IN THE HIGH COURT OF KERALA AT ERNAKULAM
C.T.Ravikumar, K.Haripal, JJ.
G.Harikumar – Petitioner
Versus
The Travancore Devaswom Board And Ors. – Respondents
WP(C).No.27395 OF 2020(Y)
Decided On : 18-12-2020
Constitution of India-Article 12;; The Contract Act, 1872 –Section 56Express terms of contract cannot be ignored on a vague plea of equity, that risks associated with a contract have to be borne by the parties- Alteration of circumstances does not lead to frustration of a contract- Courts cannot generally absolve performance of a contract either because it has become onerous or due to an unforeseen turn of events. Doctrine of frustration has to be applied narrowly
Statement of facts:
Petitioner is a businessman and also a devotee of Lord Sree Mahadeva of Ettumanoor. He is the successful bidder in the tender floated by the respondents for auctioning the right to sell pooja items at Ettumanoor devaswom in Ettumanoor group, for the financial year 20202021. His tender for Rs.2,34,56,789/-was accepted.
Finding of the court:
Due to the flood in 2018 there was a sharp fall in the number of pilgrims to Sabarimala, which had adversely affected the interests of contractors who had bid to supply goods and services. But, 2019 was a period of windfall for them. For the reason that contractors could reap good profit during a season do not bind them to pay any additional amount to the Board- Bidders cannot be permitted to beat a retreat to their convenience whenever unfavourable turn of events takes place-
Result: Writ Petition Dismissed
JUDGMENT :
Haripal, J.
Petitioner is a businessman and also a devotee of Lord Sree Mahadeva of Ettumanoor. He is the successful bidder in the tender floated by the respondents for auctioning the right to sell pooja items at Ettumanoor devaswom in Ettumanoor group, for the financial year 20202021. His tender for Rs.2,34,56,789/-was accepted. Immediately after accepting the bid, he remitted 50% of the amount, i.e. Rs.1,17,28,395/-, on 20.03.2020. According to him, he started procuring oil and such other pooja articles spending huge amount for selling the items. But due to the outbreak of Covid-19, complete lock down was declared on 24.03.2020 which was extended till 31.05.2020. Even though lock down was lifted from 31.05.2020, devotees were not allowed to enter temples till 16.08.2020. As per the tender conditions, he could sell pooja articles with effect from 01.04.2020. Entry of devotees in temples was regulated from 17.08.2020 strictly adhering to Covid-19 protocol. That means, only few devotees were allowed to enter the temple. Ettumanoor temple is one of the famous temples of Lord Siva, where 'enna vazhipadu', offering of oil, is very important. In normal days an average 40-50 cans of oil are needed for the offering, but due to the restrictions, only 5-6 cans are sold. As per the tender conditions he had to remit the balance amount in two instalments, on 30.04.2020 and 31.07.2020. Due to the lock down and subsequent regulations he could not commence selling pooja items so that he gave Exts.P2 and P3 representations stating that he is suffering an average loss of Rs.30 lakhs a month. Thus he approached for waiving the tender amount for a month and also sought time for remitting the next instalment. From 01.04.2020 to 16.08.2020 even for a single day he could not do any business. But ignoring the adverse circumstances, through Ext.P4 notice, he has been asked to remit the balance two instalments. The respondents are fully aware that the petitioner could not do any business till 16.08.2020. In the light of the spread of the pandemic and the consequent uncertainties in the society, performance of the contract had become impossible. Due to restricted entry of devotees in the temples, the petitioner is not doing any business as expected and thus it has become necessary for him to move the respondents to take a lenient and pragmatic approach. Thus he made Exts.P5 and P6 representations before the respondents requesting to reduce the instalment amounts and also to enlarge time to remit such reduced amounts. He has also sought for extension of the tender period for the next financial year. But it is understood that the respondents are taking hasty steps to proceed against the petitioner and that made him to approach this Court under Article 226 of the Constitution of India, seeking the following reliefs:-
“i. To call for the records leading to Exhibit P4 notice and to quash the same by issuing a writ of certiorari or any other writ, order or direction.
ii. To declare that the petitioner is entitled to have a rework of the terms and conditions of the contract, as seen concluded in Ext.P1, in view of the Covid-19 Pandemic situation, which would amount to a factor of the nature of vis major (act of god), and thus entitled to be considered for waiver/reduction of licence fees, for the period during which the temple in question was not allowed to be opened for the devotees, with rigid restrictions, which includes the period from 01.04.2020 to 16.08.2020 and thereafter, and also for proportionate reduction of the licence fee payable during the period when only restrictive entry was allowed to the devotees into the temple, and also for enlargement of the period of licence, to take within its fold, next financial year also.
iii. To declare that the petitioner is entitled for extension of licence period for selling pooja items in Ettumanoor Sree Mahadeva Temple for the next financial year also as the existing licence terms could not be performed
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