Contracts terminable by nature are not specifically enforceable under Sec. 14 of the Specific Relief Act, 1963. Public interest must prevail over private interest, and legal remedies for breach of contract should be sought through civil action or arbitration.

Arijit Banerjee, J.

1. The Gorkhaland Territorial Administration (in short ‘GTA’) issued a Notice Inviting Tender (in short ‘NIT’) dated 20 September, 2013 inviting offers for supply of pipes, specials and joining material to the Public Health Engineering Department (in short ‘PHE’), GTA, Darjeeling for execution of Drinking Water Supply Schemes for different schools and PWS schemes within the GTA area. The total estimated cost of 47 schemes in Darjeeling, Kurseong and Kalimpong divisions was Rs. 53.81 crores. The petitioner company’s bid was found to be the lowest and the same was communicated to it by the PHE department of GTA by a letter dated 20 December, 2013. It was mentioned in the said letter that supply of the said materials shall be made as per the orders issued from the office of the PHE department of GTA from time to time against the sanctioned works. It was also mentioned that the approved rates will remain valid from the date of the said letter till 20 December, 2015. The petitioner company was called upon to execute formal agreement with the PHE department of GTA within seven days. Such a formal agreement was executed on 24 December, 2013.

2. It is not in dispute that the last work order was issued by the respondent authorities on 26 March, 2014. The last supply was made by the petitioner on 12 May, 2016 as would appear from copies of road challans filed in Court by the petitioner company.

3. The petitioners filed WP No. 7136 (W) of 2018 before the learned Single Judge contending that without issuing further work orders pertaining to the remaining work under the aforesaid tender the respondent authorities have issued fresh tender notices relating to supply of materials which were included in the earlier tender. The petitioners prayed for an order restraining the respondents from giving effect to the fresh NITs all dated 16 May, 2018.

4. The Learned Single Judge dismissed the writ petition observing that normally a Writ Court would not interfere in contractual disputes and the authorities have not acted in an arbitrary or unreasonable manner by inviting fresh tenders. Being aggrieved, the writ petitioners are before us by way of the present appeal.

5. Mr. Bikash Ranjan Bhattacharya, learned Sr. Counsel appearing for the appellants submitted that the contract between the parties was for supply of the pipes etc. by the appellant no.1 for completion of the 47 schemes (12 in Darjeeling, 10 in Kurseong and 25 in Kalimpong). Out of the estimated Rs. 53 crores worth of supply, work order had been placed on the appellant no. 1 by the respondent authorities for about Rs. 24 crores worth of materials. The authorities are bound to place work orders for the balance Rs. 28 crores worth of materials for completion of the aforesaid schemes on the appellant no. 1 and cannot indirectly terminate the contract with the appellant no. 1 by issuing fresh NIT in respect of the balance materials.

6. Learned Sr. Counsel referred to a letter dated 26 November, 2015 written by the appellant no. 1 to the Executive Director, PHE Department, GTA, wherein it was stated inter alia as follows:-

“Therefore, you are requested please arrange to issue the balance 50% quantity materials supply orders at the earliest so that materials can be supplied immediately. We would also like to mention here that the new supply orders payment can also be made on availability of fund with the department. Further we would also undertake to supply & delivery of G.I. Pipes and fittings on the same terms and condition as laid down in the NIT No. 01/PHE up to 31st December, 2017.

Hope you will find all above in order and requesting your good self to please arrange to place the balance quantities order at the earliest and obliged.”

7. Mr. Bhattacharya also referred to an internal memo of the respondents dated 31 January, 2014 signed by the Executive Director, PHE