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IN THE HIGH COURT OF ORISSA AT CUTTACK
HARISH TANDON, CJ., MURAHARI SRI RAMAN
Jalaram Transport – Appellant
Versus
Mahanadi Coalfields Limited – Respondent
| Table of Content |
|---|
| 1. demand for penalty after significant delays. (Para 1 , 2) |
| 2. arguments regarding procedural fairness and contract terms. (Para 4 , 5) |
| 3. court analysis on penalties, contract obligations, and natural justice. (Para 6 , 7 , 8) |
| 4. quashing of penalty demand and orders for recovery. (Para 9 , 10) |
JUDGMENT :
HARISH TANDON, CJ.
1. The petitioner challenges the notice of demand dated 12th November, 2023 issued by opposite parties-MCL to recover a sum of Rs.9,15,980.70 from the running contract of the petitioner under NIT-843 dated 25th February, 2022 of Ananta OCP, Jagannath Area on account of penalty.
2. A prelude to the litigation is required to be adumbrated to consider the points raised in the instant litigation. The Notice Inviting Tender (NIT) was floated on 20th March, 2012 for transportation of crushed coal by tippers from feeder breaker of Jagannath colliery to siding I, III and IV of Jagannath Area for a total quantity of 38 lakh Tes. The petitioner was adjudged as the successful bidder and deposited the bank guarantee as earnest money and two further guarantees towards the performance security and the security deposit with opposite party No.1. The period of complet
An authority must adhere to contract terms, including timely communication of penalties and an opportunity to rectify, or face quashing of arbitrary demands.
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