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IN THE HIGH COURT OF JHARKHAND AT RANCHI
Shree Chandrashekhar, Navneet Kumar
A. K. Builders – Appellant
Versus
State of Jharkhand through the Secretary, Water Resources Department – Respondent
| Table of Content |
|---|
| 1. petitioner challenges arbitrary work stoppage order. (Para 1 , 2) |
| 2. importance of natural justice in contract enforcement. (Para 3 , 4) |
| 3. criteria for contract termination defined. (Para 5 , 8) |
| 4. judicial review limits in contract disputes. (Para 10 , 12 , 13) |
| 5. court quashes arbitrary stoppage and directs payment. (Para 14 , 15 , 16) |
JUDGMENT :
Shree Chandrashekhar, A.C.J.
Aggrieved by the direction contained in the letter dated 15th February 2021 issued by the Executive Engineer requiring M/s A. K. Builders not to continue with the works under Agreement No. SBD-IFB-07/19-20, the petitioner-Firm has approached this Court.
2. In the writ petition, the following prayers have been made:
I. For quashing and setting aside the order as contained in letter no. 58 dated 15.02.2021 (Annexure-8), by the office of Executive Engineer, Irrigation Division, Pakur, respondent no. 5 whereby and whereunder the said respondent has in reference to some oral instructions given by the respondent no. 2 in the most arbitrary and illegal manner has ordered to stop the work in lieu of agreement no. SBD-IFB-07/19-20 till further orders and no order for resumption has been passed only at the i
Arbitrary executive actions lacking jurisdiction in contract matters are void and subject to judicial review under Article 226, ensuring compliance with natural justice.
The court affirmed that principles of natural justice do not apply to non-statutory, purely contractual disputes where parties must adhere to the terms of their contract.
The court established that while state actions in contractual matters must adhere to principles of fairness and reasonableness, arbitrary debarment from future tenders without due process violates co....
The court emphasized that public authority's arbitrary termination of a contract without following due procedures violates principles of fairness and justness, meriting judicial intervention.
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