Lt. Col. (Retd.) K.S.Ahluwalia vs Indraprastha Gas Ltd.
2009 Latest Caselaw 1751 Del

*            IN THE HIGH COURT OF DELHI AT NEW DELHI

                                                       Date of Reserve: April 02, 2009
                                                          Date of Order: April 29, 2009
+ OMP 523/2008
%                                                              29.04.2009
    Lt. Col. (retd.) K.S. Ahluwalia                     ...Petitioner
    Through : Mr.S. N. Kumar, Sr. Adv. with Mr. K.B. Soni, Advocates

        Versus

        Indraprashta Gas Ltd.                              ...Respondent
        Through: Mr. K.K. Rai, Sr. Adv. with Mr. S.K. Pandey, Advocates


        JUSTICE SHIV NARAYAN DHINGRA

1.      Whether reporters of local papers may be allowed to see the judgment? Yes.

2.      To be referred to the reporter or not?                                           Yes.

3.      Whether judgment should be reported in Digest?                                   Yes.


        JUDGMENT

1. This petition under Section 9 of the Arbitration & Conciliation Act, 1996

(for short, "the Act") has been made by the petitioner who was awarded a

contract by the respondent for management and for operating services at

GL/CNG Station at Sarita Vihar and Jasola, New Delhi. The contract was

initially granted in April 2002. It was renewed from time to time and the last

renewal was done in April, 2006 valid up to 5 th April 2007. In April 2007, the

contract was not renewed and the applicant filed a writ petition before this

Court being WP(C) No.2086 of 2007. This writ petition was disposed of vide

order dated 18th September, 2008 keeping in view the fact that the contract

between the parties contained an arbitration clause being Clause No.12 and

the petitioner sought time from the Court to move an application/petition

under Section 9 of the Act. At the time of entertaining the writ petition, a

status quo order was passed by the Writ Court, which continued up to its

disposal and the respondent gave an assurance to this Court that it will

OMP 523/2008 Lt. Col. (retd.) K.S. Ahluwalia v. Indraprashta Gas Ltd. Page 1 Of 3 maintain status quo for further two weeks.

2. The agreement between the parties contained following clause:

10. Termination of Agreement The company may, without prejudice to any other remedy for breach of Agreement, by written notice of default sent to the OPERATOR, terminate the Agreement in whole or in part;

i) if the OPERATOR fails to deliver any or all of the services/ workers within the time period(s) specified in the Agreement or

ii) if the OPERATOR fails to perform any other obligation (s) under the Agreement; and

the Company shall reserve the right, at any time during the period of the Agreement, to terminate it by giving one month notice to OPERATOR, and upon expiry of such notice period the OPERATOR shall vacate the site/ office occupied by him immediately. Upon termination of the agreement for any reason whatsoever, the OPERATOR or any person engaged by the OPERATOR shall cease to have any right thereafter or remain within the premises or to operate the facilities thereon. On termination of the Agreement and while handing over the station to the Company, the OPERATOR shall ensure that all the Company assets are in good condition.

Upon the termination of the Agreement the staff employed by the OPERATOR will have no claim whatsoever for employment temporary or permanent in the Company.

All dues payable to the staff employed by the OPERATOR will be settled by the OPERATOR and no claim of the staff shall be entertained by the Company. ...."

The agreement also contained a Clause for resolving of disputes which

provided for referring the disputes to Arbitration.

3. By this application petitioner has prayed that this Court should

continue status quo order till the Arbitral proceedings are finally disposed of.

OMP 523/2008 Lt. Col. (retd.) K.S. Ahluwalia v. Indraprashta Gas Ltd. Page 2 Of 3 That implies a contract that has come to an end by efflux of time, should be

continued by Court by way of interim injunction. The petitioner has already

enjoyed such extension of contract on the basis of „status quo‟ order for

about two years.

4. The petitioner had entered into a commercial contract for managing

and operating the CNG pump for a period of one year in the year 2002. The

contract was renewed on the same terms and conditions from year to year,

for five years. The renewal did not create a vested right in the petitioner for

renewal of the contract in perpetuity. The contract between the parties is a

commercial relationship and comes to an end on expiry of its period. The

rights and obligations of the parties are to be determined on the basis of the

terms of contract between the parties. Where a contract has been terminated

or has come to an end on its expiry, the Court while entertaining an

application under Section 9 of the Act, cannot restore the contract or write a

new contract between the parties. It is not within the jurisdiction of the Court

to renew a contract between the parties. Section 9 does not permit a Court to

thrust services of someone on the employer, who does not want the services

of the contractor. If by virtue of termination of the contract or by virtue of

expiry of contract, any damages have been suffered by the petitioner, the

same shall be considered by the Arbitrator. Under Section 9, a contract which

has expired or which has been terminated, cannot be kept alive in perpetuity

year after year by the Court. I find no force in this petition. The petition is

hereby dismissed. No orders as to costs.

April 29, 2009                                           SHIV NARAYAN DHINGRA J.
rd

OMP 523/2008 Lt. Col. (retd.) K.S. Ahluwalia v. Indraprashta Gas Ltd. Page 3 Of 3