HIGH COURT OF CALCUTTA
A. K. MUKHERJI, SABYASACHI MUKHERJI
UNION OF INDIA (UOI) - Appellant
Versus
BAIJNATH SARDA - Respondent
Civil Revn. 3939 Of 1965
Decided On : JANUARY 28, 1970
CONSTITUTIONAL LAW - ARTICLE 299(1) - CONTRACT WITH GOVERNMENT - MANDATORY PROVISION - NON-COMPLIANCE - CONTRACT VOID - INJUNCTION - BALANCE OF CONVENIENCE.
Fact of the Case:
The plaintiff, a mine owner, filed a suit against the Union of India and the Chief Operating Superintendent, South Eastern Railway, seeking a permanent injunction restraining the defendants from giving effect to a notice issued by the Railway Administration intimating that the private siding allotted to the plaintiff would be thrown open to the public within six months. The plaintiff claimed that the extension of the siding was made at his own cost and if the said siding is not kept for his exclusive use and possession, his business would suffer.
Finding of the Court:
The court held that the suit was not maintainable because of non-service of notice under Section 80 of the Code of Civil Procedure and in view of the doubtful nature of the plaintiff's case for non-compliance with Article 299(1) of the Constitution of India. The court further held that the plaintiff was not entitled to succeed in obtaining an injunction in the suit, which it appears has already continued over four years.
Issues: 1. Whether the suit is maintainable in view of the absence of notice under Section 80 of the Code of Civil Procedure? 2. Whether there is any formal document executed on behalf of the Union of India in compliance with Article 299(1) of the Constitution of India and if not, what is the consequence thereof in this application?
Ratio Decidendi: 1. The court held that the suit was not maintainable because of non-service of notice under Section 80 of the Code of Civil Procedure. The court relied on the decision of the Judicial Committee of the Privy Council in Bhagchand Dagadusa v. Secy. of State for India in Council, which held that Section 80 of the Code of Civil Procedure applies to all forms of suit and whatever the relief sought including a suit for an injunction. 2. The court held that there was no formal document executed on behalf of the Union of India in compliance with Article 299(1) of the Constitution of India. The court relied on the decisions of the Supreme Court in State of West Bengal v. B. K. Mondal and Sons and Mulamchand v. State of Madhya Pradesh, which held that the provisions of Article 299(1) of the Constitution are mandatory in character and contravention of these provisions nullifies the contracts and makes them void.
Final Decision: The court made the rule absolute and set aside the order of the learned Additional District Judge dated 14th of August, 1965 and restored the order No. 53 dated 18th of June, 1965 of the learned Subordinate Judge, 6th Court, Alipore.
( 1 ) ON the 17th February, 1964 Baijnath Sards, the respondent herein, instituted Title No. 5 of 1964 in the 6th Court of the Subordinate Judge, Alipore against the Union of India and the Chief Operating Superintendent, South Eastern Railway. The plaintiff's case as made in the plaint, is as follows :--The plaintiff is a mine owner and deals in minerals ores which he despatches to various places in and outside India and that he was given a private siding of 200 ft. at Noamundi on the South Eastern Railway for the purpose of handling of Wagons meant for the despatch of his goods. . The plaintiff further stated that on an application being made on or about 8th April, 1959 for an extension of the said siding by at least 1000 ft. or more, the defendants namely, the petitioners herein, had granted an extension by 250 ft. The plaintiff has asserted that the Railway Administration had agreed to extend the said siding by 650 ft. for which the plaintiff deposited necessary costs of preparation of plan and estimate but the said extension had not been granted. On the 19th of August, 1963 the Railway Administration issued a notice upon the plaintiff intimating that the said siding which had been exclusively allotted to the plaintiff would be thrown open to the public within six months from the date of the notice, that is to say, from the 18th February, 1964. The plaintiff has further alleged that the extension of the siding was made at his own cost and if the said siding is not kept for his exclusive use and possession, his business would suffer. Since the Railway did not complete the construction to the extent of 650 ft. the plaintiff claims that the plaintiff is entitled to sue for specific performance of contract and/or damages and he reserved his right to institute a separate proceeding in respect of the same. In the context of the controversy that has to be resolved in the present rule, it is necessary to set out certain averments made in the plaint. Paragraphs 26 and 27 of the plaint are in the following terms :--"26. The defendants' action in serving the said notice and/or in attempting to interfere with the plaintiff's aforesaid right to carry on business by stopping their siding is illegal, ultra vires and not according to law and the said illegal act has caused serious apprehension of invasion of plaintiff's legal rights and the plaintiff submits that unless the said act is restrained by appropriate injunction the plaintiff will suffer irreparable loss and damage. The matter is of very great urgency inasmuch as the loading of the plaintiff's wagons is essential for immediate supply to the ships due to arrive at the Calcutta Port and failure on the part of the Plaintiff would dislocate the entire contracts both inland as well as overseas. 27. That the cause of action for the suit arose on 19-8-63 and day to day thereafter the date on which the defendant No. 2 issued the impugned letter within the jurisdiction of this court at Garden Reach, the principal Office of the defendant No. 1 P. S. Matiaburuz Garden Reach Dist, 24-Parganas. "
( 2 ) ON the basis of the above averments the plaintiff has prayed for decree for permanent injunction restraining the defendants from giving effect to the notice dated 19th August, 1963 and from doing any act in implementation of the said letter dated 19th of August, 1963, for temporary and interim injunction on the lines indicated above and other necessary consequential reliefs.
( 3 ) AFTER the institution of the suit the respondent filed an application on the 16th of February, 1964 under Order 39, Rule 2 of the Code of Civil Procedure for temporary injunction restraining the petitioners from taking over the said siding and/or from throwing open to the public the said siding and also restraining the petitioners from giving effect to the notice dated 19th August, 1963 and from doing any act in implementation of the said notice. The learned Subordinate Judge granted an ex pa
Bai Jilekhabai v, Competent Officer (Evacuee Interest Separation)
Chatturbhui Vithaldas v. Moreshwar Parashram
State of West Bengal v. R.K. Mondal and Sons
Mulamchand v. State of Madhya Pradesh
REFERRED TO : Bhagchand Dagadusa v. Secy. of State for India in Council
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