DEVASHIS BARUAH
G. B. Chowdhury Holdings Pvt Ltd – Appellant
Versus
Food Corporation of India – Respondent
JUDGMENT :
DEVASHIS BARUAH, J.
Heard Mr. B. Chakraborty, the learned counsel appearing on behalf of the Petitioner and Mr. P. K. Roy, the learned Senior counsel assisted by Mr. S. K. Chakraborty, the learned counsel appearing on behalf of the Food Corporation of India.
2. The dispute involved in the instant writ petition pertains to the imposition of an amount of Rs.2.11 crores by the Respondent FCI upon the Petitioner and the manner in which the recovery was made from the dues the Petitioner was entitled to in respect to other contracts the Petitioner had with the FCI.
3. The materials on record reveals that a Notice Inviting e-Tender was issued on the 11.03.2015 for transportation of foodgrains/sugar/allied materials from EXRailway Siding FSD Changsari to FCI FSD Tangla via weighbridge (Distance 90 Kms) minimum daily requirement of trucks 20-30 which may increase or decrease as per the exigency of the requirement.
4. The Petitioner herein submitted its tender and was appointed as a Transport Contractor vide an order dated 20.06.2015. The said contract was for a period of two years i.e. from 20.06.2015 to 19.06.2017. The said contract was furth
R.L. Kalathia & Company Vs. the State of Gujarat
R.L. Kalathia & Company Vs. the State of Gujarat, (2011) 2 SCC 400
The issuance of a No Demand Certificate validly discharged the contract, and subsequent demands by the Food Corporation of India were arbitrary and illegal.
Adopting a different view in matter in facts and circumstances of case would not be permissible in eye of law.
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.
Contracts must be honored based on verified terms and conditions; discrepancies in distances stated versus actual must be rectified to uphold contractual integrity.
Contractor had not approached Grievance Redressal Committee and hence, Court, relegated contractor to invoke jurisdiction of Grievance Redressal Committee for ventilating its grievances.
The main legal point established is that in contractual matters, the court may intervene to prevent arbitrariness or favoritism by the government bodies, especially if the actions violate the equalit....
The court emphasized that bureaucratic processes justify leniency in condoning delays in filing appeals, recognizing that good cause is a lesser standard than sufficient cause.
The issue price for recovery under the Model Tender Form cannot be interpreted as dependent on subsidized rates for specific schemes.
Retrospective recovery of amounts by public authorities must adhere to established tender conditions and principles of natural justice.
Retrospective recovery of amounts under an executive order is impermissible without following due process and the principles of natural justice.
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