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IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM & ARUNACHAL PRADESH)
RAJESH MAZUMDAR
Ashok Choudhury S/O- Sri Ganesh Choudhury – Appellant
Versus
Union Of India Rep. By The Secretary To The Ministry Of Railways – Respondent
| Table of Content |
|---|
| 1. petitioner challenges contract termination. (Para 2 , 4 , 6 , 7) |
| 2. arguments presented by both parties. (Para 8 , 9 , 10 , 11) |
| 3. court analyzes arbitration clause applicability. (Para 13 , 14 , 15) |
| 4. court finds rescission arbitrary and void. (Para 17 , 18) |
| 5. writ petition allowed, orders for refunds. (Para 19) |
Judgment :
Rajesh Mazumdar, J.
1.Mr. D. P. Borah, learned counsel for the petitioner and Mr. B. Sharma, learned Standing counsel, Railways appearing for the respondent No. 1, 2 & 3 were heard on 05.12.2025 and the judgment was reserved. The matter was listed under the column of ‘to be spoken to’ on 9th of December 2025, and certain clarifications were sought and the matter was fixed for delivery of judgment.
2. The petitioner has preferred this writ petition under Article 226 of the Constitution of India, being aggrieved by the termination notice dated 20.01.2022 issued by the Divisional Engineer/I, N.F Railway, Tinsukia, thereby rescinding the work of “Re-spacing of SC sleeper at Br. No.-561 between BOJ- TSK and Br No. 24 & 30 between SLGR-MRHT Br. No.-14, 24 & 29 between MRHT-DMGN section” and for direction to the respondent authorities not to forfeit the se
The termination of a contract was deemed arbitrary due to non-consideration of the contractor's representations, violating the principles of natural justice.
The court established that termination of a contract must comply with natural justice principles, requiring adequate reasoning and opportunity for the affected party to respond.
Writ under Article 226 not maintainable for contractual termination disputes involving factual questions when arbitration clause exists, natural justice not violated, and no public law issue raised.
Arbitral awards are not subject to interference unless they exhibit patent illegality; the interpretation of contractual obligations falls within the jurisdiction of the Arbitral Tribunal.
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