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SHAMPA SARKAR
BPCPL-AND-ARETPL (JV) – Appellant
Versus
Eastern Coalfields Limited – Respondent
JUDGMENT :
1. The petitioners entered into a contract with the Eastern Coalfields Limited. The petitioners have challenged the order dated November 22 2023. By the said order, the contract was terminated. The petitioner no. 1 was banned from the business for a period of two years and penalty was imposed.
2. Mr. Basu, learned advocate appearing on behalf of the petitioners, has assailed the order on the following grounds: -
(b) The order was issued by the Engineer-in-Charge/Agent CL Jambad OC(H) Patch who did not take the hearing. The order was also not authored by the said authority. It was merely a communication on behalf of the management.
(c) The authority, i.e., the Engineer-in-Charge who issued the show cause notice was under an obligation to hear the petitioners and pass necessary orders.
(d) Non-compliance of such procedure was in violation of the principles of natural justice.
(e) The order talks about the unsatisfactory performance of the work, without any details. Such allegation appears to be vague. The factum of breach of the terms and conditions of the contract and how the petitioners had failed to fulfil the provisions of Clause 9 of the contract
The court emphasized the importance of adhering to contractual procedures and the validity of penalties for non-performance, reinforcing the authority's right to terminate contracts under specified c....
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.
The main legal point established in the judgment is the importance of abiding by the dispute resolution mechanism provided in the Agreement for resolving disputes arising from the contract. The Court....
Judicial review in government contracts is limited, ensuring non-arbitrariness, and contract termination on grounds of corruption can occur without pre-notice when grounded in statutory provisions.
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 court found that the appellant had been afforded adequate opportunity to put forth their contentions and that the order 'banning of business' was fully justified under the terms and conditions of....
The court affirmed that principles of natural justice do not apply to non-statutory, purely contractual disputes where parties must adhere to the terms of their contract.
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