K.VIJAYALAKSHMI Vs. B.PRAKASHAM

JUDGEMENT

(1.) Whether the single Judge digressed from the limited scope of contempt jurisdiction and whether the Letters Patent Appeals under Clause 15 of the Letters Patent are maintainable and whether there was any wilful disobedience of the interim order dated 2.6.2011 made in O.A.No.491 of 2011 are the points falling for consideration in these Letters Patent Appeals.

(2.) Brief facts leading to the Letters Patent Appeals are as follows:-

(3.) Since the Appellant(s) were the successful tenderers in that tender, the same was accepted by the competent authority viz., the General Manager, Tamil Nadu Food Corporation of India, Tamil Nadu Region in letter of Memorandum dated 25.01.2011. In pursuance thereof, agreements dated 23.3.2011 were entered into between the Appellant(s) and Food Corporation of India. The period of ninety days stipulated for acquiring land for construction of godown was to end on 25.4.2011 and the Appellant(s) have not produced any document to prove acquisition of land within the stipulated period. The Appellant(s) made a representation requesting to grant fifteen working days with effect from 14.5.2011 i.e., till 28.05.2011 to acquire the land for construction of godowns and also another request by e-mail addressed to the Chairman and Managing Director, F.C.I. Headquarters, New Delhi marking a copy to Regional Office at Chennai. The General Manager, Food Corporation of India Regional Office, Chennai informed the Appellant(s) that extension will not be considered under any circumstances. Since the Appellant(s) failed to acquire the land within the stipulated period of ninety days and that it amounted to breach of contract, by letter dated 13.5.2011, FCI Regional Office at Chennai terminated the contract and agreement dated 23.3.2011 entered with Appellant(s) for construction of godown facility. The Appellant(s) were also informed that the security deposit of Rs.4,00,000/- furnished by them to FCI for non-performance of the contract is forfeited and that FCI invokes bank guarantee bearing No.9 of 2010 (Vijayalakshmi) for Rs.10,00,000/- and 11 of 2010 (Perumalsamy) for Rs.10,00,000/-; Rs.10,00,000/- and Rs.10,00,000/- issued by Corporation Bank, Tuticorin.