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A. ABHISHEK REDDY
Green Design and Engineering Services Pvt. Ltd. – Appellant
Versus
Muzaffarpur Smart City Ltd. – Respondent
ORDER
Heard the parties.
2. The present writ petition has been filed for the following relief(s): –
i. To issue a writ/order/ direction in the nature of certiorari for quashing the order bearing No.1130/MSCL dated 17.06.2023 issued under the signature of the Respondent Managing Director- cum- Municipal Commissioner, Muzaffarpur Smart City Ltd by which it has been stated that the Board of Directors of the Company has terminated the Contract with immediate effect and to forfeit the performance security for poor performance and that the petitioner is not entitled to receive any agreed payments under the contract.
ii. To hold and declare that the impugned order of termination etc. dated 17.06.2023 is in violation of natural justice and also wholly without jurisdiction since beyond the terms of the contract. And hence, the petitioner is liable for its balance dues as against the work executed and as such direct the authorities to release the same at the earliest.
iii. To pass ex-parte/ad-interim relief during the pendency of the writ application preventing the authorities from proceeding to forfeit the performance security of the petitioner and or prevent them from encasing the same and not
The court established that termination of a contract must comply with natural justice principles, requiring adequate reasoning and opportunity for the affected party to respond.
Contract termination must strictly follow the procedures outlined in the agreement, ensuring compliance with notice and opportunity to remedy deficiencies.
Termination orders based on misconduct must adhere to natural justice principles, ensuring employees have a fair opportunity to defend themselves.
The judgment established the importance of strict adherence to contract clauses and the interpretation of notice requirements for termination, as well as clarified the applicability of alternative re....
Natural justice principles require an opportunity to be heard before punitive actions are taken, particularly in contract termination cases.
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