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

1994 Supreme(All) 686

HIGH COURT OF ALLAHABAD
V.P.Goel, S.C.Mohapatra
STATE OF U P
Versus
BHAGAT RAJA ASSOCIATE
Decided On : 17 October 1994
F. A. P. O. No. 763 of 1994

Advocates Appeared:
A.N.Tripathi, C.K.Rai,

A partnership firm carrying on business for profit cannot be said to have irreparable injury in case of breach of contract, and the balance of convenience lies in favor of the State in development work projects.

Headnote:

CONTRACT - TENDER - CANCELLATION - IRREPARABLE INJURY - TEMPORARY INJUNCTION - CONDITIONS - BALANCE OF CONVENIENCE - PUBLIC INTEREST - DEVELOPMENT WORK - JUDICIAL INTERFERENCE - EXECUTIVE ACTION - MALA FIDES - POLITICAL PRESSURE - DISCLOSURE OF NAMES - FAIR ENQUIRY - PROTECTION OF INDIVIDUAL INTEREST - INTEREST ON EARNEST MONEY - BREACH OF CONTRACT - COMPENSATION.

Fact of the Case:

Plaintiff, a partnership firm carrying on business as a works contractor, submitted the lowest tender for the work of digging and filling of a canal. However, the work order was not issued to the plaintiff, and the tender was canceled. The plaintiff filed a suit for permanent injunction against the defendants, seeking to restrain them from entrusting the work to another contractor.

Finding of the Court:

The court held that the plaintiff had not made out a prima facie case for the grant of a temporary injunction. It found that the plaintiff had not suffered irreparable injury, as it could claim damages for breach of contract. The court also held that the balance of convenience lay in favor of the defendants, as the digging of the canal was a development work of the State and any interference by judicial direction would delay the project.

Issues: 1. Whether the plaintiff had suffered irreparable injury due to the cancellation of the tender. 2. Whether the balance of convenience lay in favor of the plaintiff or the defendants. 3. Whether the court should interfere with the executive action of the defendants in canceling the tender.

Ratio Decidendi: 1. The court held that the plaintiff had not suffered irreparable injury, as it could claim damages for breach of contract. It noted that a partnership firm carrying on business for profit cannot be said to have irreparable injury in case of breach of contract. 2. The court held that the balance of convenience lay in favor of the defendants, as the digging of the canal was a development work of the State and any interference by judicial direction would delay the project. 3. The court held that it should not interfere with the executive action of the defendants in canceling the tender, as it was a fair and impartial decision taken in the best interest of the State.

Final Decision: The court reversed the trial court's order granting a temporary injunction against the defendants. It allowed the appeal and rejected the plaintiff's application for temporary injunction.

S. C. MOHAPATRA, J.

This is an appeal by defendants against an order of temporary injunction against them in a suit for permanent injunction.

2. Plaintiff is a partnership firm carrying on business as works con tractor. Pursuant to invitation of tender in June, 1993, it submitted a tender for the work of digging and filling of lower Rajghat canal. Plaintiff deposited the required earnest money and on opening of tender on 24-7-1993, it was found to have offered the lowest rate. When plaintiff was not given the work order, it has filed the suit for permanent injunction against defendants. Contractor carrying on business for profit maximum, plaintiff has lost some profit on account of breach of contract. He cannot claim damages and, accordingly, a partnership firm carrying on business of work on contract can not be said to have irreparable injury in case there is breach of contract as claimed by plaintiff.

3. Case of defendants is that on 24-7-1993 itself tender was cancelled and there is no scope for issue of work order to plaintiff.

4. Execution of work with profit motive is a contract. In case after inviting offers from intending person, such offer is not accepted, person suffer ing may be entitled to a damages. We fail to appreciate how the authority inviting tender can be compelled to accept the offer and permit plaintiff to work.

5. When offers are invited, person offering does not know that his offer would be accepted. There may be circumstances, when even the lowest tender may not be accepted. Therefore, normally in matter of contract where a person carries on business for profit, temporary injunction either not to entrust the work to another or to entrust the same should not be granted unless strong exceptional case is made out in support of irreparable injury. This is not such a case and learned trial Judge has not kept the principle in mind for which impugned order has become vulnerable.

6. Perusal of the plaint discloses that plaintiff has asserted mala fides against some officers and has also alleged political pressure not to allot the work to it. There can be no iota of doubt that executive action is to be fair and impartial in best interest of the State. If the plaintiff would have disclos ed name of the persons who acted with mala fides and in case plaintiff would have disclosed names of person who put political pressure and names of persons on whom political pressure was put, we would have directed a specific issue being settled in the suit so that partner of the plaintiff and other witnesses who would have stated facts on oath, would have faced prosecution in case learned trial Judge would have found the oath to be misutilised. Similarly, State Government which has no living mind and which acts through individual could proceeded against those officers departmentally for ill-reputing a democratic State Government by their mala fides and succumbing to political pressure if learned trial Judge would have accepted statements on oath. In case, executive Government is desirous of a clean administration for the people, of the people and by the people, we hope that partners of plaintiff shall be called upon to disclose facts within their knowledge on basis of which fair enquiry should be conducted to bring the offenders book be they Govern ment officials or plaintiff.

7. Opinion of the District Government Counsel (Civil) has been pro duced in this case. Under what circumstances between communication between lawyer and his client is produced, requires probe and those whose have advised to produce such document in court should be called upon to explain to the State Government justifying their advice, Authorities should keep in mind that a stitch in time saves nine.

8. All courts should keep in mind that judiciary is not a superior executive sitting in appeal against executive action. Learned trial Judge has not kept in mind that digging of canal is a development executive action for benefit of rate payers. Any interferenc







Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

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