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

2014 Supreme(All) 3417

ALLAHABAD HIGH COURT
Anil Kumar, J.
Suchi Enterprises - Appellant
Versus
Union of India and Ors. - Respondent
Second Appeal No. 948 of 2014
Decided On : 27-08-2014

Advocates Appeared:
For the Appellant : S.M.A. Naqvi

The grant of specific performance of a contract is not an absolute right and depends on the discretion of the Court, and the Court will not grant specific performance if it would be ineffectual or not beneficial to the plaintiff.

Headnote:

Specific Relief Act - Debarment of registered supplier - Section 14, Section 41(e)

Fact of the Case:

The appellant, a registered supplier, was debarred from placing orders due to alleged business relations with a blacklisted firm. The lower courts dismissed the appellant's suit, leading to the present second appeal.

Finding of the Court:

The Court found that the appellant's right to tender for supply of materials was not absolute and was subject to discretion. The Court cited provisions of the Specific Relief Act, emphasizing that specific performance of a contract is not a matter of absolute right and depends on the mutuality of obligations and remedy.

Issues: The main issue was whether the debarment of the appellant was legal and whether the appellant had a right to claim a tender for supply of materials.

Ratio Decidendi: The Court held that the grant of specific performance of a contract is not an absolute right and depends on the discretion of the Court. The Court also emphasized that a decree for specific performance will not be granted if it would be ineffectual or not beneficial to the plaintiff.

Final Decision: The Court dismissed the second appeal, stating that no substantial question of law was involved and that the judgment and decree under challenge were valid and did not require interference.

JUDGMENT

Anil Kumar, J.

1. Heard learned Counsel for the appellant and perused the record. Facts in brief of the present case appeal are that M/s. Suchi Enterprises (hereinafter referred to as a firm) is a proprietorship firm, engaged in the business for supply of materials to the Government Department and other private sectors having its registered office at 4/284 Parvati Bagla Road, Flat No. 504 Navsheel Sadan Kanpur Nagar (herein after referred to as the Factory). Firm is also registered with the Ordinance Equipment Factory Kanpur, allotted the Code No. S-01010000 in the year 1985-86. Since then, giving the supply of the items against the tender issued by the factory.

2. On 9.4.2009, Ordinance Equipment Factory, Kanpur had not issued the tender to the plaintiff/appellant whereas issued to the other firms for supply of the materials/items. In this regard, the grievance has been raised, but no heed paid, so the plaintiff/appellant for redressal of his grievances, filed Original Suit No. 405 of 2010.

3. After exchanged of the pleadings between the parties as well as documentary/oral evidence, the Trial Court, dismissed the suit by judgment and decree dated 26.3.2012. Thereafter, Civil Appeal No. 68 of 2012, filed by the firm also dismissed by judgment and decree dated 11.7.2014 by Appellate Court/Additional District and Sessions Judge, Court No. 24, Kanpur Nagar.

4. Accordingly, the present second appeal has been filed by the plaintiff-appellant, pressed on the following substantial question of law:

"Whether the department/organization can debar/restrain its bona fide registered supplier from the placing of an order on the ground that the registered bona fide supplier is having a business relation with a firm/organization who have been allegedly black listed by the department/organization concerned?"

5. Learned counsel for the appellant argued that the firm is registered with Ordinance Equipment Factory Kanpur and supplying the material as per the tender issued. However, without any justification or reason w.e.f. 9.4.2009, the factory has stopped issuing of tender to the plaintiff. As per direction issued by the Factory Board, Kolkata, the tender has not been issued to the appellant because firm is having business relation with M/s. Anurag Trading Company who has been black listed, the said action is wholly illegal and arbitrary in nature, categorically brought before the Courts below, but without taking into consideration the said facts, the Courts below have passed the judgments and decrees against the plaintiff/appellant, so liable to be set aside.

6. I have heard learned counsel for the appellant and perused the record.

7. In order to decide the controversy involved in the present case, I feel appropriate go through the provisions as provided under section 14 as well as section41(e) of the Specific Relief Act relevant portion quoted herein below:

"Section 14--(1) The following contracts cannot be specifically enforced, namely:

(a) a contract for the non-performance of which compensation in money is an adequate relief;

(b) a contract which runs into such minute or numerous details or which is so dependent on the personal qualifications or volition of the parties, or otherwise from its nature is such, that the Court cannot enforce specific performance of its material terms;

(c) a contract which is in its nature determinable;

(d) a contract the performance of which involves the performance of a continuous duty which the Court cannot supervise.

Section 41 (e)--to prevent the breach of a contract the performance of which would not be specifically enforced."

8. As per the said provisions, the grant of specific performance of a contract is not a matter of absolute right in the parties demanding. It is said to be a matter of grace and application for such relief is addressed to the sound discretion of the Court. The right to specific performance depends on the mutuality of obligations and of remedy.

9. A decree for specific performance of contr















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