Tender: PIL by interested person is not maintainable

(A) Constitution of India, Article 14, 226 – Public Interest Litigation – Tender matter – Respondent no. 1, the writ petitioner, is an interested party – It had supplied cardamom to the appellant-Board for the year 2021-2022 – It had also participated in the two tenders released by the appellant-Board, which later came to be cancelled – Although this information has not been concealed, it is quite evident that the writ petitioner was interested in the outcome of the writ petition – The second prayer in the writ petition is for cancellation of the purchase of cardamom from respondent no. 2. – This prayer makes it clear that the real grievance is about the grant of contract in favour of respondent no. 2 – Held that High Court should not have entertained the writ petition on behalf of an interested person who sought to convert a judicial review proceeding for enhancing personal gain – High Court should have dismissed the Writ Petition on the question of maintainability itself. (Para 21 and 23)

(B) Constitution of India, Article 14, 226 – Public Interest Litigation – Tender matter – Writ petitioner also challenged the manner in which the cardamom was sourced – Appellant-Board initially tried to purchase cardamom by issuing tenders and calling for bids, not just once, but twice over – However, these tenders were cancelled since none of the bidders supplied cardamom of appropriate quality – It is in these compelling circumstances, considering the impending festive season and the imminent need to prepare a humungous quantity of Aravana Prasadam, that the appellant-Board invoked the urgency clause in its regulations and authorised the Chief Executive Officer of the Sabarimala Temple to procure cardamom from local sources – Held that it cannot be said that the decision is arbitrary, irrational or unreasonable. – There is neither arbitrariness nor malice in the decision of the appellant-Board as all the prospective bidders were given a fair chance as the notice to purchase cardamom was published on the notice board – The cardamom samples submitted by the bidders were then tested in a nearby lab, which was also established by the Commissioner of Food Safety as per an order of the High Court – Thereafter, price negotiations were conducted, and respondent no. 2 was given supply orders after quoting the lowest rates – Decision of the appellant-Board held to be legal, fair and transparent – High Court committed an error in entertaining the writ petition filed by respondent no. 1. (Para 22)

SUPREME COURT OF INDIA

2024 STPL(Web) 204 SC

[2024 INSC 183]

Travancore Devaswom Board Vs. Ayyappa Spices And Others

Civil Appeal Nos. 3866-3867 of 2024 (Arising Out of SLP (C) Nos. 10361-10362 of 2023)-Decided on 06-03-2024

https://stpllaw.in/wp-content/uploads/2024/04/2024-STPLWeb-204-SC.pdf

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Contract: Demurrage not allowed

Indian Contract Act, 1872 – Demurrage – Contractual Liability – Liquidated Damages – Breach of Contract – Adjudication of Claims – The petitioner, engaged in transportation business, participated in a competitive bidding process and was awarded a transportation contract by the Food Corporation of India (FCI). Dispute arose when FCI began deducting demurrage charges from petitioner’s bills for alleged delay in unloading wagons, despite petitioner not being responsible for wagon unloading.

The petitioner contested the deduction, arguing that as per the contract, demurrage cannot be unilaterally imposed by FCI unless liability is determined through due process of law.

The Court examined the relevant contract clause, which allowed FCI to recover costs, damages, etc., due to contractor’s negligence, but found it did not specifically authorize demurrage deduction.

Relying on the Supreme Court precedent in Food Corporation of India vs. Abhijit Paul, the Court held that demurrage could not be levied on the petitioner as the contract did not assign the task of wagon unloading to them.

The absence of a liquidated damages clause in the contract further supported the Court’s decision. The Court directed FCI to refund the deducted demurrage amount and refrain from further deductions, unless liability is determined through lawful adjudication.The order did not prevent FCI from seeking damages through proper legal channels. (Para 12, 15, 18, 22)

GAUHATI HIGH COURT

2023 STPL(Web) 184 Gauhati

[2024 STPL 1652 Gauhati]

Hi Speed Logistics Pvt Ltd. Vs. Food Corporation Of India And 5 Ors.

