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P. B. BAJANTHRI, ARUN KUMAR JHA
B. K. Enterprises, through its Managing Partner, Bipin Kumar, Son of Late Ganpat Chaudhary – Appellant
Versus
State of Bihar – Respondent
JUDGMENT :
ARUN KUMAR JHA, J.
Heard learned counsel for the respondents. However, none appeared on behalf of the petitioner.
2. In the instant petition, the petitioner is challenging the order contained in letter no.1225 dated 04.02.2016 issued by the Chief Engineer, Bihar State Educational Infrastructure Development Corporation Limited, Patna by which Contract Agreement No.43 SBD of 2011-12 dated 14.03.2013 has been rescinded and the earnest money deposit, security deposit and performance guarantee of the petitioner have been forfeited.
3. Brief facts of the case are that an agreement between the petitioner and the respondents was executed on 14.03.2012 in respect of Group No.USS-06 for construction of Middle School, Tar, Upgraded Middle School, Devchanda and Middle School, Khutaha in the District of Bhojpur and as per the said agreement, the construction was to be completed within 12 months from the date of agreement. The construction work of Middle School, Tar and Upgraded Middle School, Devachanda was started on 25.02.2013 and 18.08.2012, respectively. However, construction work of Middle School, Khutaha was not started due to non-availability of land. When the construction work wa
Failure to comply with the terms of a construction agreement can justify termination and forfeiture of deposits, and courts should exercise restraint in interfering with administrative decisions.
The court upheld the administrative decision to terminate a contract for delay in completion due to the petitioner's failure to adhere to the agreement terms.
The main legal point established in the judgment is that the court upheld the principle of exercising restraint in interfering with administrative decisions and emphasized the importance of abiding b....
The court emphasized that public authority's arbitrary termination of a contract without following due procedures violates principles of fairness and justness, meriting judicial intervention.
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