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18 December 2021, Saturday

4 years ago

Cancellation of work order stayed because it was passed in breach of natural justice: Uttarakhand High Court

23 November 2021 | Bharti Airtel Services Limited v. Directorate of Treasuries | Appeal From Order No. 233 of 2021 | Raghvendra Singh Chauhan CJ and Narayan Singh Dhanik J | Uttrakhand High Court | 2021 SCC OnLine Utt 1318

In an appeal from an order dismissing an application under Section 9 ACA, a 2-judge bench of the Uttarakhand High Court has applied the principle of breach of natural justice to stay the operation of cancellation of a work order.

Airtel was declared the lowest bidder in a tender issued by the respondent, and a work order was issued to it. On Reliance’s complaint, the work order was cancelled without being given an opportunity of hearing.

The commercial court dismissed an application filed by Airtel under Section 9 ACA (reasons not stated in HC’s order).

In appeal, the High Court stayed the cancellation observing that:

  1. It is, indeed, a settled principle of law that no adverse order can be passed against a party, without giving that party an opportunity of hearing.
  2. Thus, prima facie, the cancellation order is patently illegal.
  3. Therefore, the appellant has a strong, prima facie, case in its favour since the work order was issued to the appellant, the balance of convenience also lies in favour of the appellant. In case, the work order was to be cancelled, and that too without giving the opportunity of hearing, an irreparable loss will be caused to the appellant.

Read the judgment here.

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Categories: Appealable Orders | Balance of Convenience | Interim Measures by Court | Interim Measures Ordered by Arbitral Tribunal | Irreparable Loss | Natural Justice | Prima Facie Case | Scope of Appeal Under Section 37 (2) (b) ACA | Section 17 ACA | Section 37 (2) (a) ACA | Section 37 ACA | Termination | Termination of Contract

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