WP(C) 6317 of 2022-Decided on 8-11-2023

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Breach of peace: It must disturb public order, not just personal peace

Code of Criminal Procedure, 1973 – Sections 145, 146- Breach of peace – Emergency situation – Possession dispute – Civil litigation – Non-application of mind – Proceeding under Section 145 – Attachment under Section 146 – The application under Section 482 of the Code of Criminal Procedure, 1973 challenges the orders by the Executive Magistrate, concerning a dispute under Section 145 of the Code of Criminal Procedure, 1973 and subsequent attachment under Section 146(1) of the same.

The petitioner contests the legality of both orders, asserting that the initiation of the proceeding and the attachment were illegal and an abuse of process. It’s argued that the jurisdiction under Section 145 can only be invoked if there’s a likelihood of a breach of peace, which wasn’t sufficiently demonstrated in this case.

The petitioner highlights that the attachment order was passed ex-parte without affording them an opportunity to respond, which is contrary to the exceptional circumstances required for such an order. Reference is made to legal precedent discouraging parallel criminal proceedings when a civil litigation is pending regarding property possession, emphasizing the binding nature of civil court decrees.

The respondents counter by claiming entitlement to the land based on a partition deed and subsequent court judgments. They argue that emergency circumstances justified the attachment due to the petitioner’s attempt to construct on disputed land.

Legal precedents are cited to emphasize that the existence of an emergency, not just the use of the term “emergency,” warrants attachment under Section 146.

The judgment critically examines the orders and the circumstances leading to them. It observes discrepancies between the assertions made in the complaint and police report, highlighting the absence of clear grounds for apprehension of breach of peace.The judgment reiterates the requirement for a dispute likely to cause a breach of peace under Section 145, emphasizing that it must disturb public order, not just personal peace.

It concludes that the impugned orders suffer from non-application of mind and jurisdictional error, resulting in injustice to the petitioner. Consequently, both orders are quashed, and the petition is allowed. Important Paragraph Numbers of Judgment: (Para 13, 19, 30, 31)

GAUHATI HIGH COURT

2023 STPL(Web) 183 Gauhati

[2024 STPL 1651 Gauhati]

Md. Osman Ali Saikia And Anr. Vs. Chand Mahamod Saikia And 2 Ors.

Crl.Pet. 239 of 2021-Decided on 8-11-2023

https://stpllaw.in/wp-content/uploads/2024/05/2023-STPLWeb-183-Gauhati.pdf

 

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Electricity: Outstanding arrears from previous owner

Constitution of India, Article 226 – Assam Electricity Regulatory Commission [Electricity Supply Code and Related Matters] Regulations, 2004 – Electricity Act, 2003 – Section 43, 49, 50, 56 – Electricity – Outstanding arrears from previous owner – The petitioner, a partnership firm, sought a writ petition under Article 226 challenging a decision by the Assam Power Distribution Company Limited (APDCL) to deny a new electricity connection to their premises due to outstanding arrears from previous electricity bills.

The court directed interim relief for immediate electricity connection, subject to 50% payment of outstanding dues, with the remaining 50% to be paid upon dismissal of the writ petition.

The petitioner participated in an auction sale of a property and purchased a portion of land with a Business Centre cum Market Complex. They subsequently applied for a new electricity connection, which was denied by APDCL citing outstanding dues.

The court referred to the Assam Electricity Regulatory Commission [Electricity Supply Code and Related Matters] Regulations, 2004 and the Electricity Act, 2003. It cited a Supreme Court decision (K.C. Ninan vs. Kerala State Electricity Board) regarding the liability of auction purchasers for previous dues in properties sold on ‘as is where is’ basis.

The court dismissed the writ petition, holding the petitioner liable for outstanding electricity dues as per the auction sale agreement. It directed the petitioner to pay the outstanding dues as per the interim order, with APDCL waiving the accrued interest on the principal dues. (Para 15, 16)

GAUHATI HIGH COURT

2023 STPL(Web) 182 Gauhati

[2024 STPL 1650 Gauhati]

M/S Borah And Companyjiban Phukan Nagar Vs. Assam Power Distribution Company Ltd. And 3 Ors.

WP(C) 989 of 2014-Decided on 7-11-2023

2023 STPL(Web) 182 Gauhati

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