(1.) THIS is a rule directed against the State Government under Article 226 to show cause why a writ of 'mandamus' should not be issued in regard to the contract entered into between the petitioner and the state.
(2.) THE contract which is complained of was made on 12-12-1952, and was to begin from 4-12 1952, and was to continue up to 3-12-1953. In this agreement there is a clause (Clause 7) which gives to the Government the right to cancel the contract without assigning any reason and without their being liable for any compensation and this could be done at any moment. The submission of the petitioner is that his contract was put an end to "as a result of executive action which was capriciously taken and the action of the Government is 'mala fide' and that it has resulted in a breach of his fundamental right which he claims under Article 14 of the constitution.
(3.) ARTICLE 14 provides for equality before- the law and is in the following terms: "the State shall not deny to any person equality before the law or the equal protection of the laws within the territory of India. According to the petitioner, the breach of fundamental right lies in this that clause 7 is discriminatory and the provision contained therein deprives him of the right to go to a Court of law to enforce a suit for compensation and undue favour has been done to the person in whose favour the contract has now been made.