allowed to participate in the auction of old and used transformer oil and lubricating oil/Battery scrap. The bidders shall have to produce the original as well as one attested copy from Notary Public of the following:-

a)      Registration Certificate issued by M.O.E.F. New Delhi as Recycler/Reprocess of Hazardous wastes etc.

b)       Consent under Water and Air Acts and authorization under Hazardous Wastes (Management and Handling) Rules-1989 and amendments thereof from the respective State Pollution Control Boards.

The bidders shall submit an authority letter authorizing him to participate in the auction (with an attested photograph pasted on it) from the Director of the firm in whose name the M.O.E.F. certificate has been issued.

The original certificates of Registration shall be returned to the respective bidders after verification.

ii)                   The bidders shall produce the Log Book duly endorsed by the previous sellers for the quantity of oil purchased till date.

iii)                 Quantity of Recyclable waste shall not exceed the prescribed limit as per certificate issued by the M.O.E.F.  New Delhi.

10-Re-Sale

Re-Sale within the premises of the Board shall not be recognised and the sale/release order shall be issued by the Board only in the name of actual purchaser whose highest bid during the auction was accepted.

11.     The purchaser shall be responsible for any damage that may be done to the premises or other material etc. of the Board in taking delivery or removing the goods bought by him. The Disposal Committee or its representative may at its or his option, ask the purchaser to make good such damage and the purchaser shall have to pay the same on demand..

12.      In the event of the Disposal Committee being of the opinion that bidders are forming a ring and fair prices are not being realized for stores offered in auction, it reserves the right to stop the sale forthwith without assigning any reason.

13.      The committee reserves the right of withdrawing from the sale of any goods advertised in the auction notice, increase or decrease the quantity at the time of auction.

14.              Should it be revealed at any stage that a purchaser of goods, in a specified auction, is liable to pay certain damages or certain sum of money to the Board either as a result of transaction undertaken in that specific auction/sale or any other prior auction/sale or transaction conducted by the purchaser and the Board, the Board shall without any prejudice to any other remedy available to it be entitled to deduct sum of money/moneys from the proceeds or resale of the goods or from any sum becoming due to such a purchaser thereafter, under any other future contract/transaction between that purchaser and the Board. If even this adjustment is not sufficient to cover the full amount recoverable from such purchaser, then the purchaser shall pay to the Board on demand, the balance becoming due from him.

15.              Should there be any amount becoming due to be payable to the purchaser/bidder (including Earnest Money) under this auction sale or any other account, such amount may be appropriated/adjusted by the Board or any other person/persons acting on behalf of the Board or otherwise adjusted against the claims of the Board, against any purchaser/ individual, was adjusted with the claims of the purchaser against the Board in any other transactions.

16-      Correspondence.

All correspondence regarding the auction and sale order shall invariably be addressed to the Controller of Stores & Disposal,F-1, Shakti Vihar Complex, PSEB,Patiala-147001.

17.        Jurisdiction.

All legal proceedings in connection with this auction sale order/contact shall be subject to territorial jurisdiction of local Civil Court at Patiala only.

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