In a recent court judgment, the High Court scrutinized the cancellation of a work order in a case involving educational institutions. The court’s legal analysis focused on the implications of suspending/cancelling the order during the pandemic and the necessity of concrete evidence in contractual disputes. Dive into the complexities of the case as we unravel the court’s perspective on specific performance of contracts and the role of civil suits in seeking relief.
Facts
- The High Court of Judicature at Bombay, Nagpur Bench allowed the writ petition filed by respondent No.1 & 2, quashing the action of the appellant in cancelling the work order.
- Original writ petitioner No.1 was declared entitled to supply as per the work order dated 07.02.2020 to the appellant and receive payments as per the terms of the work order.
- The Municipal Council, Gondia filed the present appeal against this judgment and order.
- The appellant, Municipal Council, operates educational institutions/schools.
- The Court ordered on 07.02.2022 that the petitioner’s official must visit the place where the manufactured goods are kept, identify goods required immediately (not less than 25% of total quantity), schedule the lifting of balance goods, and payment.
- This order was influenced by the fact that the COVID-19 pandemic had caused difficulties over the past two years, but with schools reopening, the supplies needed to be acquired.
- Original writ petitioners had already manufactured customized goods as per work order
- Resolution passed for purchasing desks, benches, almirahs, and tables
- Tender issued for the items, original writ petitioner declared successful bidder
- Communication received by Municipal Council regarding suspension of purchases due to lockdown
- Work order suspended until further orders
- Municipal Council cancelled work order due to non-urgent nature during pandemic
- Agreement executed between original writ petitioner and appellant
- Government G.R. of 04.05.2020 advised against non-priority expenditure like the current case
- Original writ petitioners filed W.P. No.1984 of 2020 challenging suspension/cancellation of work order
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Arguments
- Manufactured goods not available as per specifications and requirements
- No manufactured goods available till date
- Officials of the Council visited Nagpur on 11.02.2022 and found goods did not meet the requirements
- Goods not prepared for the Council as claimed by the original writ petitioners
- Communication dated 18.02.2022 admitted goods were not available
- Municipal Council officials visited respondent No.1 premises on 10.02.2022
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Analysis
- The High Court erred in setting aside the communication dated 18.05.2020 and 07.07.2020 without appreciating the reasons for suspending/cancelling the work order.
- No evidence was presented to show that the goods were actually manufactured as per specifications and requirements of the Council as per the work order.
- The High Court should not have directed the Council to continue the work order and accept goods without concrete evidence.
- No writ of mandamus should have been issued for specific performance of the contract/work order.
- The original writ petitioners should have been directed to file a civil suit for appropriate relief.
- There are disputed questions of fact regarding whether the goods were manufactured as per specifications.
- Due to practical constraints, the goods were dismantled and require time for reassembling for supply.
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Decision
- The High Court erred in quashing and setting aside the communication dated 07.02.2020
- The present appeal succeeds and is allowed
- The original writ petition stands dismissed
- Original writ petitioners are not precluded from initiating appropriate proceedings before the civil court for damages/losses
- No costs are awarded
- The impugned judgment and order in W.P. No.1984/2020 is quashed and set aside
Case Title: MUNICIPAL COUNCIL GONDIA Vs. DIVI WORKS AND SUPPLIERS HUF (2022 INSC 244)
Case Number: C.A. No.-001538-001538 / 2022
