IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
MANISH CHOUDHURY, J.
Kamal Singh Dugar S/o Late Mulchand Dugar – Petitioner
Versus
The Rubber Board and Others – Respondents
W.P. (C) No. 1191 of 2017
Decided On : 10-05-2023
Constitution of India, 1950 - Article 226 - Contract Agreement - Show Cause Notice - Non-disbursal of account bill - Aggrieved by issuance of Show Cause Notice and non-disbursal of petitioner’s running account bill, petitioner has instituted petition seeking setting aside of Show Cause Notice – Held, Show Cause Notice and petitioner’s Reply to Show Cause Notice were followed by Order of Termination, which is made part of counter affidavit filed by respondent - Despite being aware about Order of Termination petitioner has chosen not to challenge same even by filing any pleadings to counter affidavit of respondent - Neither a matter/dispute relating to a concluded and non-statutory contract, like case in hand, can be agitated nor terms and conditions of such a contract can be enforced through writ jurisdiction under Article 226 of Constitution of India - A writ court cannot be a forum to seek any relief based on terms and conditions incorporated in concluded contract by parties, in absence of any public law element - Petition is found not maintainable – Ordered accordingly.
JUDGMENT :
MANISH CHOUDHURY, J.
1. Heard Ms. D. Borgohain, learned counsel for the petitioner and Mr. D. Nath, learned counsel for all the respondents.
2. The background facts leading to the institution of the writ petition under Article 226 of the Constitution of India can be narrated, in brief, as follows:
2.2 According to the respondent Rubber Board authorities, as averred in the counter affidavit, the execution of the Contract-Work got delayed allegedly due to factors attributable solely to the petitioner. With such contentions, the petitioner was served a Show Cause Notice dated 03.01.2017 whereby it was indicated to the petitioner that the respondent Rubber Board was in contemplation to terminate the Contract Agreement dated 28.03.2014, executed between them, with the condition that the respondent Rubber Board would execute the balance part of the Contract-Work at the risk and cost of the petitioner and penalty would be imposed on him as per the tender conditions. By serving the Show Cause Notice dated 03.01.2017, the petitioner was asked to provide his explanation, if any, to the Show Cause Notice within a period of 15 days from the date of receipt of the Show Cause Notice.
2.3 It is the case of the petitioner that in response to the Show Cause Notice, the petitioner submitted a Reply to the Show Cause Notice dated 03.01.2017, on 30.01.2017.
3. Aggrieved by the issuance of the Show Cause Notice and non-disbursal of the petitioner’s running account bill, the petitioner has instituted the instant writ petition seeking setting aside of the Show Cause Notice dated 03.01.2017. Directions in the nature of mandamus are also sought to the respondent Rubber Board authorities to release the running account bill in respect of the portion of works completed by the petitioner in connection with the Contract-Work, as per rates shown by the petitioner including costs for additional works, and to allow the petitioner to complete the balance part of the Contract-Work and to release payment for such works including costs for additional items.
4. On institution of the writ petition, notices were issued to the respondent authorities by Order dated 01.03.2017. While issuing notices, it was observed that it shall not be a bar for the respondent authorities to consider and dispose of the Representation i.e. the Reply to the Show Cause Notice dated 30.01.2017 during the pendency of the writ petition. The respondent Rubber Board authorities have filed their counter affidavit on 20.07.2021 annexing therewith an Order of Termination dated 03.04.2017 [Annexure-3] whereby the respondent Rubber Board authorities had terminated the Contract Agreement dated 28.03.2014 with immediate effect.
5. By the Order of Termination, the petitioner was sought to be apprised that the Contract-Work allotted to him, as per the Contract Agreement dated 28.03.2014, had been terminated with immediate effect. The Earnest Money Deposit [EMD] and the Security Deposit were also forfeited. It had been intimated that the balance part of the Contract-Work would be done at the risk a
The main legal point established in the judgment is that in contractual matters, the court may not entertain a writ petition if there is a public law element, and the parties should resort to the con....
The court emphasized the importance of adhering to contractual procedures and the validity of penalties for non-performance, reinforcing the authority's right to terminate contracts under specified c....
The court established that the Engineer-in-Charge has the authority to determine the contract in cases of delay, inferior workmanship, or failure to complete the work within the stipulated period, an....
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....
Show cause notice must specify all grounds and actions; writ jurisdiction limited where arbitration clause and efficacious remedies exist.
Writ petitions in contractual disputes are generally not maintainable if they involve disputed questions of fact.
A show cause notice does not constitute a final decision; it allows the affected party to respond before any action is taken.
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