IMPORTANT POINT
The court established that a party can terminate a contract without notice if the other party fails to comply with payment obligations over consecutive periods as stipulated in the agreement.

JUDGMENT :

Partha Sarathi Sen, J.

1. Challenge in this appeal is the judgement dated 22.12.2020 as passed by the learned Single Bench in WPA 9535 of 2020. By the impugned judgement learned Single Bench allowed the writ petition and thus quashed the decision of the respondent no.2/authority therein to terminate the agreement dated 17.12.2017 between the writ petitioner and the respondent no.2 therein and the notice dated 05.1.2020. The respondent no.2/authority of the said writ petition felt aggrieved and thus preferred the instant appeal.

2. For effective disposal of the instant appeal, the facts leading to initiation of the writ petition is required to be dealt with in a nutshell and those are as follows:-

i. On 17.02.2017 the appellant/authority herein and the private respondent no.1/writ petitioner entered into an agreement.

ii. The agreement was for sale of ‘21se Annapurna’ lunch scheme at the rate of Rs.21/- per plate by using the brand name of ‘Benfish’ of the appellant/authority. The said agreement contains several terms and conditions.

iii. The execution of the deed of agreement between the parties is however not disputed.

iv. According to the appellant/authority the respondent no.1/writ petitioner violated certain terms and conditions of the said agreement and thus a letter dated 26.03.2019 was issued by the appellant/authority.

v. The said letter was duly replied by the respondent no.1/writ petitioner under cover of its reply letter dated 01.04.2019.

vi. Since according to the appellant/authority the grievance as raised under the cover of letter dated 26.03.2019 was not met with by the respondent no.1/writ petitioner, the appellant/authority by its letter dated 30.07.2019 requested the writ petitioner to comply with the terms and conditions of the said agreement in letter and spirit.

vii. According to the appellant/authority the respondent no.1/writ petitioner failed to discharge its obligation in terms of Clauses 6,7,8,22 and 23 of the said agreement and accordingly by issuing a letter dated 05.11.2020 the appellant/authority cancelled and terminated the aforesaid agreement which gave rise to the aforesaid writ petition.

3. In course of his submission learned advocate for the appellant/authority at the very outset draws out attention to the agreement dated 17.02.2017 between the appellant /authority and the respondent no.1/writ petitioner. Attention of ours is also drawn to the various clauses of the terms and conditions of the said agreement more specifically Clauses 6,7,8,13,20 and 22. Drawing attention to the notice dated 26.03.2019, the reply of the respondent no.1/writ petitioner dated 01.04.2019 and the second notice dated 30.07.2019 as issued by the appellant /authority it is submitted on behalf of the appellant that on conjoint perusal of the aforesaid two notices and the reply it would reveal that the respondent no.1/writ petitioner had failed and neglected to deposit monthly fixed and floating amount of sale of product on a quarterly basis within a fortnight on completion of each quarter to the appellant/authority and that apart the respondent/writ petitioner was found to be defaulted in paying the security deposit and further they were found to be using an excess area of the premises of the appellant/authority which was not allotted to them.

4. It is submitted further on behalf of the appellant/authority that from the letter dated 10.04.2019 it would reveal further that the respondent no.1/writ petitioner had not denied any of the allegations of the writ petitioner and on the contrary the respondent no.1/writ petitioner insisted the appellant/authority to extend the time to deposit the contractual amount.

5. Drawing our attention to the letter dated 30.07.2019 it is submitted further that from the said letter it would reveal that despite several request made by the appellant/authority the respondent no.1/writ petitioner paid no heed to the request of the appellant/authority though their outstanding dues reached to th