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SANJEEV SACHDEVA
Neptune India Ltd – Appellant
Versus
New Delhi Municipal Council – Respondent
JUDGMENT
Sanjeev Sachdeva, J. - Petitioner seeks a restraint on the respondent from terminating agreement dated 09.08.2017 for not furnishing the performance guarantee. Further petitioner seeks a restraint on the respondent from recovering the license fee for the month June-July, 2020 and a reduced license fee for the period August, 2020 to December, 2020 and to adjust the encashed performance guarantees against the outstanding amount payable.
2. Petitioner had submitted a bid for being appointed as a concessionaire for design, development, implementation, operation and maintenance of smart parking solution for on street, off street and indoor parking spaces in NDMC area on Public Private Partnership model. On 10.07.2017 letter of acceptance of tender was issued to the petitioner. As per the petitioner there were certain shortages of equivalent car space allotted to the petitioner than what was tendered.
3. As per the terms of the agreement petitioner had to pay 61% of the gross revenue or Rs.75 lakhs per month whichever is higher which was liable to be increased periodically and accordingly on 01.07.2019 it became Rs.76,85,985/-.
4. Disputes have arisen between the parties. As per th
Compensation is an adequate relief for non-performance of a contract, and no injunction can be issued preventing termination of a license.
In case the site is required by the Licensor for its own or public purposes, the Licencee shall have to hand over the vacant possession of the site at once.
The court established that performance guarantees must be released upon contract expiration unless justified by established liabilities.
A force majeure clause may apply to contract obligations if unforeseen circumstances, such as a pandemic, prevent performance, potentially allowing for reductions in contractual fees.
The performance guarantee must be calculated by excluding the starting date from the timeline, validating the contract and reversing its termination.
Point of Law :Railways has rightly exercised its power under the terms of the contract, in terms of the tender clauses as well as in terms of the letter of acceptance which is treated as legal and en....
The main legal point established in the judgment is the application of the General Clauses Act, 1897, Section 9, in excluding the day of the date when calculating the period for performing an act fro....
Courts may allow reasonable time for fulfilling contractual obligations when adverse financial conditions are presented, while ensuring contractual terms remain enforceable.
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