Anil Kumar vs The State of Jharkhand and Others

The issue of compliance of work by the contractor became serious in view of the contrary statement given by the contractor and the State Government and this Court observed on 21st December, 2010 that in case the contractor will not complete the work by 15th January, 2011 the State will be free to cancel the contract of the contractor.

Learned Counsel for the State submitted that State has cancelled the contract of the contractor on 09.02.2011 and now they have floated the tender on 7th May, 2011 and in the tender cost of the work has been shown as Rs. 112.504 Lakhs.

Learned Counsel appearing for the contractor submitted that the work of only twenty lakhs is pending and that can be completed by the present contractor within a period of 45 days whereas the State has given nine months time in the tender for the completion of the work.

Since there is a huge difference between the period as well as the amount and since the contractor undertakes with full liability and in consequence of failure to complete the work within 45 days, therefore, we deem it proper to suspend the order of cancellation of the contract passed by the State for the purpose of completion of work to the present contractor though he did not complete the work in time on earlier occasion inspite of the order passed by this Court.

Learned Counsel for the contractor submitted that the contractor will complete the work and take all responsibilities of any damages which may be awarded to the State Government by this Court relating to this contract given and ignoring the additional work if it has been floated by the State. We are making it clear that this order is passed on the submission made by the learned Counsel for the contractor that he will complete the work as given under the contract within a period of 45 days with liability of his paying the damages for non-completion of work within 45 days and we are only putting the order of cancellation of the contract in abeyance and are not canceling the order of cancellation of contract.

The other issue with respect to any claim of the State or the contract with respect to the right of the State to cancel the contract and recover damages and claim of contractor of wrongful cancellation of the contract are not being examined by this Court at this Stage.

In view of the undertaking given by the learned Counsel for the contractor on behalf of the contractor, the State Government is directed to permit the contractor to complete the work within 45 days from 21st May, 2011.

In the meanwhile the proceeding of inviting the tenders shall be kept in abeyance and if any offer has been received by the State Government in response to the tender they may be kept in sealed cover only.

Put up the matter on 27th June, 2011 so as to know the progress of the work and if any modification is required because of the non-start of the work or non-permitting of the work the parties will be free to move the application.