{"id":320284,"date":"2024-04-18T13:00:41","date_gmt":"2024-04-18T07:30:41","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=320284"},"modified":"2024-04-23T11:50:39","modified_gmt":"2024-04-23T06:20:39","slug":"madhya-pradesh-high-court-affirms-order-closing-scrap-sleepers-lifting-contract-and-forfeiture-of-deposited-money-scc-times","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2024\/04\/18\/madhya-pradesh-high-court-affirms-order-closing-scrap-sleepers-lifting-contract-and-forfeiture-of-deposited-money-scc-times\/","title":{"rendered":"Madhya Pradesh High Court affirms decision to close \u2018Scrap Sleepers Lifting\u2019 contract and forfeiture of deposited money"},"content":{"rendered":"
\n

Madhya Pradesh High Court:<\/span> In a petition challenging the order of closure of contract awarded to the petitioner for lifting scrap sleepers and forfeited the money deposited by the petitioner towards the cost of the scrap lot, a single-judge bench comprising of G.S. Ahluwalia, J., upheld the respondent’s decision, emphasising on the petitioner’s awareness of the auction terms and the limitations of judicial review in contractual matters. The Court held that the petitioner has participated in the bid with clear facts in its knowledge that then the petitioner cannot make a grievance that it has been asked to do an impossible act by not providing the railway trolley to the petitioner.<\/p>\n

Brief Facts<\/p>\n

In the instant matter, the petitioner submitted the highest bid for lifting scrap sleepers in response to an advertisement. However, the petitioner encountered difficulties in accessing certain locations where scrap sleepers were stored due to their remote and unapproachable nature. Despite multiple requests, the railway authorities rejected the petitioner’s request for a rail trolley to facilitate the lifting process. The petitioner subsequently sought cancellation of the agreement and refund of the deposited money through several letters and reminders, citing the impracticality of lifting the scrap material without a rail trolley. The petitioner filed a petition under Article 226<\/a> of the Constitution of India<\/a> against an order dated 06-11-2020 passed by respondent 2, which closed the contract awarded to the petitioner on 10-10-2017 for lifting scrap sleepers and forfeited the money deposited by the petitioner.<\/p>\n

Moot Point<\/p>\n

    \n
  1. \n

    Whether the petitioner was justified in seeking cancellation of the contract and refund of the deposited money due to the unavailability of a rail trolley?<\/p>\n<\/li>\n

  2. \n

    Whether the petitioner’s actions were in accordance with the terms of the auction sale conditions?<\/p>\n<\/li>\n<\/ol>\n

    Parties’ Contentions<\/p>\n

    The petitioner argued that the impossibility of lifting the scrap material without a rail trolley rendered the contract void under Section 56<\/a> of the Contract Act, 1872<\/a>. It was contended that their actions were consistent with the terms of the auction sale conditions and relied on Messrs Kamdhenu Trading Co.<\/span> v. Union of India<\/span>, S.L.P.No.21175-21176\/2022, order dated 01-08-2023 and Messrs Kamdhenu Trading Co.<\/span> v. Union of India<\/span>, W.P.C.No.4316\/2023, order dated 07-02-2024 for extension of time and permission to lift scrap material. On the other hand, the respondents contended that the auction sale conditions explicitly stated that lots were sold on an “as is where is” basis, and purchasers were advised to inspect the material before bidding. It was argued that the petitioner’s failure to lift the scrap material was solely attributable to their own actions, and therefore, the contract was rightfully closed.<\/p>\n

    Court’s Observation<\/p>\n

    The Court observed that the auction sale conditions clearly advised purchasers to inspect the material before bidding and stated that no complaints or claims would be entertained regarding the condition of the lots. The Court noted that the petitioner participated in the bid with knowledge of the scrap material’s location and condition, and therefore, he cannot claim impossibility of performance due to the unavailability of a rail trolley. The Court further stated that if the petitioner believed the scrap material cannot be lifted without the rail trolley, he could have applied for lending railway trolley on rent.<\/p>\n

    The Court distinguished precedents cited by the petitioners where relief was granted and stated that as the petitioner never sought extension or expressed willingness to perform the contract, they are not entitled to same\/similar relief. The Court emphasised on the limited scope of judicial review in contractual matters and cited Uflex Ltd.<\/span> v. Govt. of T.N.<\/span>, (2022) 1 SCC 165, Caretel Infotech Ltd.<\/span> v. Hindustan Petroleum Corpn. Ltd.<\/span>, (2019) 14 SCC 81 and Tata Cellular<\/span> v. Union of India<\/span>, (1994) 6 SCC 651, highlighting the principle of judicial restraint in administrative actions. Ultimately, the Court found no illegality or infirmity in the respondents’ actions and held that the petitioner’s failure to lift the scrap material was solely attributable to them.<\/p>\n

    Court’s Decision<\/p>\n

    The Court held that the petitioner’s petition under Article 226 for enforcement of the contract was not maintainable, and no grounds for interference were found. The Court dismissed the petition, granted no relief to the petitioner and upheld the respondents’ actions.<\/p>\n

    [Kamdhenu Trading Co.<\/span> v. Union of India<\/span>, 2024 SCC OnLine MP 2143<\/a>, order dated 13-04-2024<\/span>]<\/p>\n\n

