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ROBIN PHUKAN
Mahams Enterprises, Represented By Its Constituted Attorney Sri Yagindar Yadav – Appellant
Versus
State Of A. P. , represented by the Secretary, Deptt. Of UD and Housing, Govt. Of AP, Itanagar – Respondent
JUDGMENT :
1. Heard Mr. A. Dasgupta, learned counsel for the petitioner and also heard Mr. P. Taffo, learned standing counsel (Urban Development Department) for respondent Nos. 2, 3, 4, & 6 and also heard Mr. Y. Riram, learned Junior Government Advocate for respondent Nos. 1 & 5.
2. In this writ petition, under Article 226 of the Constitution of India, the petitioner has put to challenge the order dated 30.03.2015, issued by the respondent No.3 rescinding the contract of construction of Guest House and Staff Quarter at Khonsa, and also for issuing direction to the respondent authority for measuring the work done and the additional work done by him and to direct the respondent authority to make payment for the same.
3. The factual background leading to filing of the present petition is briefly stated as under:-
The court upheld the administrative decision to terminate a contract for delay in completion due to the petitioner's failure to adhere to the agreement terms.
Failure to comply with the terms of a construction agreement can justify termination and forfeiture of deposits, and courts should exercise restraint in interfering with administrative decisions.
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.
Judicial review in contractual matters is permitted if state actions are arbitrary, but existing arbitration clauses must be respected as alternate dispute resolutions.
The main legal point established in the judgment is that the conclusion of a contract can occur upon the award of work, and non-compliance with tender and contract terms can justify contract terminat....
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