SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2024 Supreme(Ori) 80

IN THE HIGH COURT OF ORISSA AT CUTTACK
S.K. PANIGRAHI, J.
Dibakar Sahoo - Petitioner
Versus
The Chief Regional Manager, United Bank of India, Bhubaneswar & Anr. – Respondents 
W.P.(C) No.14545 of 2015 and W.P.(C) No.3660 of 2015
Decided on : 19-04-2024

Advocates Appeared:
For the Petitioner: Mr. Bigyan Kumar Sharma, Adv., Mr. A.U. Senapati, Adv.
For the Respondent: Ms. Namita Pattnaik, Adv., Mr. Gokha Behera, Adv.

Cancellation of bid acceptance is lawful when the selected party fails to execute the requisite contract, reaffirming that non-compliance voids binding obligations.

Headnote:(A) Indian Contract Act, 1872 - Sections pertaining to contract formation and termination - Petitioner challenged the cancellation of acceptance for ATM installation lease - The court held there was no binding contract as the petitioner failed to execute the lease agreement following selection - Cancellation deemed lawful. (Paras 3-11)

(B) Tendering Process - Banks are not bound to proceed with a tender if conditions are not met by the selected bidder - Cancellation of the offer is permissible when contractual obligations are unmet and urgency mandates alternative arrangements. (Paras 4-10)

Facts of the case:
The petitioner applied and was conditionally selected for an ATM installation; however, the subsequent cancellation of this acceptance arose from non-compliance with lease execution by the petitioner.

Findings of Court:
The court found no violation of contractual obligation by the bank, as the petitioner did not fulfill the necessary actions needed to execute the lease agreement.

Issues: The primary legal question addressed was whether the bank's cancellation of the acceptance letter constituted a breach or was lawful due to the petitioner’s inaction.

Ratio Decidendi: The court reiterated that without the execution of a formal lease agreement, the acceptance by the bank remained non-binding, and thus, cancellation was justified as per the banking norms and urgency for site selection.

Result: Both Writ Petitions dismissed.

JUDGMENT

S.K. PANIGRAHI, J.

1. Since common question of facts and law are involved in both the Writ Petitions, the same were heard together and are being disposed of by this common judgment. However, this Court felt it apposite to deal the W.P.(C) No.14545 of 2015 as the leading case for proper adjudication of both the cases.

2. In filing this Writ Petition vide W.P.(C) No.14545 of 2015, the Petitioner has challenged the communication/ order dated 14.05.2015 issued / passed by the Deputy General Manager and the Chief General Manager, United Bank of India/Opposite Party No.1.

I. FACTUAL MATRIX OF THE CASE

3. The concise yet comprehensive factual record of the case, pertaining to the matter at hand, is presented succinctly as follows:

(i) Pursuant to the advertisement dated 24.10.2013 published by the Opposite Party/Bank authorities for installation of the ATM, the present Petitioner on 01.11.2013 submitted his proposal by offering his premises for the above purpose on lease basis. It is pertinent to mention here that through the said advertisement there was requirement of a suitable, ready built and well constructed premises of around 80 Sqft. of land for the above purpose.

(ii) Apart from the Petitioner, four other persons had also submitted their proposals for the above purpose. After considering all the proposals, the Opposite Parties vide its communication dated 16.08.2014 informed the Petitioner about approval of his application by the concerned authority for installation of ATM in his premises. The said communication also indicates the terms and conditions to be incorporated in the agreement.

(iii) In the said communication, the Petitioner was asked to submit his written version, if he is agreeable to accept the terms and conditions for the purpose of execution of the lease agreement. Thereafter, the Petitioner offered his willingness on 18.08.2014 by agreeing to the terms and conditions contained in the letter dated 16.08.2014.

(iv) After offering his willingness, the Petitioner remained hopeful of getting the said allotment. But, in the meantime, the Petitioner got an information from a reliable source that the offer of one Niranjan Sahoo/ the Opposite Party No.3 in W.P.(C) No.3660 of 2015, who was not even the applicant for the above purpose, has been accepted by the Opposite Party/Bank authorities clandestinely.

(v) Soon after getting such information, the Petitioner filed a Writ Petition vide W.P.(C) No.3660 of 2015, which has been heard and going to be disposed of by this common judgment. Thereafter, hearing the Petitioner on admissions of the above noted Writ Petition, this Court vide order dated 02.03.2015 directed for maintenance of status quo in respect of installation of the ATM in question till the next date.

(vi) Thereafter, one Jitendra Kumar Subudhi sought for certain information relating to installation of ATM in village Padmabati pursuant to the advertisement dated 24.10.2013. Accordingly, the Opposite Parties vide letter dated 13.05.2015 informed that four persons namely Dibakar Sahoo i.e. the present Petitioner, Narayan Sahoo, Nirakar Sahoo and Chakradhar Das were the applicants pursuant to the advertisement dated 24.10.2013 for installation of ATM. In the said information it was clearly indicated that the premises of the Petitioner was selected for installation of ATM, but on the next day of disclosure, vide communication dated 14.05.2015, the Opposite Party No.1 cancelled the acceptance letter of the Petitioner dated 18.08.2014. Being aggrieved by the said cancellation, the Petitioner has approached this Court.

II. PETITIONERS SUBMISSIONS

4. Learned counsel for the Petitioner(s) earnestly made the following submissions in support of his contentions:

(i) Challenging such action of the Opposite Parties/Bank authorities the learned counsel for the Petitioner submitted that since the Petitioner had not violated any of the terms and conditions of the offer made by the Opposite Party/Bank authorities, there was no occa

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top