IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
Sandeep Mehta, Kuldeep Mathur, JJ.
State Of Rajasthan- Appellants
Versus
M/s Balaji Fish Farm Through The Its Authorized Signatory Virendra Singh, S/o Purshottam Singh - Respondents
D.B. Spl. Appl. Writ No. 365 Of 2022
Decided On : 04-11-2022
force majeure - Fishing Lease - Rajasthan Fisheries Rules, 1958 Rule 6(3) - The court discussed the application of force majeure in the context of fishing lease and the consequences of non-deposit of lease amount as per Rule 6(3) of the Rules of 1958.
Fact of the Case:
The respondent firm challenged the cancellation of its fishing license and blacklisting due to non-payment of the lease amount. The court found that the relief granted to the respondent based on force majeure was not pleaded and the terms of the fishing lease were governed by Rule 6(3) of the Rules of 1958.
Finding of the Court:
The court found that the impugned order overturning the decision to cancel the license and blacklist the respondent was arbitrary and unsustainable in the eyes of the law.
Issues: The issues involved the application of force majeure, non-deposit of lease amount, and the consequences as per Rule 6(3) of the Rules of 1958.
Ratio Decidendi: The court held that the relief based on force majeure was not pleaded, and in contractual disputes, the extraordinary remedy of writ under Article 226 or 32 of the Constitution of India cannot be invoked.
Final Decision: The impugned order was reversed, and the appeal was allowed.
JUDGMENT :
(Sandeep Mehta, J.)
1. This intra court appeal has been preferred by the State of Rajasthan for assailing the final order/judgment dated 13.01.2022 passed by the learned Single Bench accepting the writ petition preferred by the respondent firm and directing the appellants to permit the firm to carry out fishing activities in the Jawai Dam upto 31.03.2022. Further direction was given by the learned Single Bench to renew the fishing lease of the respondent-writ petitioner for the years 2022-23 and 2023-24 in terms of the NIT dated 12.03.2019 with periodic increase in the lease amount.
2. Brief facts relevant and essential for the disposal of the appeal are noted hereinbelow :
The State Government issued Tender No.2 dated 12.03.2019 for carrying out fishing activities for the period of five years in various water bodies across the State of Rajasthan including Jawai Dam. It was stipulated in the tender document that the first year’s lease amount would be decided as per the highest financial bid and for the successive years, the fishing leases would be renewed with 12% increase in the lease amount of the previous year. It was further stipulated in the tender document that the successful bidder would have to deposit in advance, ¼th of the lease amount for the following year by 31st January of the current year alongwith security amount and the remaining ¾th of the lease amount would be payable by 15th March of the ongoing year. The said condition of the tender document, which is relevant and germane for deciding the controversy is reproduced hereinbelow for the sake of ready reference :-
3. This condition was incorporated in the tender document as per Rule 6(3) of the Rajasthan Fisheries Rules, 1958 (for short, hereinafter referred to as ‘the Rules of 1958’), which is reproduced hereinbelow for the sake of ready reference :-
4. The respondent firm applied for and was granted the lease for carrying out fishing activities in the Jawai Dam, Pali. It deposited the first installment of the lease amount as per the stipulation in the rule and the tender document. The firm, being the successful bidder was under an obligation to deposit the remaining ¾th of the lease amount by 15.03.2021. However, the firm filed a representation dated 08.01.2021 praying that the time period for payment of lease amount may be extended in wake of the COVID-19 pandemic. Such representation was rejected by the competent authority vide order dated 22.02.2021 and on account of non-payment of the balance ¾th lease amount, fishing license awarded to the respondent firm was cancelled and it was debarred and blacklisted for two years from participating in future tender process vide order dated 07.06.2021. The respondent firm challenged the action of lease termination and blacklisting by filing the subject writ petition before learned Single Bench, which was accepted vide order dated 13.01.2022 with the following directions:-
The court emphasized that in contractual disputes, the extraordinary remedy of writ under Article 226 or 32 of the Constitution of India cannot be invoked.
Respondent authority has no power to make any direct settlement in terms of Rule 12 of Assam Fishery Rules.
The court emphasized the importance of fair and transparent processes in fishery settlement and upheld the decision in the interest of the public exchequer.
The court established that contractual termination and debarment must comply with the specific terms of the agreement and adhere to principles of natural justice.
Arbitrariness in government contract decisions, Need for transparency and official reports in lease extensions
The main legal point established in the judgment is the obligation of parties to present true facts before the court and the consequences of suppressing true facts and suggesting falsehood.
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