Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Contract Natural justice Administrative Law |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Contract - Termination of, by respondent-authority - Termination challenged on ground that principles of natural justice requiring a fair hearing to the appellant were not C complied with - Held: Termination of the contract was preceded by a show-cause notice issued to the appellant and a hearing provided to it by the competent authority - The show-cause notice enclosed with it all relevant documents - Issue of a show-cause notice and disclosure of material on the basis of which action was proposed to be taken against the appellant was in compliance with the requirement of fairness to the appellant - Absence of any allegation of mala fides against those taking action as also the failure of the appellant to disclose any prejudice, all indicated that the procedure was fair and in substantial, if not strict, compliance with the requirements of audi alteram partem - Principles of natural justice thus stood substantially complied with. Contract - For collection of fee for using stretch of road on the National Highway - Awarded to appellant - Contract subsequently terminated by respondent-authority - Termination challenged on ground that there was no real basis for the respondent-authority to hold that appellant- contractor had committed any breach of the terms and conditions of the contract warranting its termination - Held: Reports submitted by the agency employed by respondent- authority clearly showed that appellant-contractor was indulging in malpractices - If the report submitted by the agency against whom the appellant has no allegation of malice or other extraneous considerations to make are accepted, no reason why the same could not furnish a safe basis for the respondent to take action against the appellant especially when it was abusing its position as a contractor, putting the public at large to unnecessary harassment and demanding money not legally recoverable from them - Appellant-contractor, thus, not entitled to claim any relief. Contract - Termination of, by respondent-authority - Forfeiture of performance security furnished by appellant- contractor- Justification of - Held: Justified - Such forfeiture was available to respondent-authority under the terms of the contract and the provisions of s. 74 of the Contract Act did not forbid the same - An aggrieved party is entitled to receive compensation from the party who has broken the contract whether or not actual damage or loss is proved to have been caused by the breach - Contract Act, 1872 - s. 72. Contract - Termination of, by respondent-authority - Revocation of bank guarantee furnished by appellant- contractor - Justification - Held: Not justified as respondent- authority had already recovered the penalty levied by it and also forfeited the performance security - Though in terms of clause 1 B(b) of the contract, the respondent-authority had the right to estimate the excess of collection by the appellant- contractor and recover the same from it, however, nothing on record whether any such estimation was made by the authority and if so the basis on which that was done - Without a proper estimation of the excess received by the appellant-contractor, it was not open to the respondent-authority to invoke the bank guarantee. Administrative Law - Natural justice - Rules of - Held: Are not rigid, immutable or embodied rules - To an extent there has been a shift from the earlier thought that even a technical infringement of the rules is sufficient to vitiate action.Administrative Law - Natural justice - Doctrine of audi ' alteram partem - Object of - Held: Is to strike at arbitrariness and want of fair play. |
Judge | Honble Mr. Justice T.S. Thakur |
Neutral Citation | 2013 INSC 117 |
Petitioner | M/s. A.s. Motors Pvt. Ltd. |
Respondent | Union Of India And Ors. |
SCR | [2013] 4 S.C.R. 409 |
Judgement Date | 2013-02-21 |
Case Number | 1517 |
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