Summary
A municipal council suspended a school-furniture work order during the COVID-19 lockdown because schools were closed and funds were insufficient. The High Court directed acceptance of the goods and payment, effectively enforcing the contract. Subsequent inspection revealed that compliant manufactured goods were not readily available, contrary to the supplier’s case. The Court set aside the writ relief, finding disputed facts and adequate reasons for the council’s decision, while preserving a civil claim for proved losses.
Issues
- Whether mandamus could compel performance of the disputed furniture supply contract.
- Whether the circumstances justified interference with the council’s suspension or cancellation of the work order.
Provisions considered
- Article 226, Constitution of IndiaThe High Court should not have effectively granted specific performance on disputed and unsupported assertions concerning manufacture of the contracted goods. (¶ 8-9)
Held
- There was no evidence before the High Court establishing actual manufacture of goods meeting the work order. Whether compliant goods had been manufactured was disputed, and no such goods were readily available on inspection. These circumstances did not justify compelling acceptance and payment. (¶ 5-8)
- The mandamus virtually granted specific performance of the contract. The suppliers should have been relegated to an appropriate civil action for losses or damages. (¶ 8)
- The High Court also failed to appreciate the pandemic-related government resolution, school closures, the council’s insufficient funds and the Education Officer’s report that no further supply steps had been taken. (¶ 8.1)
- The High Court judgment was set aside and the writ petition dismissed. The suppliers remained free to pursue civil proceedings for losses or damages, to be determined independently on the evidence and merits; no damages were awarded by this judgment. (¶ 9)
Result
Council’s appeal allowed; High Court judgment set aside and writ petition dismissed. Civil proceedings for alleged losses or damages expressly preserved. No costs.