Where a State authority acknowledges in its internal records that contractual non-performance is caused by force majeure conditions, subsequent termination of the contract and imposition of penalties for the same non-performance is arbitrary, unreasonable, and subject to judicial review under Article 14 of the Constitution.

Order :

Sunil Beniwal, J.

1. The present writ petition has been filed aggrieved by the order/communication dated 24.12.2023 (Annexure-38) issued by Rajasthan State Mines and Minerals Ltd. (‘RSMML’), whereby the tender contract relating to “Loading of limestone gitti of various sizes into tippers/dumpers from crusher hopper(s) and/or different stacks lying at the company's Sanu mines, District Jaisalmer, its transportation from the mines to the railway siding at Sanu Railway Station, and its unloading, stacking, watch & ward, and mechanized loading of limestone gitti into railway wagons using front-end loaders etc.”, which had been awarded to the petitioner, was terminated. Further, the petitioner’s security deposit was forfeited and the petitioner was blacklisted for a period of three years.

2. The brief facts of the case are that RSMML issued a Notice Inviting Tender (‘NIT’) dated 23.03.2023 (Annexure-3) for the aforesaid work. The petitioner participated in the tender process and was declared the L-1 bidder. A Letter of Acceptance was issued in favour of the petitioner on 17.07.2023 and an addendum was issued on 20.07.2023 (Annexure-6 colly). In the said Letter of Acceptance, it was stated that the work would be executed through petitioner’s M/s Jai Tanot Mata Mining and Transportation Co-operative Society, therefore, an agreement dated 16.08.2023 (Annexure-8) was executed between the said Co-operative Society and RSMML with respect to the tender work.

2.1 The tender in question was challenged by M/s PMP Infratech Pvt. Ltd., one of the unsuccessful bidders, by filing S.B. Civil Writ Petition No. 8853/2023. The said writ petition came to be dismissed on 13.07.2023 (Annexure-9). A special appeal, being D.B. Special Appeal Writ No. 666/2023, preferred against the said order, was also dismissed. Although the order was never formally passed, the order passed orally in the special appeal was subsequently challenged before the Apex Court, and vide order dated 10.11.2023 (Annexure-10), the matter was remitted back to this Court on the administrative side as the detailed order had not been uploaded on the website.

2.3 In the meanwhile, the petitioner took steps to initiate the work. However, due to hindrances and obstructions caused by the Jaisalmer Truck and Dumper Association, the work could not be commenced. The petitioner sought assistance from RSMML and also lodged criminal complaints against the said Association. Since no effective progress was made, the petitioner was constrained to approach this Court by filing S.B. Civil Writ Petition No. 14178/2023, which was disposed of vide order dated 27.09.2023 with a direction to decide the petitioner’s representation and to ensure that the lawful transportation fleet of the petitioner was not harmed due to unlawful competition or illegal pressure from any person.

2.4 Since no satisfactory action was taken thereafter, the petitioner filed a contempt petition being S.B. Writ Contempt No. 1248/2023. The said contempt petition came to be dismissed on 21.01.2026 after recording the submission of the respondent/State that the order dated 27.09.2023 had been duly complied with and that a temporary police outpost had been established at Village Sonu to maintain law and order. It was also submitted that the deployed police constables would be responsible