HC upholds cancellation of contract for 650 bedded hospital

Excelsior Correspondent

Srinagar, May 3: High Court while recording that there is no illegality in termination of contract and contract in question was purely of a civil nature between a private individual and the State was not acting in any statutory capacity and dismissed the appeal of a contractor challenging the cancellation of contract for the construction of 650 bedded multi storied hospital.
The Division Bench of Chief Justice Pankaj Mithal and Justice Rajnesh Oswal while dismissing the appeal of contractor and holding the cancellation of award contract said, there is no error or illegality on the part of the writ court in refusing to entertain the writ petition.
Court said the dismissal of petition is right both on the ground that it is not a case which warrants exercise of extraordinary jurisdiction and that there is no ex facie illegality in the termination of contract.
The contractor agency-M/s Vijeta Projects and Infrastructure Ltd was awarded a contract for the construction of a 650 bed multi storied hospital along with Central AC Plan, Hot Water Supply, Fire Hydrant, Sprinkler System, Fire Alarm System and External Services for a Command Hospital in the UT of J&K.
The time period for the execution of the work was 27 months commencing from execution day. It is the case of the appellant that after the site was handed over to him and during the course of execution of the work, due to number of changes in the scope of work as well as in the goods to be consumed by the appellant, the pace of the execution of the work was severely affected.
The authorities vide its letter dated 21.01.2019 intended to terminate the work awarded to the appellant-Contractor if the pace of execution of the work is not increased by the contractor and vide order dated 18.03.2019 cancelled the contract awarded to the appellant. The appellant impugned the said communication through the medium of writ petition.
Then after due consideration of the matter and in view of the arguments put forth by both the parties the Single Judge vide judgment dated 14.01.2020 dismissed the writ petition of the Contractor and the same has been challenged by way of filing of instant appeal.