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IN THE HIGH COURT OF JHARKHAND AT RANCHI
M.S. RAMACHANDRA RAO, CJ., DEEPAK ROSHAN
Manoj Kumar Singh, S/o Sri Shama Nand Singh – Appellant
Versus
East Central Railway, through its Divisional Railway Manager – Respondent
JUDGMENT :
M.S. Ramachandra Rao, C.J.
1. In this writ petition, the petitioner has challenged order dt. 19.01.2018 passed by the respondent terminating the contract against tender issued for general work, pipe, sanitary and wood work of Renukoot Sub-Division under Assistant Engineer, EC Railway, Renukoot for Zone No.29.
2. It is not in dispute that the petitioner had participated in a tender dt. 13.06.2017 invited by the respondents for the said work and on 18.10.2017, communication was sent to the petitioner by the Sr. Divisional Engineer of the respondents stating that it is the successful bidder and its bid has been accepted by the competent authority. The said letter asked the petitioner to provide performance guarantee and also make the security deposit. It informed the petitioner that the work is to be completed in all respects within 30th June 2018 and so he should contact the Assistant Engineer, E.C. Railway, Renukoot for obtaining further instructions about the job, start the work immediately and complete it in time. It was further communicated to the petitioner that the letter of acceptance will constitute a binding contract and remain operative till the formal agreement is
Acceptance of a tender constitutes a binding contract, and the absence of a formal agreement does not invalidate the obligations under the tender terms.
Point of Law :Railways has rightly exercised its power under the terms of the contract, in terms of the tender clauses as well as in terms of the letter of acceptance which is treated as legal and en....
The termination of a contract was deemed arbitrary due to non-consideration of the contractor's representations, violating the principles of natural justice.
A contractor must timely communicate any impediments to executing work; failure to do so does not excuse non-performance and justifies forfeiture of earnest money under contract terms.
Government Contract – A Letter of Intent (LoL) merely indicates party’s intention to enter into a contract with other party in future and is not intended to bind either party ultimately to enter into....
Contract termination must consider practical challenges faced by contractors, especially related to local conditions affecting performance.
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