Case Note & Summary
The petitioner, Kiran S/o Chandrakant Maid, a civil contractor, participated in an e-tender process initiated by the Collector, Jalgaon, and was awarded a work order dated 18.01.2014 for extraction of sand from the bed of river Tapi at Spot Nos. 3 and 4 of Gut No. 28, village Jallod, Taluka Amalner. The work order permitted extraction of 12862 brass sand by 30.09.2014. The petitioner deposited Rs. 1,08,99,999/- for the extraction. However, due to two reasons, the petitioner could extract only 4291 brass sand by the end of the tenure. First, on 24.06.2014, the Additional Collector, Jalgaon passed an order staying the contract due to complaints by villagers, which was lifted on 11.07.2014. Second, from 22.07.2014, the river Tapi flooded due to release of water from a reservoir, making extraction impossible. The petitioner claimed proportionate refund of the amount paid for the unextracted sand. The respondents, State of Maharashtra and others, opposed the claim. The court framed the issue of whether flooding due to release of water from a reservoir can be considered a natural calamity for refund purposes. The court held that the flooding was an act of God and beyond the contractor's control, thus constituting a natural calamity. The court allowed the petition, directing the respondents to refund the proportionate amount for the unextracted sand, i.e., for 8571 brass (12862 - 4291), within a reasonable time.
Headnote
A) Contract Law - Government Contracts - Proportionate Refund - Sand Extraction - The petitioner, a civil contractor, was awarded a work order for extraction of sand from river Tapi but could extract only 4291 brass out of 12862 brass due to a stay order and flooding of the river. The court held that the flooding of the river due to release of water from a reservoir constitutes a 'natural calamity' entitling the contractor to proportionate refund of the amount paid for the unextracted sand. (Paras 3-5, 7-8) B) Natural Calamity - Flooding - Release of Water from Reservoir - The court considered whether flooding of river Tapi due to release of water from a reservoir can be treated as a natural calamity. It held that such flooding is an act of God and beyond the control of the contractor, thus qualifying as a natural calamity for the purpose of refund. (Paras 3, 7-8)
Issue of Consideration
Whether a contractor is entitled to proportionate refund of the amount paid for extraction of sand when unable to extract the permissible quantity within the stipulated period, and whether flooding of a river due to release of water from a reservoir can be considered a 'natural calamity' for the purposes of grant of such refund.
Final Decision
The court allowed the petition, directing the respondents to refund the proportionate amount for the unextracted sand (8571 brass) to the petitioner within a reasonable time.
Law Points
- Proportionate refund
- natural calamity
- sand extraction contract
- force majeure
- government contract
