KRISHNA AND COMPANY Vs. GOVT OF ANDHRA PRADESH
HIGH COURT OF ANDHRA PRADESH
KRISHNA AND COMPANY
GOVERNMENT OF ANDHRA PRADESH
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B.Subhashan Reddy, J. -
(1.)This Writ Petition raises an important question of law as to whether the theory of frustration of contract and the consequences arising thereto can be invoked and whether the High Court can entertain such a plea and grant the relief in exercise of its extraordinary power under Article 226 of the Constitution of India.
(2.)The facts briefly stated, thus, are : The petitioner is a Company established in the year 1981 and deals in sand quarrying operations. Pursuant to the auction held at Nalgonda on 11-5-1988, pertaining to leasehold rights of sand quarry at Jedcherla, Midgil and Timmajipet Mandals of Malia-bubnagar District, the petitioner-Company made a bid and was successful tenderer for the amounts of Rs.27,000/-, Rs.6,300/- and Rs.6,300/- respectively. The said bids were accepted and the amounts whatever due and payable were paid by the petitioner. The same was crystallised into an agreement, inter se, the petitioner and the 3rd respondent on 9-8-1988, the tenure of the lease being one year and thus, expiring on 9-8-1989.
(3.)It is the case of the petitioner that even though no approach roads were there to reach the spots for sand quarrying, acting upon the leases granted to it, with much expenditure and labour, the roads were laid so as loanable it to carry the transport vehicles for the purpose of quarrying and loading the sand into them.
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