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SABYASACHI BHATTACHARYYA
Pearl Corporation – Appellant
Versus
West Bengal Police Housing and Infrastructure Development Corporation Ltd. (WBPHIDCL) – Respondent
JUDGMENT :
The Court:- 1. The petitioner has challenged the termination of the petitioner and debarment from participating in the respondent’s contracts for two years.
2. Learned counsel for the petitioner submits that the respondents have acted mala fide and arbitrarily. During pendency of a previous writ petition by the petitioner, against the alleged mala fide action of the respondent’s, the respondents terminated the petitioner’s contract. The previous writ petition thus became infructuous and the same was withdrawn with liberty to file a fresh writ petition on the subsequent cause of action. Accordingly, the present writ petition was filed but during the pendency of the same, the remaining work has been given to a third party.
3. It is argued that the petitioner had substantially done the work under the contract between the parties and, if another extension was given, it would have completed the entire work.
4. It is argued that the petitioner was granted extension twice. As such, time was not the essence of the contract even as per the conduct of the respondents.
5. It is next argued that the termination of contract by the respondents was de hors the contract entered into betw
Termination of contract and debarment of a contractor must be in accordance with the terms of the contract and the principles of natural justice, and the work in question must have a public character....
Blacklisting a contractor without a fair hearing violates principles of natural justice, rendering such actions invalid, while the termination of the contract for non-compliance with security require....
The court established that contractual termination and debarment must comply with the specific terms of the agreement and adhere to principles of natural justice.
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.
The main legal point established in the judgment is that the conclusion of a contract can occur upon the award of work, and non-compliance with tender and contract terms can justify contract terminat....
The court upheld the debarment of the contractor, ruling the action was not arbitrary and justified due to significant breaches impacting public interest, distinguishing it from minor breach preceden....
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