JUDGEMENT
R.K.MERATHIA, J. -
(1.) HEARD the parties.
(2.) PETITIONERS have prayed for :
(a) Declaring letters dated 25.11.2003 (Annexure -27). 5.12.2003 (Annexure -32), and 18.12.2003 (Annexure -34) issued by the respondent No. 2 as arbitrary, illegal and unconstitutional;
(b) Commanding the respondents to forebear from seeking refund of Rs. 35 lakhs from the petitioners for which works have been carried out and for a direction to pay the remaining balance amount with interest for the work done by the petitioners;
(c) Declaring the threatening of black listing as illegal and arbitrary;
(d) Setting aside the Joint reports (Annexures -27/1 and 32/1) submitted by the experts;
(e) For referring the matter to an independent expert body unconnected with the State for resolving the dispute.
The petitioner No. 1 is a Society registered under the Societies Registration Act and the petitioner No. 2 is it 'sSecretary. They will be referred as petitioner.
On 25th March, 2003, State of Jharkhand entered into a consultancy services
agreement (Annexure -16) with petitioner for strengthening of the database for
developing District -wise Agriculture and Horticulture perspective for 22 districts of
Jharkhand under Macro Management Scheme. The Ministry of Science and Technology
(Department of Science & Technology) New Delhi recommended to the Government of
Jharkhand to involve the TDC -TRC network in implementation of various schemes,
programmes and also replication of the Technology Management Packages in the State
of Jharkhand through the petitioner which the Government of Jharkhand accepted. As
per the terms of agreement, the Government of Jharkhand was required to pay a sum
of Rs. 70,20,000.00 by way of fees to the petitioner for carrying out the services
detailed in the agreement. 50% was to be paid on signing of agreement and rest 20%,
20% and 10% on submission of draft report, detailed draft strategy plan and final report respectively. Some of the terms and conditions are as follows :
"41.1. GoJ shall provide to TDC -SRI such docments/informations/reports as may be reasonably required by TDC -SRI to enable it carry out the services. Goj shall from time to time also furnish such documents/reports/informations in its possession and/or knowledge as it may be considered relevant to the general scope of the assignment as and when such information is received by/available with GoJ. 4.2. GoJ shall facilitate consultations with representative of the various State Deptt and Institution as may be needed from time to time. 4.3. TDC -SRI shall undertake the assignment based upon information furnished to it by GoJ. And TDC -SRI shall be entitled to rely upon such information as authentic. TDC -SRI shall not be required to check the veracity of the information provided and therefore shall not be liable for any deficiency of service due to erroneous or incomplete information received. 4.4. TDC -SRI may seek expert 'sadvice on specific issues, and if GoJ wishes to seek advice of external consultant on specific issues, TDC -SRI shall arranged for the same at specific request of GoJ. GoJ shall also bear the fees payable to/on account of such external consultant engaged by TDC -SRI at the specific request of GoJ. 4.5. All fees payable to TDC -SRI are non -refundable and non -adjustable. 4.6. Service charges wherever applicable to the payments made to TDC -SRI would be borne by GoJ. 4.7. SRI is a non -profit organization as such is not liable to pay income tax hence no deduction at source if applicable. 4.8. In case GoJ desires TDC -SRI to perform any other additional services, TDC -SRI may agree to perform such services on mutually agreed terms. 4.9. TDC -SRI shall have the discretion to adopt such methodology and procedure as it may deem fit for carrying out such assignment. 5. OWNERSHIP : All documents and reports generated by TDC -SRI and delivered to GoJ while carrying out the services shall become the property of GoJ, provided due payment of fees and reimbursables have been made by GoJ to TDC -SRI. TDC -SRI shall in no way be responsible for any defects, damage or loss thereof, once the same has been delivered to GoJ by TDC -SRi. 6. ..... 7. ..... 8. TERMINATION : Either of the parties shall be entitled to terminate this agreement after providing written notice of 30 days to the other party. In the event of such termination, TDC -SRI shall be entitled to receive payment from GoJ for all services performed upto -the -date of such termination and all costs incurred by TDC - SRI as a result of such termination.
(3.) PETITIONER addressed a letter dated 7.7.2003 (Annexure -22) to respondent No. 2 and other authorities of the State of Jharkhand. With this letter, first interim report of the activity undertaken
under the said agreement was submitted. Petitioner asked for, certain further informations from the
different departments/authorities of the Government of Jharkhand as soon as possible, and
suggestions for improvement in the reporting structure. It was further requested that the balance
50% of the amount may be released. Respondent No. 2 by letter dated 18.7.2003 (Annexure -23) expressed his dissatisfaction over the said Interim report and informed petitioner that the Project
will be cancelled and the petitioner will be directed to refund the advance if database of at least 8 -
10 districts is not sent by 30th September, 2003 based on field survey. Petitioner by its letter dated 10.11.2003 (Annexure -26) submitted the corrected database of Lohardaga district. It was mentioned in the said letter that database same is based on sample survey, report received from
the different Government Departments, Census data, 1991 and various reports. Petitioner
requested to instruct the officers to cooperate for successful completion of the Project.;
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