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VIJAY BISHNOI, N. UNNI KRISHNAN NAIR
FOOD CORPORATION OF INDIA – Appellant
Versus
HI SPEED LOGISTICS PVT. LTD. – Respondent
JUDGMENT :
N. UNNI KRISHNAN NAIR, J.
1. Heard Mr. K.N. Choudhury, learned senior counsel, assisted by Mr. B.K. Singh, learned counsel for the appellant-Food Corporation of India. Also heard Mr. A.C. Borbora, learned senior counsel, assisted by Ms. N. Dey, learned counsel, appearing on behalf of respondent No. 1 and Mr. R.K.D. Choudhury, learned Dy. SGI, appearing on behalf of respondents No. 2 & 3.
2. The present intra-Court appeal has been so instituted by the appellant-Food Corporation of India, presenting a challenge to an order, dated 08.11.2023, passed by the learned single Judge in WP (C) No. 6317/2022.
3. As projected in the writ appeal; the respondent No. 1 was appointed by the appellant-Food Corporation of India, vide communication, dated 08.11.2021, as a Transport Contractor, Ex-Railway Siding Salchapara Rail Head to FSD, Badarpurghat via Weighbridge including Handling works at FSD Badarpurghat w.e.f. 21.11.2021, for a period of 2(two) years.
4. During the course of the execution of the contract as assigned to the respondent No. 1; the appellant-Food Corporation of India had deducted amounts towards the demurrage charges from the running bills of the respondent No. 1, herein.
Unilateral deductions of demurrage charges from a contractor's bills are impermissible without proper determination of liability as per contractual obligations.
The main legal point established is that unless a contract specifies an agreed amount of damage, any amount claimed by the employer as demurrage does not automatically translate into a debt but remai....
(1) Scope of expression “charges” must be understood as intended by parties to contract – Process of interpretation, though exclusive domain of Court, inheres duty to decipher meaning attributed to c....
Writ petition maintainable for asserting contractual rights against the State or its instrumentalities, Court can interfere in disputed questions of fact or monetary claims if there is an infraction ....
The imposition of Penal Demurrage Charges without adhering to required notice and publicity violates procedural fairness, necessitating recourse to the Railway Claims Tribunal.
The court ruled that claims for damages in breach of contract require proof of actual loss, which was not established by the plaintiffs, leading to dismissal of the appeal.
The contractor is not liable for destination shortages absent sufficient evidence, affirming the court's findings on liability for withheld amounts.
The issuance of a No Demand Certificate validly discharged the contract, and subsequent demands by the Food Corporation of India were arbitrary and illegal.
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