Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Contract - Work contract |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Contract - Work contract- For extraction and transfer of Coal/Coal Measure Strata by deploying surface miners - As per the terms and conditions of the tender document as well as the agreement, the tender quantity could be reduced or increased by 30% on the same terms and conditions - Time for completion of contract work was extended at the request of the contractor - During the subsistence of the contract period appellant-company passed order for increase of 30% extra quantity - The contractor requested the company for closure of contract and informed its intention to withdraw from operation after full contract period due to financial hardship - The. company therefore gave the remaining work to a third party at higher rate - Company imposed penalty on the contractor for non-execution of the remaining work - The penalty was inclusive of the financial loss incurred by the company due to allocation of that work at higher rate - Contractor filed writ petition - Petition allowed by High Court - On appeal, held: Clause 5 of the agreement empowered the company to increase or reduce the quantify of work by 30%, whilst the contract was subsisting - Therefore, obligation of contractor to complete the extra work in terms of the contract within the contract period or extended period was imperative - Contractor committed breach of contractual obligation in not completing the balance work - The contractor is liable to compensate for the financial loss suffered by the company in assigning the remaining work at higher rate - However, liberty is granted to the contractor to make representation to the company requesting to waive the penalty in terms of the contract. |
Judge | Hon'ble Mr. Justice A.M. Khanwilkar |
Neutral Citation | 2016 INSC 920 |
Petitioner | Mahanadi Coalfields Ltd. & Ors. |
Respondent | M/s. Dhansar Engineering Co. Pvt. Ltd. & Anr. |
SCR | [2016] 7 S.C.R. 127 |
Judgement Date | 2016-09-27 |
Case Number | 9732 |
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