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SANJAY KUMAR MEDHI
MONSUR AHMED S/O NAYEEM UDIN AHMED – Appellant
Versus
STATE OF ASSAM – Respondent
JUDGMENT :
SANJAY KUMAR MEDHI, J.
1. Two connected causes of action have propelled the petitioner to approach this Court under Article 226 of the Constitution of India. The petitioner, who is a contractor, is aggrieved by two aspects, the first being termination of a contract earlier allotted to him and the second being the action to settle the balance part of the work with the private respondent. Apart from contending that the impugned action is unreasonable and arbitrary, the petitioner has alleged mala-fide which, according to the petitioner, vitiates the entire action.
2. Before delving into the issues which have arisen for determination, it would be convenient, if the facts of the case are narrated in brief.
3. Pursuant to a Notice Inviting Tender (NIT), the petitioner, who is a registered PWD contractor, vide order dated 24.01.2019, was allotted the Work of Construction and Maintenance of Anipur-Zamuang NEC Road to Dakhin Rampur in the district of Karimganj. The work was under PMGSY. It is the case of the petitioner that though the work was started and substantial progress was achieved, due to the onslaught of the Covid-19 pandemic, the progress was hampered. According to the pet
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 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.
A party failing to comply with contractual terms may be subject to termination even if claiming force majeure circumstances.
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