TMI Blog2013 (2) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... dismissing Writ Petition No.720 of 2007 affirmed. Multiple rounds of litigation between the parties have been aptly recapitulated in the order passed by the Single Judge of the High Court in Writ Petition No.720/2007 and refreshed by the Division Bench of the High Court while dismissing the writ appeal filed against the same. It is in that view unnecessary for us to recount the entire factual background in which the controversy in this appeal arises except to the extent it is absolutely necessary for us to do so for the disposal of this appeal. 3. National Highway Authority of India Ltd. (NHAI for short) invited tenders for award of a contract for collection of fee for the use of National Highways from Km. 61.00 to Km.103 on Morena-Gwalior Section of National Highway No.3. Appellant too among others made an offer which was accepted by the NHAI in terms of its letter dated 14th March, 2006 asking the appellant to submit a demand draft for a sum of ₹ 2,20,00,125/- towards performance security and a bank guarantee for a similar amount to be valid for a period of 15 months for the due observance of the terms and conditions contained in the contract. Both these requirements we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port submitted by the agency deployed by the respondent to collect material regarding overcharging of fee and other violations committed by the appellant. 6. Feeling aggrieved by the order passed by the Single Judge of the High Court the appellant preferred Writ Appeal No.491 of 2007 which was heard and dismissed by a Division Bench of the High Court by its order dated 8th August, 2007. The present appeal assails the correctness of the said order. 7. We have heard learned counsel for the parties at some length who have taken us through the record including the orders passed by the High Court from time to time. 8. It was argued on behalf of the appellant that termination of the contract between the parties was legally bad not only because the principles of natural justice requiring a fair hearing to the appellant were not complied with but also because there was no real basis for the respondent-authority to hold that the appellant had committed any breach of the terms and conditions of the contract warranting its termination. We find no merit in either one of the contentions. The reasons are not far to see. Rules of natural justice, it is by now fairly well settled, are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, I do not derive much assistance from the definitions of natural justice which have been from time to time used, but, whatever standard is adopted, one essential is that the person concerned should have a reasonable opportunity of presenting his case. 10. In Keshav Mills Co Ltd. v. Union of India, (1973) 1 SCC 380 this Court extracted with approval the observations of Lord Reid in Ridge v. Baldwin, (1963) 2 W.L.R. 935 and said: 8. We do not think it either feasible or even desirable to lay down any fixed or rigorous yard-stick in this manner. The concept of natural justice cannot be put into a straight-jacket. It is futile, therefore, to look for definitions or standards of natural justice from various decisions and then try to apply them to the facts of any given case. The only essential point that has to be kept in mind in all cases is that the person concerned should have a reasonable opportunity of presenting his case and that the administrative authority concerned should act fairly, impartially and reasonably. Where administrative officers are concerned, the duty is not so much to act judicially as to act fairly. See, for instance, the observations of Lord Parker ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... do a great right after all, it is permissible sometimes to do a little wrong . [Per Mukharji, C.J. in Charan Lal Sahu v. Union of India, (Bhopal Gas Disaster) (1990) 1 SCC 613, at 705, para 124.] While interpreting legal provisions, a court of law cannot be unmindful of the hard realities of life. In our opinion, the approach of the court in dealing with such cases should be pragmatic rather than pedantic, realistic rather than doctrinaire, functional rather than formal and practical rather than precedential . xxx xxx xxx xxx xxx xxx 39. Decision of this Court in S.L. Jagmohan, (1980) 4 SCC 379, whereupon Mr Rao placed strong reliance to contend that non- observance of principle of natural justice itself causes prejudice or the same should not be read as it causes difficulty of prejudice , cannot be said to be applicable in the instant case. The principles of natural justice as noticed hereinbefore, have undergone a sea change. In view of the decisions of this Court in State Bank of Patiala v. S.K. Sharma, (1996) 3 SCC 364 and Rajendra Singh v. State of M.P., (1996) 5 SCC 460 the principle of law is that some real prejudice must have been caused to the complainant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y technical infringement of natural justice. The requirements of natural justice must depend on the facts and circumstances of the case, the nature of the inquiry, the rules under which the tribunal is acting, the subject-matter to be dealt with and so forth. 15. Coming to the case at hand we find that the termination of the contract between the parties was preceded by a show-cause notice issued to the appellant and a hearing provided to it by the competent authority. The show-cause notice issued to the appellant on 24th November, 2006 enclosed with it all relevant documents including the complaints received against the appellant from various quarters and a copy of the report submitted by the agency engaged for verifying the allegations against the appellant. The appellant had unsuccessfully challenged the show-cause notice in Writ Petition No.6338 of 2006, before the High Court. The High Court had while refusing to interfere in the matter directed the appellant to submit a reply to the notice. The appellant had accordingly appeared before the authority on 12th January, 2007, submitted its written statement and was heard in support of its case that it had not committed any defa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is no material available on record on the basis of which the report submitted by the agency as contained in Annexure R/7 can be discarded by this Court, this report cannot be rejected merely on the ground that it is collected behind the back of the petitioner. The nature of irregularity committed by the petitioner can be detected only if a discreet enquiry in the manner as done by the respondents have acted in a manner which is violative of the principle of natural justice. The report submitted was placed before the petitioner he was given opportunity of submitting his defence and explanation both in writing and personally. Records indicated that petitioner was unable to produce any cogent material to show that this report is unsustainable and cannot be relied upon. 17. In the appeal preferred against the above order, the appellant had made a grievance only in regard to two aspects covered by question nos. (III) and (V) , formulated by the Single Judge in the following words: (III) Whether the action for termination of the contract is done by the competent authority and whether cancellation of the contract is based on proof of breach committed by the petitioner? (V) Whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... done so. It has given partial relief to the appellant to the extent of holding that the invocation of the bank guarantee was not justified in the light of the forfeiture of performance security and the amount of penalty. In any event we see no room for interfering with the order passed by the High Court in exercise of our jurisdiction under Article 136 of the Constitution of India which too is both extraordinary and discretionary in nature. We may in this connection refer to the following passage from Halsbury s Laws of England Fourth Edition Vol.-16 pages 874-876, which sums up the legal position in England as to the right of a party who has not come to the Court with perfect propriety of conduct and with clean hands, to claim an equitable relief. 1305. He who comes into equity must come with clean hands. A court of equity refuses relief to a plaintiff whose conduct in regard to the subject matter of the litigation has been improper. This was formerly expressed by the maxim he who has committed iniquity shall not have equity , and relief was refused where a transaction was based on the plaintiff's fraud or misrepresentation, or where the plaintiff sought to enforce a secur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for recovery of any further amount was in that view held to be unjustified by the High Court. 23. There is no appeal by the Authority against that part of the judgment, although it was argued on behalf of the Authority that in terms of clause 18(b) of the contract, the Authority had the right to estimate the excess of collection by the appellant-contractor and recover the same from it. Clause 18 may be extracted in extenso at this stage: 18. Penalty for charging excess fee : a) In case, it is observed and/or established to the satisfaction of the Authority that the Contractor has charged fee in excess of the prescribed rate, the Authority may terminate the contract forthwith and/or may impose a penalty of Rs. One lakh or an amount equivalent of one day s fee receivable by the Authority, which ever is higher and may provide the Contractor another opportunity of continuing the Fee Collection. However, in no case, the authority shall afford more than one opportunity to the Contractor. b) The Authority also, reserves the right to estimate the excess collection of fee made by the Contractor and recover the same, which will be over and above the penalty imposed and to be rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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