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IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM & ARUNACHAL PRADESH)
KARDAK ETE
Larua Samabai Samiti Limited – Appellant
Versus
State of Assam – Respondent
JUDGMENT :
KARDAK ETE, J.
1. Heard Mr. K. K. Mahanta, learned Senior Counsel, assisted by Ms. N. Begum, learned counsel for the petitioner. Also heard Mr. B. J. Talukdar, learned Senior Counsel and Addl. Sr, Govt. Advocate, assisted by Mr. P. K. Medhi, learned counsel for the respondents.
2. The challenge made in the present writ petition is to the order dated 26.06.2023 passed by the Deputy Commissioner, Dibrugarh, by which, Food Grains/Rice Transportation Agreement dated 09.02.2018 is terminated and the security deposit furnished by the petitioner in respect of the transport contract is forfeited for alleged commission of malpractices and for breach of the terms of the transport contract agreement.
3. The petitioner is a registered Co-operative Society under the Assam Cooperative Society Act, 1949, having its office at Lepetkatta, near Ashapur Notun Gaon in the District of Dibrugarh Assam, and is engaged in the business of transportation of goods.
4. The case in brief is that the petitioner was selected as Transporter vide order dated 10.01.2018 pursuant to the NIT dated 18.02.2016 for handling and transportation of rice under the National Food Security Act, 2013 (hereinafter referred
Termination of transport agreements requires clear evidence of malpractices; suspicion alone is insufficient for legal actions.
The judgment establishes that the exercise of unfettered discretion by the Authorities, without complying with the Principles of Natural Justice, renders their decision illegal and subject to judicia....
Justification for issuing the impugned order cannot be permitted to be raised in the counter affidavit.
The withholding of security deposits and unpaid transportation charges by the corporation was illegitimate due to the lack of forfeiture orders and the termination of the E.C. Case against the contra....
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.
Contract cancellation under public distribution laws justified by evidence of diversion and black market intent, despite claims of procedural irregularities.
The obligation of the state to act fairly and reasonably in contractual disputes, and the importance of respecting the specific terms of a contract.
The issuance of a No Demand Certificate validly discharged the contract, and subsequent demands by the Food Corporation of India were arbitrary and illegal.
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....
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