The Rajasthan High Court recently ruled that a contract terminated by an awardee following due process cannot be subsequently revived or novated by the awardee itself. This decision came in response to a case involving Rajasthan State Mines & Minerals Ltd. (RSMML) and United Coal Carrier (UCC).
The court emphasized that once a contract is terminated following due procedure, it essentially signifies the end of the business agreement. Reviving such a contract, especially without proper legal or administrative justification, is not permissible. The court further held that an administrative order, such as a directive from a chairman, cannot overturn a duly considered decision that impacts the civil or business rights of the contracting parties​​.
This ruling highlights the necessity for transparency and fairness in the administration of contracts by state instrumentalities, ensuring that arbitrary or capricious decisions are not made post-termination of contracts.
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