Termination of Contractor License – Proportionality and Reasonableness – Writ Petition challenging the termination of a contractor’s license without a hearing and on grounds not related to the performance of contractual duties – High Court quashed the termination order, applying the principles of proportionality and Wednesbury reasonableness, highlighting the need for a reasoned decision and consideration of relevant facts.

Wednesbury Principle of Reasonableness – Judicial review of administrative decisions – Court held that the termination of the petitioner’s license was disproportionate and failed to consider the petitioner’s consistent satisfactory performance and the irrelevance of the alleged misconduct to his contractual duties – Impugned order quashed [Paras 1-17].

Proportionality – Test of proportionality applied – Court emphasized that administrative actions should not exceed what is necessary to achieve desired results – Termination of license for a single incident of alleged misconduct, with no connection to the petitioner’s work performance, deemed excessive [Paras 12-16].

Decision:

Writ Petition Allowed – Impugned order dated 26^th February 2024 terminating the petitioner’s license quashed and set aside – High Court mandates proper adherence to principles of proportionality and reasonableness in administrative decisions [Paras 17-18].

Specific Performance – Sale Agreement vs. Loan Security – Appellants contended that the sale agreement was intended as security for a loan – Trial Court and First Appellate Court found in favor of the respondent, confirming the sale agreement and granting specific performance – Appellants’ argument regarding clause allowing for refund with interest rejected – Judgment upheld [Paras 1-13].

Evidence and Pleadings – Admission by Defendants – Trial Court noted defendants’ admissions regarding the execution of the sale agreement and receipt of sale consideration – First Appellate Court affirmed findings, emphasizing that clause regarding refund was protective, not exclusive of specific performance – No substantial question of law found for second appeal [Paras 5-12].

Decision – Second Appeal Dismissed – Held – No error in concurrent findings of lower courts – Sale agreement deemed valid and enforceable – Clause for refund does not negate right to specific performance [Para 13].

Criminal Law – Quashing of FIR – Application under Section 482 Cr.P.C. to quash FIR alleging dowry harassment and related offenses – High Court emphasized that FIR can only be quashed in the rarest of rare cases – Court found specific allegations of dowry demands and harassment substantiated by the complaint – Held that the Court cannot examine the veracity of allegations or conduct a detailed inquiry at this stage – Application dismissed [Paras 1-29].

Dowry Harassment – Continuous Offense – Allegations of continuous harassment for dowry from the date of marriage until the filing of FIR – Court held that harassment compelling the complainant to live in parental home amounts to cruelty under Section 498A IPC – Delay in filing FIR justified as a continuous offense [Paras 7-10].

Inherent Powers of High Court – Scope and Limitations – High Court discussed the limited scope of exercising inherent powers under Section 482 Cr.P.C. – Emphasized that the power should be used sparingly and not to stifle legitimate prosecution – Detailed examination of evidence not permissible at this stage [Paras 11-24].

Decision:

Application dismissed – No grounds found for quashing the FIR – Allegations warrant trial and cannot be summarily dismissed [Para 29].

Criminal Law – Quashing of Proceedings – Petition to quash criminal proceedings under Section 498A IPC and Sections 3 and 4 of Dowry Prohibition Act – Complainant initially made no allegations of dowry – Subsequent complaints and counter-complaints filed by both parties – Allegation of dowry demand emerged after initiation of divorce proceedings by husband – Court finds complaints retaliatory in nature – Proceedings quashed as abuse of process of court [Paras 1-25].

Retaliatory Complaints – Examination of timelines and contents of complaints – Absence of dowry allegations in initial complaint by wife – Subsequent dowry harassment complaint filed following husband’s divorce petition – Initiation of criminal proceedings found to be retaliatory [Paras 12-18].

Dowry Prohibition Act – Analysis of complaint – Initial complaint by wife made no mention of dowry – Counter-complaint by husband about harassment – Allegation of dowry demand only surfaced after matrimonial disputes escalated to court proceedings [Paras 6-16].

Decision – Petition allowed – Proceedings quashed – Directed Magistrate to release certain seized items to husband as per affidavit – Remaining items to be released to wife [Paras 23-25].
 

Criminal Procedure – Pre-arrest Bail – Consideration of Custodial Interrogation Requirement – Petitioners were not in charge of the society at the time the deposits were made – Accusations involve civil nature allegations, making custodial interrogation unnecessary – Bail granted with conditions for cooperation with the investigation [Paras 1-10].

Fiduciary Responsibility – Alleged Cheating – Petitioners were later elected to the governing body and not responsible for initial transactions – Depositors received interest, and partial repayment made during bail application pendency – No mens rea established [Paras 2-9].

