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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
NAGESH BHEEMAPAKA
TSR Nirmaan Pvt. Ltd., Through Authorized Representative – Appellant
Versus
State Of Telangana, Through Principal Secretary, Department Of Energy – Respondent
ORDER :
NAGESH BHEEMAPAKA, J.
Petitioner is a private limited company engaged in execution of large-scale infrastructure and civil engineering works and has, over the years, undertaken complex projects involving earthwork, bridges, and allied construction activities. Pursuant to an open tender process initiated by Respondent No.2, Petitioner was awarded the subject work. The present writ petition is filed challenging the action of Respondent No.2 in issuing Termination Notice dated 30.09.2025 and the consequential and imminent steps taken and threatened to be taken for invocation of the Bank Guarantees furnished by Petitioner, coupled with forfeiture of amounts admittedly owed and refundable to Petitioner under the contract.
1.1. Petitioner contends that impugned termination and threatened invocation of Bank Guarantees is ex facie arbitrary, unreasonable and vitiated by mala fides. It is specifically pleaded that the alleged delay in execution of works was not attributable to any default on their part, but was occasioned solely due to Respondent No.2's own persistent and admitted lapses, including failure to hand over encumbrance-free and workable site, failure to furnish approved dra
Termination of contracts must adhere to established contractual obligations and procedural requirements; failure to comply with these undermines claims of unreasonableness or arbitrariness in actions....
Judicial review is permissible in contractual disputes involving public law elements, but the existence of an arbitration clause limits the scope of such review.
The main legal point established in the judgment is that the invocation of an unconditional bank guarantee must meet the stipulated requirements, and the court may grant a restraint order if the invo....
Writ jurisdiction can address arbitrary state actions in contractual disputes, emphasizing the importance of procedural fairness and adherence to contractual terms, especially regarding extensions an....
The invocation of a bank guarantee must strictly adhere to its stipulated terms, particularly the requirement to assert loss or damage; otherwise, it may be restrained.
The submission of forged bank guarantees constitutes a serious breach of contract, justifying termination under the General Conditions of Contract, as fraud vitiates all transactions.
The court established that while bank guarantees cannot be prohibited from invocation, prior notice must be given to the petitioner due to ongoing project works, considering disputes related to timel....
Bank guarantees are independent contracts and can only be restrained in exceptional cases of fraud or irretrievable injustice.
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