    Advocates who appeared in this case :<\/p>\n

    Shri Rudra Dev Singh, Counsel for the Petitioner<\/p>\n

    Shri Mahesh Kumar and Shri Harshvardhan Singh, Counsel for the Respondents<\/p>\n

    Buy Constitution of India  HERE<\/a><\/h3>\n

    \"Constitution<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    Madhya Pradesh High Court rejected the petitioner’s argument for voiding the contract under Section 56 of the Contract Act, 1872, and found the failure to lift scrap was attributable to the petitioner.<\/p>\n","protected":false},"author":67514,"featured_media":317738,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[67682,67681,67683,61228,7201,67680],"class_list":["post-320284","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-auction-terms","tag-forfeiture-of-money","tag-judicial-review-contractual-matters","tag-justice-g-s-ahluwalia","tag-madhya-pradesh-high-court","tag-scrap-sleepers-lifting"],"yoast_head":"\nMadhya Pradesh High Court affirms order closing \u2018Scrap Sleepers Lifting\u2019 contract and forfeiture of deposited money | SCC 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Ahluwalia, J. dismissed a writ due to lack of merit, where the petitioner challenged the advertisement by which the applications had been invited from Private Operators for the operation of Lok Seva Kendra under State Agency for Public Service, Madhya Pradesh. Learned counsel for the\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":295859,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/03\/mp-hc-no-regularization-service-past-performance-long-service-temporary-appointees\/","url_meta":{"origin":320284,"position":1},"title":"Temporary Appointees cannot claim regularization based on past performance or long service: Madhya Pradesh High Court","author":"Ritu","date":"July 3, 2023","format":false,"excerpt":"Madhya Pradesh High Court held that \u201cin the terms and conditions of the appointment it is clearly mentioned that the employee would not be having any right to claim regularization\u201d.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Madhya Pradesh High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/madhya-pradesh-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/madhya-pradesh-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/madhya-pradesh-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/madhya-pradesh-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":328517,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/08\/12\/advocates-cant-pressurise-courts-to-pass-favorable-orders-mp-hc-condemns-counsels-on-fee-recovery-from-client-comment-scc-times\/","url_meta":{"origin":320284,"position":2},"title":"\u201cAdvocates can\u2019t pressurise Courts to pass favorable orders\u201d; MP High Court condemns Counsel\u2019s \u2018fee recovery from client\u2019 comment","author":"Ritu","date":"August 12, 2024","format":false,"excerpt":"\u201cAfter realizing that the Court may not pass a favourable order, if an attempt is made by a Lawyer to seek adjournment, then it is a glaring example of Bench hunting.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Madhya Pradesh High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Madhya-Pradesh-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Madhya-Pradesh-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Madhya-Pradesh-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/Madhya-Pradesh-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":270914,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/07\/30\/madhya-pradesh-high-court-violation-of-individual-privacy-request-for-dna-test-denied-in-property-dispute\/","url_meta":{"origin":320284,"position":3},"title":"Madhya Pradesh High Court | ‘Violation of individual privacy’; Request for DNA test denied in property dispute","author":"Editor","date":"July 30, 2022","format":false,"excerpt":"\u00a0 \u00a0 Madhya Pradesh High Court: G.S. Ahluwalia, J. dismissed a petition which was filed against the order passed by Twelfth Civil Judge, Class II by which the application filed by the petitioner for conducting DNA test of Hemlata Yadav had been rejected. Husband of the petitioner had filed a\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Madhya Pradesh High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/MicrosoftTeams-image-250.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/MicrosoftTeams-image-250.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/MicrosoftTeams-image-250.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/MicrosoftTeams-image-250.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/MicrosoftTeams-image-250.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":270344,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/07\/19\/madhya-pradesh-high-court-substitution-of-an-appointment-on-compassionate-grounds-through-contractual-appointment-held-illegal-directions-issued\/","url_meta":{"origin":320284,"position":4},"title":"Madhya Pradesh High Court | Substitution of an appointment on compassionate grounds through contractual appointment held illegal; directions issued","author":"Editor","date":"July 19, 2022","format":false,"excerpt":"\u00a0 \u00a0 Madhya Pradesh High Court: The Division Bench of Ravi Malimath, CJ. and Vishal Mishra, J. allowed a writ petition directing the respondents to pay costs for the delay in compassionate employment. The case of the writ petitioner is that his father, who was working as an Assistant Veterinary\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Madhya Pradesh High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/MicrosoftTeams-image-250.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/MicrosoftTeams-image-250.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/MicrosoftTeams-image-250.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/MicrosoftTeams-image-250.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/MicrosoftTeams-image-250.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":301980,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/09\/20\/employment-agreement-allows-transfers-for-administrative-reasons-madhya-pradesh-hc-legal-research-news-scc-blog\/","url_meta":{"origin":320284,"position":5},"title":"Madhya Pradesh High Court allows transfer of Contractual Employees for administrative reasons under special circumstances","author":"Ritu","date":"September 20, 2023","format":false,"excerpt":"Madhya Pradesh High Court held that Contractual Employee are not entitled to claim non-transferability due to employment agreement allowing administrative transfers.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Madhya Pradesh High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/madhya-pradesh-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/madhya-pradesh-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/madhya-pradesh-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/madhya-pradesh-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/320284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67514"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=320284"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/320284\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/317738"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=320284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=320284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=320284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}