Condition for Bail – Surrender before Investigating Officer – Execution of bond and sureties – Prohibition against tampering with evidence and requirement to surrender passports – Violation of conditions leading to potential bail cancellation [Para 10].

Decision – Bail Application Allowed – Conditions imposed to ensure cooperation with investigation and prevention of tampering with evidence – Emphasis on procedural compliance and investigation continuation [Para 10].

Land Tenancy Rights – Legal Status and Recording – Appellant’s recorded tenancy rights altered by Sub-Divisional Officer without due notice and hearing – High Court examines legal position post-1952 Act and full Bench decision in Tara & 35 Ors. Vs. State of Rajasthan – Orders of revenue authorities and learned Single Judge set aside – Case remanded for proper enquiry under settled legal position [Paras 1-18].

Procedural Fairness – Due Process in Revenue Entries – Sub-Divisional Officer’s correction of revenue entries without enquiry held as improper – Emphasized necessity for notice and enquiry per Land Revenue Act – Rights of appellant to be determined based on status as tenant or labourer [Paras 3-4, 14-16].

Decision – Appeal Allowed – High Court directs Sub-Divisional Officer, Bali to conduct a fresh enquiry – Order of learned Single Judge and prior revenue authority orders set aside – Sub-Divisional Officer to determine appellant’s rights with proper opportunity for evidence and hearing [Para 16-18].

Arbitration Clause Interpretation – Scope and Ambit – Arbitration clause in the agreement, covering disputes “arising out of or in relation to the agreement”, was not restricted solely to the validity of the agreement – Court emphasized the need for purposive interpretation to give effect to all expressions in the clause and avoid redundancy – Forum selection clause read in conjunction with the arbitration clause, indicating all disputes related to the agreement, including validity, were referable to arbitration [Paras 22-28].

Issue of Limitation – Force Majeure Clause Consideration – Petitioners contended that mining operations were halted due to government restrictions, invoking the force majeure clause in the agreement – The court held that the issue of limitation was arguable and required evidence, thus should be decided on merits by the arbitrator [Paras 43-49].

Cause of Action for Arbitration – Court found the cause of action arose from the respondent’s failure to place purchase orders and provide post-dated cheques as per the agreement – The agreement was based on a previous debt and the dispute was not “dead wood” – Arbitration clause intended to cover such disputes [Paras 50-60].

Decision: Application under Section 11 of the Arbitration and Conciliation Act, 1996 allowed – Sole arbitrator appointed to resolve the disputes – All issues left open for consideration by the arbitrator [Paras 61-63].
 

Arbitration – Contract Disputes – Payment for Construction Work – Appeal under Section 37 – Dispute over payment for clearing and grubbing (C&G) and earthwork in embankment below Original Ground Level (OGL) – Arbitral Tribunal awarded payment for embankment work below OGL – Held, payment justified as per contractual terms – Appeal against this issue dismissed [Paras 1-23]. 

Arbitration – Delay in Raising Dispute – Time-Barred Claims – Contract required dispute to be referred to Dispute Review Expert (DRE) within 14 days – Delay in approaching DRE due to its non-existence – Tribunal held delay justified – Held, delay acceptable as DRE was constituted later and appellant participated without objection – No grounds for interference [Paras 24-30]. 

Arbitration – Price Escalation – Application of Price Index – Tribunal applied uniform price index for withheld payments at final bill stage (IPC 78) – Held, consistent with contract – No error in application of price index – Appeal against this issue dismissed [Paras 31-35]. 

Decision: Appeal dismissed – Impugned orders of learned Single Judge upheld – Registry directed to return Bank Guarantee deposited by respondent. 

Electricity Connection - Alternative Remedy - Consumer Grievance Redressal Forum: Petitioner sought court direction for a new electricity connection amidst pending civil suit for property possession and criminal writ for protection. High Court emphasized the statutory framework for consumer grievances under the Electricity Act, providing an effective, expeditious remedy through the Consumer Grievance Redressal Forum and Ombudsman. It underscored that writ petitions should not bypass prescribed statutory remedies unless exceptions apply [Paras 1-17].

Civil Procedure - Application of Order II Rule 2 CPC: Court noted petitioner’s previous suit encompassed similar relief for electricity load restoration, thus Order II Rule 2 CPC barred repetitive litigation in alternative forums. Petitioner’s claim of a new cause of action was rejected as misleading, portraying an artificial distinction to evade statutory process [Paras 8-11].

Decision: Writ petition dismissed - Petitioner directed to seek remedy through statutory consumer grievance mechanisms. Court highlighted procedural integrity and necessity of exhausting statutory remedies before invoking writ jurisdiction [Paras 12-17].