2016 Supreme(SC) 350
SUPREME COURT OF INDIA
V. Gopala Gowda, Arun Mishra, JJ.
State of Madhya Pradesh & Ors. – Appellants
Vs.
M/s. Ruchi Printers – Respondent
Civil Appeal No. 4817 of 2016 [Arising out of SLP [C] No.32730 of 2013] With C.A. No. 4818 of 2016 @ SLP [C] No. 36095/2013; and C.A. No. 4819 of 2016 @ SLP [C] No. 36096/2013
Decided On : 05-05-2016
IMPORTANT POINT
Principal is not liable for making payment for works done after cancellation of contract.
Headnote:Government contract – Work order placed on 16.1.2008 to be completed by 25.2.2008 – Time was essence of the contract – Printer given time upto 31.3.2008 – Order cancelled on 31.3.2008 – Printer continuing to print upto 22.5.2008 – Communication issued on 22.5.2008 for accepting the booklets recalled – Booklets printed after 31.3.2008 without any work order in existence – High Court enforcing the recalled communication – Not sustainable. (Para 7)
Facts of the case:
The State Printing & Writing Articles Department of Madhya Pradesh through its Controller, invited quotations for printing Bhu-Adhikar and Rin Pustikas. Printing order was placed with M/s. Ruchi Printers for supply of 37,07,726 copies of Bhu-Adhikar and Rin Pustika. At least half of the booklets were to be supplied in the first lot till 8.2.2008 and the rest were to be supplied before 25.2.2008. On 25.2.2008 the Deputy Controller wrote a letter on behalf of the Controller while approving the modified booklet. The printers were asked to ensure the supply after printing the allotted work. On 28.3.2008 another letter was written that the time limit fixed was already over so rest of the work may be completed till 31.3.2008. After 31.3.2008 no booklets shall be accepted. The decision dated 28.3.2008 was questioned by filing writ petitions. Said writ petition filed by M/s. Ruchi Printers had been allowed by Single Bench.
Writ appeal thereagainst has been dismissed.
Finding of the Court:
Impugned judgment is not sustainable.
Result: Appeal allowed.
JUDGMENT :
Arun Mishra, J.
1. Leave granted.
2. The State has preferred the appeal as against the judgment and order passed by the High Court of M.P. in the writ appeal and the writ petitions decided by a common order dated 4.9.2012 dismissing the writ appeal and allowing the petitions, thereby directing the State Government to accept all materials which was ready for delivery on 22.5.2008 and quashing order dated 30.1.2009 cancelling the communication dated 22.5.2008. Further direction has been issued to make payment to the printers as per the terms and conditions of the order dated 16.1.2008 read with order dated 25.2.2008.
3. Facts in short referred to from SLP [C] No. 32730/2013 – State of M.P. & Ors. v. M/s. Ruchi Printers indicate that the State Printing & Writing Articles Department of Madhya Pradesh through its Controller, invited quotations vide letter dated 2.1.2008 for printing Bhu-Adhikar and Rin Pustikas. On 16.1.2008 printing order was placed with M/s. Ruchi Printers for supply of 37,07,726 copies of Bhu-Adhikar and Rin Pustika. At least half of the booklets were to be supplied in the first lot till 8.2.2008 and the rest were to be supplied before 25.2.2008. On 25.2.2008 the Deputy Controller wrote a letter on behalf of the Controller while approving the modified booklet. The printers were asked to ensure the supply after printing the allotted work. On 28.3.2008 another letter was written that the time limit fixed was already over so rest of the work may be completed till 31.3.2008. After 31.3.2008 no booklets shall be accepted. The decision dated 28.3.2008 was questioned by filing writ petitions. Said writ petition filed by M/s. Ruchi Printers had been allowed by Single Bench vide common judgment and order dated 6.11.2008. State was directed to accept the supply of 10.75 lakhs of Rin Pustikas from M/s. Ruchi Printers and to make payment in accordance with the terms and conditions of the contract. In another W.P. No. 10319/2008 decided by same order, the single Bench asked the petitioner to approach the State Government and the Government to consider the claim in respect of the materials already supplied and to settle the claim if not already settled. No other relief was given.
4. Aggrieved by the order passed in the case of Ruchi Printers, State preferred a writ appeal which was heard and decided with writ petitions by impugned common order.
5. It was submitted on behalf of learned counsel appearing on behalf of the State that the High Court has erred in law in allowing the writ petitions and dismissing the writ appeal. As per the initial order, booklets were required to be supplied by 25.2.2008. Time was essence of contract. Though time was extended but it was made clear that after 31.3.2008 no such booklets will be accepted, later on its format had been changed for the subsequent year as such they were of no use to the State. The payment was required to be made only on account of booklets which were supplied till 31.3.2008. Letter dated 22.5.2008 was cancelled by the State Government on 30.1.2009 and supply after 31.3.2008 had not been accepted as it was of no use due to change of format. The writ petition could not be said to be an appropriate remedy for claiming the amount in case of non-statutory contract. The High Court has erred in directing the State Government to accept the booklets printed till 22.5.2008.
6. Learned counsel appearing on behalf of the respondents has supported the impugned judgment and orders passed by the High Court and has submitted that in the writ petition filed by Ruchi Printers, order had been passed by Single Bench on 6.11.2008 to make payment within three months as per the communication dated 22.5.2008. Thus there was no justification to recall the communication dated 22.5.2008 by issuance of letter dated 30.1.2009. As the booklets had been printed the High Court had rightly directed to accept the supply. Thus no case for interference is made out.
7. After hearing learned counsel for th