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IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
DEVASHIS BARUAH
M.S. Latala Construction Co. – Appellant
Versus
Union of India, Rep. by the General Manager Construction, N.F. Railway, Maligaon – Respondent
JUDGMENT :
DEVASHIS BARUAH, J.
1. Heard Ms. M. Sharma, the learned counsel appearing on behalf of the Petitioner and Mr. H. Gupta, the learned CGC appearing on behalf of the Respondent Nos. 1 and 2.
2. The present petition is filed challenging the termination notice dated 04/05.09.2025; seeking directions upon the Respondents to refund the Earnest Money Deposit, the Security Deposit as well as the Bank Guarantee. Further to that, the Petitioner also sought for a relief that the Respondents be also directed to permit the Petitioner to resume the balance work after the withdrawal of the mining ban in accordance with the binding directions of the Supreme Court.
3. It is also seen that in the instant writ petition, the Petitioner has sought for the certain interim reliefs. The same being relevant are reproduced herein under:
“(i) Stay the operation and implementation of the impugned termination notice dated 04/05.09.2025 issued by the Respondent No.2, i.e. the Senior Divisional Engineer/I, Lumding Division, N.F. Railway, pending conclusion of the arbitration proceedings initiated between the parties.
(ii) Restrain the Respondents from taking any coercive or adverse action against the Petitio
The court emphasized that interim relief for disputes under arbitration must be sought through the Arbitration and Conciliation Act rather than through a writ petition.
The termination of a contract was deemed arbitrary due to non-consideration of the contractor's representations, violating the principles of natural justice.
Inordinate delay in challenging contract termination warrants dismissal of the writ petition under Article 226; the court is not required to entertain negligent claims, emphasizing strict adherence t....
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.
The court ruled that disputes arising under a contract with an arbitration clause are not maintainable in writ petitions, emphasizing the arbitration process must be followed for resolution.
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.
Point of Law : Arbitral Tribunal had erred in concluding that the petitioner had abandoned the works, is also unpersuasive. The finding that the petitioner had abandoned the works is a finding of fac....
Disputes arising from contract termination must be resolved through arbitration, not writ jurisdiction, especially when complicated questions of fact are present.
Premature termination of a contract does not grant right to forfeit the security deposit without proof of actual loss, as it constitutes a penalty under the contract law.
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