CHHATTISGARH HIGH COURT
P.R. Ramachandra Menon, Parth Prateem Sahu, JJ.
KARAN RAJ DUSEJA - APPELLANT
Versus
STATE OF CHHATTISGARH - RESPONDENT
Writ Petition (Civil) No. 1958 of 2019
Decided On : 26-11-2019
Constitution of India – Article 226 – Contract Act – Section 5 – Extraordinary Jurisdiction – Amount of Compensation – Illegal and Erroneous – Seeking Enforcement of Statutory – Respondents issued an invitation for submission of Expression of Interest for operation, maintenance and management of Conferences cum Seminar Halls, Doctor Lounge, Movie Theater and various Shops situated at D.K.S. Post Graduate Institute and Research Centre, Raipur, Chhattisgarh last date of submission of EOI and opening date of EOI was pursuance to said advertisement of EOI, Petitioner submitted his EOI, in which, he became successful – Petitioner and Respondents entered into contract agreement on conditions as prescribed in EOI document itself – Held, Whether contract envisages actual payment or not is a question of construction of contract term of a contract is violated, ordinarily remedy is not writ petition are also unable to agree with observations of High Court that contractor was seeking enforcement of a statutory contract would not become statutory simply because it is for construction of a public utility and it has been awarded by a statutory body – Dispute arising out of the terms of such contracts or alleged breaches have to be settled by ordinary principles of law of contract one of parties to the agreement is a statutory or public body will not by itself affect principles to be applied disputes about meaning of a covenant in a contract or its enforceability have to be determined according to usual principles of Contract Act – Every act of a statutory body need not necessarily involve an exercise of statutory power – Statutory bodies have power to contract or deal with property – Such activities may not raise any issue of public law present case, it has not been shown how contract is statutory contract between the parties is in the realm of private law not a statutory contract – Appeal dismissed.
JUDGMENT
Parth Prateem Sahu, J. - Challenge in this writ petition is to the letter dated 16.04.2019 issued by Respondent No.2 intimating the cancellation of the agreement executed between the parties.
2. Facts of the case, in nutshell are that, the Respondents issued an invitation for submission of 'Expression of Interest' ('EOI' for short) for operation, maintenance and management of Conferences cum Seminar Halls, Doctor Lounge, Movie Theater and various Shops situated at D.K.S. Post Graduate Institute and Research Centre, Raipur, Chhattisgarh. The last date of submission of EOI was 08.09.2018 and opening date of EOI was 23.08.2018. In pursuance to the said advertisement of EOI, Petitioner submitted his EOI, in which, he became successful. The Petitioner and Respondents entered into contract agreement on the conditions as prescribed in the EOI document itself. Subsequently, on 16.04.2019, Respondent No.2 issued a 'Letter of Intimation' mentioning therein that as per decision taken by the Managing Committee dated 04.02.2019, his agreement will stand cancelled after a period of one month automatically.
3. The aforementioned act of Respondent No.2 made the Petitioner to approach this Court by filing this petition with following relief(s) :
"10.1 This Hon'ble Court may kindly be pleased to quash the order dated 16.04.2019 issued by the Respondent No.2 against the Petitioner; and
10.2 This Hon'ble Court may kindly be pleased to direct the Respondents to return the bank guarantee amounting to five lakhs and also, reimburse the investment made by the Petitioner to the tune of Rs.44,36,643/-, along with the interest; and
10.3 This Hon'ble Court may kindly be pleased to direct the Respondents to adequately compensate the Petitioner for their act of illegal with-holding the due/bank guarantee payable to the Petitioner; and/or
10.4 This Hon'ble Court may also, be pleased to pass any other order in favor of the Petitioner as it may deems fit and proper under the facts and circumstances of the case with cost."
4. Learned counsel for the Petitioner submitted that the period of contract is for three years, but suddenly, the contract agreement has been cancelled within eight months only. He further submitted that during this period, the Petitioner has complied with all the conditions of the contract and also made huge investment for renovating the premises to the tune of Rs.44,36,643/-. He further submitted that Respondents have cancelled the agreement without any rhyme or reason therefore, the order/letter dated 16.04.2019 issued by Respondent No.2 be quashed; bank guarantee amounting to Rs.5 Lacs be returned; an amount to the tune of Rs.44,36,643/- along with interest be returned, and also to pay adequate amount of compensation. He also submitted that action on the part of Respondent No.2 is violative to Articles 14 and 19(1)(g) of the Constitution of India. He lastly submitted that termination of contract has been done without issuing any show cause notice.
5. Per contra, learned counsel for the State/Respondents submitted that Petitioner has violated the conditions of contract as rent of shops for the month from October 2018 to May 2019 has not been paid though there was a clause in the condition as mentioned in the EOI that the rent is to be paid in advance before the 5th day of every month. He further submitted that the submission made by learned counsel for the Petitioner that the Petitioner has made huge investment for construction/ renovation of shops is baseless; firstly, as per the conditions, Petitioner is required to take prior permission of the authorities for raising any construction or making any alteration in the shops or its surroundings as provided in sub-Clause 14 of Clause VIII of the agreement entered into between the parties. In fact, the Petitioner has not made any expenditure for construction/renovation, because Petitioner has not submitted any document to satisfy sub-Clause 14 of Clause VIII so as to prove that p
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