SANDEEP MEHTA, ARUN DEV CHOUDHURY
Gagan Deal Trade Private Ltd. – Appellant
Versus
Food Corporation Of India – Respondent
JUDGMENT :
A.D. Choudhury, J.
1. Heard Mr. D. Saikia, learned Senior Counsel assisted by Mr. B. Gogoi, learned counsel for the appellant. Also heard Mr. P. K. Roy, learned Senior Counsel assisted by Mr. S. K. Chakraborty, learned counsel for the respondent Nos. 1, 2, 3 and 4 and Mr. R. Chakraborty, learned counsel for the respondent No.5.
2. The present intra court appeal is directed against the judgment and order dated 04.05.2019 passed by the learned Single Judge whereby, the writ petition being WP(C) 5955/2015, preferred by the appellant assailing an action of termination of contract and encashment of bank guarantee, was negated.
3. Pursuant to an NIT dated 10.04.2014 issued by the respondent i.e. Food Corporation of India Limited, The appellant/writ petitioner, was awarded a contract to construct a 50,000 M.T. capacity Non Railways Siding Godown at Village-Ouguri, Kachamari, Nagaon, Assam on Build, Own and Operate basis for a guaranteed period of 10 (ten) years @ Rs.6.93 per Qt. per month. However, alleging occurrence of Force Majeure events, the appellant sought change of site of construction and extension of time. Though, time was extended for a limited period, however, change of
Writ Court in exercise of its extraordinary jurisdiction cannot adjudicate upon disputed questions of fact inasmuch as claim of petitioner regarding occurrence of event leading to a Force Majeure sit....
It is well settled that mere existence of an alternative remedy or an alternative forum does not stand as an impediment on Court to exercise its jurisdiction under Article 226 of Constitution of Indi....
Termination of contracts must adhere to established contractual obligations and procedural requirements; failure to comply with these undermines claims of unreasonableness or arbitrariness in actions....
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....
The existence of an arbitration clause in the agreement does not ipso facto render a writ petition not maintainable. The High Court may still exercise its writ jurisdiction in exceptional circumstanc....
Termination of a contract without issuing a show-cause notice violates the principles of natural justice. Force majeure claims must be decided before taking any action based on non-compliance with th....
Judicial review is permissible in contractual disputes involving public law elements, but the existence of an arbitration clause limits the scope of such review.
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