SESIAH Vs. CHAIRMAN TAMIL NADU ELECTRICITY BOARD

JUDGEMENT

(1.) THE petitioner has challenged the validity of two orders, one bearing No. SECH/e1/a1/fngl/accept No. 18a/97-98, D-1290, dated 20-9-1997 , and the other bearing No. SECH/e2-A1/fngl/accept No. 18a/97-98, D-1407, dated 8-10-1997, passed by respondent No. 2 cancelling the contract awarded to the petitioner herein and rejecting the representation of the petitioner to re-consider the order of concellation.

(2.) THE question for determination in this writ petition is whether the cancellation of the building contract awarded to the petitioner is sustainable in law "

(3.) LEARNED Counsel for the Electricity Board inter alia contended that the non-compliance of the condition enables the Board to cancel the contract that too, when the contract was not complete and becomes complete only on execution of the document. He relied on a decision of the Apex Court reported in Rajasthan Co-operative Dairy Federation Ltd. v. Maha Laxmi Mingrate marketing Service Pvt. Ltd. and others. It was a case where a letter of intent issued by the appellant in favour of respondent for appointment of selling agent of appellant's products. The condition precedent provided therein for such appointment was a Bank guarantee of Rs. 15 lakhs within a specified date. The execution of the agreement with the appellant within that date and submission of profit and loss account and balance sheet for the past year before execution of the agreement. The respondent not fulfilling the conditions but issuing an unauthorised advertisement wrongly describing itself as the sole selling agent of the appellant. In that context the cancellation was resorted. But, this is not one such case and the decision has on application.