IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
DARSHAN SINGH, J.
Balwinder Singh - Appellant
Versus
State of Punjab and others - Respondents
R.S.A. No. 1559 of 2012 (O&M)
Decided On : 09-08-2016
Doctrine of frustration - Contract - Indian Contract Act, 1872 - Section 56
Fact of the Case:
The plaintiff filed a suit seeking declaration that the mining contract had become impossible and impracticable due to illegal mining by mafia, and therefore, the defendants were not entitled to recover the amount from the plaintiff.
Finding of the Court:
The court found that the Doctrine of frustration as provided under Section 56 of the Indian Contract Act, 1872 did not apply as the circumstances did not render the contract impossible to invite the application of the Doctrine of frustration.
Issues: The issues included the effect of illegal mining on the contract, the applicability of the principle of res judicata, and the jurisdiction of the Civil Court.
Ratio Decidendi: The court held that the Doctrine of frustration did not apply as the circumstances did not strike at the very root of the object and purpose for which the parties had entered into the contract.
Final Decision: The appeal was dismissed as it was devoid of merits.
Darshan Singh, J.
The present appeal has been preferred by appellant-plaintiff against the judgment and decree dated 21.11.2011 passed by learned Additional District Judge (Adhoc) Fast Track Court, Amritsar, vide which the appeal filed by him against the judgment and decree dated 22.07.2008 passed by the learned Civil Judge (Jr. Division), Amritsar has been dismissed.
2. For the sake of convenience, the status of the parties is being mentioned as in the original suit.
3. Plaintiff-appellant has filed the suit for declaration that the contract date 18.04.2002 granted by the respondents-defendants for carrying out the mining operation (Excavating sand) out of the area of villages Chaharpur, Bhagupur Bet, Daryamusa, Malikpur, Chak Fateh Khan, Bhindi Saida, Ponga, Mudferpur and Bhindi Aulakh Khurd has become impossible and impracticable due to illegal mining being carried out by mafia and is hit by Doctrine of frustration. As such, the defendants-respondents are not entitled to recover Rs. 27 lacs with interest from the plaintiff. The plaintiff-appellant has also sought the relief of mandatory injunction directing the defendants to return the amount of Rs. 23,05,000/- deposited by him with the defendants. In the consequential relief, the decree for permanent injunction has also been sought restraining the defendants from recovering the amount of Rs. 27 lacs on the basis of letter dated 06.08.2003.
4. As per the averments in the plaint, the respondents-defendants conducted open auction for quarrying rights of the villages as mentioned in the head note of the plaint on 09.04.2002. The plaintiff was the highest bidder and was granted the contract for excavating the sand out of the quarries situated in those villages w.e.f. 18.04.2002 to 31.03.2005. The total auction money was fixed as Rs. 32 lacs per year. The plaintiff deposited a sum of Rs. 8 lacs at the time of bid as security and Rs. 8 lacs were further deposited as first installment i.e. total Rs. 16 lacs with the defendants. The plaintiff started the job of extracting the sand out of the quarries w.e.f. 18.04.2002. The sand mafia was operating in this area which did not allow the plaintiff to work, as a result of which he submitted various representations to the authorities. He has not been able to do the mining work because of interference of the local mining mafia who was engaged in illegal mining. On 03.06.2002, Sh. Vinod Kumar, Incharge, Mining Check Post Uggar Aulakh, Ajnala, reported the Mining Officer that he had detained 54 trucks and trolleys which were engaged in illegal mining and one Harpartap Singh, Congress leader came to the spot and created a scene. Plaintiffs also filed the writ petition in this Court wherein liberty was given to the plaintiffs to approach the Deputy Commissioner, Amritsar. But, the illegal mining could not be stopped. In-fact, the Punjab Government had no intention to stop the illegal mining which is patronized by highly placed politicians. Thus, the plaintiff was not at fault. Defendants could not stop the illegal mining as such the contract stood frustrated. Hence the suit.
5. Defendants-respondents contested the suit on the grounds inter alia that the General Manager-cum-Mining Officer vide order dated 05.09.2002 created the check post in village Uggar Aulakh and two other check posts in order to stop the illegal extractions. On the further representation made by the plaintiff to the Director of Industries and Commerce, Punjab more check posts were created with police help. Defaulters were challaned and warned by the staff. After that action, the plaintiff did not make any complaint to the Mining Officer. The weighment slips were issued to the plaintiff on demand by the answering defendants, which shows that he was extracting the sand of all the 9 quarries. He had further issued the weighment slips to the trucks and trolleys and the counter foil of the same was collected and checked at Uggar Aulakh Check Post. The plaintiff was informe
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