KNIGHTS SECURITY SERVICES Vs. UNION OF INDIA

JUDGEMENT

(1.) NATIONAL Hydroelectric Power Corporation Limited entered into an agreement with M/s. Knights Security Services, the petitioner, permitting it to provide security services for Sewa Hydroelectric Project Stage -II at Khairi. This agreement had to remain in force from January 12, 2004 to January 11, 2005, subject however, to its earlier termination by one months notice, in writing, from either side. Clause 22 of this agreement, however, provided that upon satisfactory performance by the party of the agreement, Project office will have the option to extend the agreement by two years on the same terms and conditions.

(2.) INVOKING clause 22 of the agreement, the petitioner has filed this writ petition seeking a command against the respondents to refrain from terminating arbitrarily the contract/arrangement of the petitioner for providing security services to Sewa Hydroelectric Project Stage -II, otherwise than in accordance with the guidelines for the functioning of the security agencies as published by the Directorate General (Re -settlement), Ministry of Defence, New Delhi. Petitioner seeks yet another direction against the Corporation to refrain from calling for, processing of and allotting the contract of security services before January 11, 2007.

(3.) PETITIONER has stated in its petition that it had been allowed by the Corporation to continue working, as such, up to January 11, 2006, i.e., for one more year on the existing terms and conditions, and in the meanwhile, the Corporation had invited offers from other contractors as well to consider allotment of work for providing security services to the one who was found suitable therefor.