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2015 (12) TMI 1728 - HC - Indian LawsShow-cause notice for cancellation of contract - Held that:- We are of the considered view that in any case before 31.12.2015, the authorities of the respondents did not have any authority to issue show-cause notice for cancellation of contract unless some new circumstance comes in existence before expiry of such extended period and in that regard, no averments are made in the impugned show cause notice although it appears from the record that the prayer of the petitioner for extending the further period of six months from 31.12.2015 to complete the work was pending before the authority of respondent No. 2. In such premises, the impugned show-cause notice Annexure P-10 deserves to be and is hereby quashed. It is also apparent from the papers placed on the record that even after filing this petition under the authority of interim order of this Court the remaining excavation/digging work of tunnel was/is being carried out by the petitioner but payment of running bills was not made within time to the petitioner to meet the necessary expenses to pay the wages to the labourers and to maintain the deployed machinery and in such premises, it could be said that due to late payment or non-payment of running bills of the petitioner within time it could not manage the requisite infrastructure to carry out the work. In such premises, we direct the authorities to make the regular payment of running bills to the petitioner within time in accordance with the procedure without any hurdle or hindrance to carry out the remaining work within the prescribed and extended period. In the available scenario, it is apparent that due to non-cooperation of the respondents- authorities till some extent and unnecessary process of the show cause notice Annexure P-10 issued contrary to the Departmental communication Annexure P-9 and on account of non-making the payment of the running bills regularly within time, the petitioner could not complete the work of contract within time. It also appears that the excavation work of tunnel is almost near to be completed. The same may be completed within some period and on such reasons, the petitioner appears to be entitled for extension of the period of further six months under the relevant clauses and terms of the contract. Such observation is being made, keeping in view that if by rescinding the contract of the petitioner, the authorities of the respondents proceed to carry out the remaining work through some other agency, then again long time would be required for NIT process and finalization of contract and issuing the work order and in that circumstance, the remaining work of the contract could not be completed in short period and consequently, the public work will suffer and the agriculturists could not get the water for irrigation of their field in early days.
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