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KARDAK ETE
TNS Express Pvt. Ltd. – Appellant
Versus
Union of India through the Ministry of Railways, New Delhi – Respondent
JUDGMENT :
KARDAK ETE, J.
1. Heard Mr. N.N.B. Choudhury, learned counsel for the petitioner. Also heard Ms. B. Sarma, learned CGC appearing for the respondents.
2. By filing this petition, the petitioner has challenged the letter of termination dated 17.03.2022 issued by the Divisional Railway Manager (Commercial), Lumding, N.F. Railway, by which, a leasing contract of one 23 tone Parcel Van by train No. 15601/02 (14037/38) Poorvottar Sampark Kanti Express, Silchar-New Delhi-Silchar (Ex. SCL-NDLS-SCL) on round trip basis for 5 (five) years has been terminated and the security deposit of the petitioner forfeited with immediate effect.
3. The case of the petitioner, in brief, is that upon the tender process vide tender Notification No. C/03/2018 dated 23.03.2018, the railway authorities accepted the tender offered by the petitioner vide letter of allotment dated 27.06.2018 for leasing of One 23 tone Parcel Van by train No. 15601/02 (14037/38) Poorvottar Sampark Kanti Express, Silchar-New Delhi-Silchar (Ex. SCL-NDLS-SCL) and the same was accepted at Rs. 300701/- per round per VP for a period of 5 (five) years in terms of the arrangement contained therein. Subsequent thereto, a contract ag
The court established that termination of a lease contract without proper notice violates principles of natural justice and contractual obligations.
Clause 8(a) stipulates that the commencement of loading has to be done within 15 days from the date of allotment of the contract.
The court affirmed that failure to commence loading within the stipulated time justified contract termination and forfeiture of the security deposit.
The determination of the Lease Agreement's nature and the establishment of a prima facie case for restraining the respondent from acting on the Termination Notice were central legal points in the jud....
The court established that a party can terminate a contract without notice if the other party fails to comply with payment obligations over consecutive periods as stipulated in the agreement.
The termination of a contract was deemed arbitrary due to non-consideration of the contractor's representations, violating the principles of natural justice.
Termination of a license without a show cause notice or consideration of refundable fees violates natural justice and judicial directives.
Contractual termination notice must be issued by the authorized Railway Administration, adhering to principles of natural justice.
The ruling establishes that COVID-19 lockdown constituted a Force Majeure event, justifying non-payment of rent and validating lease termination under specified contractual terms.
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