- (1.) The State has handed over copies of two letters dated November 14, 2011 and February 15, 2012 issued by the District Magistrate, North 24-Parganas to the Principal Secretary, Department of Women & Child Development & Social Welfare. Both letters recommend the relevant Integrated Child Development Scheme project to be taken up by the Government from the NGOs inter alia as "there are gross irregularities and functioning is not smooth." There are several other reasons indicated that would, probably, justify any Government action against the NGOs if they were found to be correct, but it is not necessary to go into such matters at this stage. The grievance of the petitioner society is that the Secretary to the department, by a unilateral order of May 20, 2013, decided that the permission granted to the petitioner society to implement the ICDS project would not be renewed. If the letter or the memorandum had stopped there, an argument may have been possible on the part of the State by referring to Clause 15 of the agreement between the petitioner society and the Government for the implementation of the project. However, the Secretary asserted that the "performance of the project run by the said NGO is not satisfactory" and went on to add that there were "serious nature of irregularities...committed by the NGO."
(2.) Clause 15 of the relevant agreement dated September 9, 1998 that the State refers to, provides as follows: Notwithstanding anything contained in these presents, the Governor reserves the right to terminate the present agreement at any time before the date of termination of this agreement without assigning any reason thereto and to take over the aforesaid ICDS Project in his own part for the effective running and implementation of the programmes of said ICDS Project.
(3.) It is too late in the day, especially in our constitutional scheme of things and the wide sweep of Articles 14, 19 and 301 of the Constitution, for the State or any instrumentality of the State to suggest that the State or any instrumentality of the State may deign to terminate a contract or renege thereon with such gay abandon as a private person in a private arrangement may. The Constitution mandates all action of the State and its instrumentalities to be informed by reason and be reasonable and without discrimination. For sure, the State and its instrumentalities are allowed adequate elbow-room as a contracting party to not enter into contractual relationships or resile therefrom, provided the decision is not arbitrary or unconscionable and a fair procedure is adopted.;