Section 116
Auction Of Goods And Recovery Of Amount
(1) If the supplier does not immediately take back the goods rejected pursuant to sub-rule (4) of Rule 115, the public entity shall give information in writing to the supplier to take back such goods within the period specified in the procurement contract and supply, in lieu thereof, the goods conforming to the specifications.
(2) If the public entity sends the information referred to in sub-rule (1) by post or courier service, it shall send a letter along with the return receipt.
(3) If the supplier refuses to take over the goods within the period of the notice referred to in sub-rule (1) or does not remove the goods within the period specified in the procurement contract, the concerned public entity shall sell such goods by public auction and return back the amount remaining after deducting from the auction sale amount the cost incurred in the storage of the goods and other incidental expenses related thereto, the outstanding advance amount, liquidated damages and also other amount, if any, to be paid by him or her to the public entity.
(4) The amount that is not recovered also from the proceeds of the auction referred to in sub-rule (3) shall be recovered from the supplier as government dues according to the prevailing law.