IN RE Vs. ARCHON POWERINFRA INDIA PRIVATE LIMITED

JUDGEMENT

(1.) The present writ petition has been preferred primarily praying for the following relief:

(2.) Mr. Sen, learned advocate appearing for the petitioner submits that a Notice Inviting Tender (in short, the NIT) being No.WBSO/LPGE/PT-01/16-17 was floated by Indian Oil Corporation Limited (in short, the IOCL) towards construction of new plant shed and allied civil structural and enabling works at LPG Bottling Plant, Budge Budge. The petitioner emerged to be successful in the tender process and was issued the letter of intent on 4th July, 2016. The duration of the said work was of seven months period from the date of work order or actual date of handing over of the site, whichever is later. The petitioner faced several hindrances towards completion of such work. The local people and local unions created disturbances and forcibly stopped the work on numerous occasions. The delay was thus not attributable to the petitioner. Such fact was brought to the notice of IOCL but in vain. No formal extension was granted. Abruptly thereafter a show cause notice was issued by the General Manager (LPG), West Bengal State Office of IOCL on 23rd Aug., 2018 directing immediate suspension of work. The petitioner replied to the said show cause notice on 5th Sept., 2018. Subsequent thereto, by a memo dated 2nd Nov., 2018 issued by the Chief General Manager (LPG), West Bengal State Office the contract terminated. In the notice dated 2nd Sept., 2018 it has also been stated that IOCL shall take action in getting the balance work done through alternate parties.

(3.) Mr. Sen contends that without issuance of any prior notice, IOCL took a decision to suspend the petitioner's work. Such action is not sustainable in law inasmuch as the same has been issued in derogation to the provisions of Clause 2.8.1.0 of the General Conditions of Contract (in short, GCC). There had been no reasonable exercise of discretion by the competent authority prior to issuance of the said notice. The said notice does not disclose any consideration of the circumstances on the basis of which the same was issued. Prior to establishment of any guilt, the petitioner has been penalized.