JUDGMENT

1. This petition is filed under Article 226 of the Constitution of India questioning the legality, validity and propriety of the order dated 10.11.2020 (Annexure-P/13) whereby the respondents not only forfeited the performance guarantee amounting to Rs.1,91,020/- terminating the work order dated 14.2.2020 but also placed the petitioner/firm in the black list.

2. The said order has been criticized by the petitioner/firm mainly on the ground that it was fault on the part of the respondents not making payment in time and request of the petitioner/firm for making payment in time as per terms and conditions of the agreement has not been given any heed and arbitrarily terminated the work order, forfeited the performance guarantee and black listed the petitioner/firm that too without giving any notice to them.

3. The relevant facts are briefly stated herein to appreciate the rival legal contentions urged on behalf of the parties:

(3.1) That the petitioner is a partnership firm engaged in the business of providing Consultation of Solid Waste Management having good reputation in the field. Respondent No.1/Corporation floated a tender in the month of October, 2019 for appointing the Independent Engineer (IE) for Solid Waste Management Project. The petitioner/firm has participated and being the successful participant awarded the tender for a period of 60 months as per the total tender value of Rs.1,10,10,000/-. The tender agreement is Annexure-P/2 containing terms and conditions. The respondent/Corporation appointed the petitioner/firm as an Independent Engineer for Implementation and Operation and Maintenance of Regional Integrated Solid Waste Management (ISWM) Project, door to door collection, Transportation, Processing in Regional Landfill for District Singrauli.

(3.2) On 14.2.2020, the work order was issued in favour of the petitioner and thereafter, they started to complete the assigned work as per the contract. However, the respondent/Corporation failed to perform the Clause 6.3 (a) (i) of the agreement and not providing the payment of the work done on monthly basis. Clause 2.9.2(a) provides if the Corporation fails to pay the money due to Independent Engineer pursuant to agreement then the IE can terminate the said agreement with prior notice of 30 days to the Corporation. The petitioner/firm repeatedly requested for disbursement of outstanding dues of several running bills but the respondents never give any heed on the said request which compelled the petitioner to decide to terminate the said agreement by invoking Clause 2.9.2 of the agreement. They wrote a letter on 10.12.2020 (Annexure-P/6) asking termination of contract. The respondent/Corporation thereafter acted arbitrarily pointing out the shortcomings on the work of the petitioner/firm and tried to justify their action for not making payment in time and asking the petitioner to withdraw their decision of terminating the contract. As per the petitioner the respondents thereafter malafidely issued a letter dated 21.10.2020 to them informing that on the site, only one employee was present and as such, they noticed no progress in the work and asked the petitioner to keep their employees present on the site for expediting the work.

(3.3) In response to the said letter, the respondent/Corporation was informed by the petitioner that it was difficult for them to carryout the services of IE and further requested to get the agreement terminated. Despite that on 27.10.2020, the respondent/Corporation again issued a letter saying that a notice for contract was issued on 13.10.2020 one month in advance, but on 16.10.2020 petitioner/firm removed their employees from the site. It is also informed to the petitioner that if they have any difficulty then on 02.11.2020 they may come in the office of the respondents and submit their stand so that dispute could be resolved. Finally on 07.11.2020 a show-cause notice was issued to the petitioner/firm giving them last opportunity to compl