SMT. ASLHING @ LHINGJANQNGversusL.S. JOHN & ORS.
- Citation
- 1983 INSC 180
- Decided
- 22 November 1983
- Disposal
- Dismissed
- Bench
- S MURTAZA FAZAL ALI
Holding
The contract was deemed terminated by the respondent's unilateral notice of closure, and acceptance by the authorities was unnecessary for its termination.
Summary
The appellant challenged the respondent's claim that a contract with the Government for widening a road was still subsisting at the time the respondent filed his nomination paper. The respondent had sent a letter on 30 November 1979 to the Executive Engineer stating that he was closing the contract and had resigned from the contractor's list. The question before the Supreme Court was whether the contract remained in force until the letter was accepted by the authorities, which would affect the respondent's eligibility. The Court held that the respondent's unilateral notice of termination constituted a breach that ended the contract, and acceptance by the Government was not necessary to terminate the agreement, though the breach could give rise to a claim for damages. Consequently, the appeal was dismissed, leaving the lower court's decision intact.
Issues considered
- Whether a contract remains subsisting when one party unilaterally notifies termination by letter.
- Whether acceptance of the termination notice by the other party is required for the contract to be considered ended.
Subjects
Judgment
863
SMT; ASLHING @ LHINGJANQNG
.A
v.
. L.S. JOHN & ORS.
•
November 22, 1983 B
[S. MURTAZA FAZAL ALI, 0. CHINNAPPA REDDY AND
E.S. VBNKATARAMIAH, JJ;) ·
CoiJtract- ft'heti a party writes to the opposite party that it is closing the
contr"act, does the contraci_ stlbsist ? C
The respondent who was a party to a subsisting contract with t~e
Government for·widening of a road W-rotc a letter tO the concerned Executive
Engineer st~ti~g that he was closing the said coniract. The appellant contended
that the contents of the letter did riot have the effect of putting an ·end to the
contract D
Dismissing the appeal,
HELP: After the letter, the contract came to an· end by· breach and was
no longer subsisting. Acceptance of the]etter by the authorities was unnecessary
for putting an end to the contract although the breach may give rise to an
actipn for damages, [.864 B-C] E
CIVIL APPELLATE. JURISDICTION : Civil Appeal No: 1189 of
1982. ,
•
·From the Judgment and Order dated the 18th December, 1981 F
of the dauhati High C.ourt in Election Petition No. 1 of 1980.
S. Rangarajan, S.K. Nandy and S. Parikh for the Appellant:
A.K. Nag for the Respondent.
G
The Judgme.nt of the Court was delivered by
FAZAL ALJ, J. In this election appeal "the only point for
determination is whether at the .time whe.n respondent No. I. filed his
nomination paper he held a subsisting contract with the GovT:rnmcnt
for widening the PLP road. While it is true th~t there was such a
H
contract in existence prior to 30.11.1979, respondent N9. 1 wrote a
' . . ,
864 , SUPREME COURT REPORTS {1984) 1 s.c.R. ·
letter on 30.11.1979 to.the concerned Executive Engineer stating that· .
A he was closing the said contract. The last date for filing nomination
was 10.12.1979. It is argued that tl.ie contents of the said letter·
~~~the~~-~m~~~~~-~.
going through the contents.of the letter it is absolutely clear. t~at the
l"
)
. contractor unila~rly put an end to the contract and informed the
. Ii , .Department concerned accordingly· and also he had resigned from the
. contractor's list of PWD Manlpur. Thus after this 1¢tter the con-
tract came to an end by breac.h and the contract was no longer subsis· -i.
ting. Mr. Rangarajan has submitted some very nice and delicate·
questions for consideratlori. One of them being that until and unless
the letter is accepted by the Authority the contract would contin\le
c and thus the respondent would suffer from the disqualification. In
our opinion having regard to the contents of the· letter it is not
possible.to accept the argument of Mr. Rangarajan that the contract
-~
was subsisting. · The· acceptance of the letter by. the authorities was
unnecessary for putting an end to the contract although the breach
may give dse to a cause, on action for damages .. No· other point is
D •raised before us. -We do not find any merit in this appeal and it is
dismissed without any order as to costs . ..
H.l.. C. Appeal dismissed. ,_ .. ''
. -'\ .
•
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