LAWS(DLH)-1989-9-33

M A CONTRIBUTION CO Vs. DELHI DEVELOPMENT AUTHORITY

Decided On September 02, 1989
M.A.CONTRIBUTION COMPANY Appellant
V/S
DELHI DEVELOPMENT AUTHORITY Respondents

JUDGEMENT

(1.) JUDGMENT , J.-

(2.) M.A. Construction Company, the present petitioner, was awarded by Delhi Development Authority, respondent No. 1, the work I for construction of 1644 Janta tenements at Paschimpuri SH : providing flushing system for 664 (S/S) Janta tenements at Paschimpuri, on the terms and conditions, as contained in tender forms, letter of acceptance and contract dated November 12, 1975. A formal deed of agreement was also entered into between petitioner and respondent No. 1, on November 12, 1975.

(3.) IN the objections, respondent No. 1 has alleged that petitioner had failed to complete the work on time, and in fact, stopped the working after January 7, 1978. IN spite of various show cause notices, issued by the concerned officer of respondent No. 1, petitioner failed to resume the work. Under these circumstances, respondent No. 1 was fully justified in rescinding the contract. Respondent No. 1 also became entitled to forfeit the security deposit, under clause 3 of the Agreement.