Extension in contract

2013 CLC 325 LAHORE-HIGH-COURT-LAHORE Judicial Precedent

Art. 199Constitutional petitionContractual disputeScopeContract, awarding ofExtension in contract

Grievance of petitioner was that concerned authority had extended contract of respondent in clandestine manner, without recourse to public auction

Plea raised by respondent was that dispute between the parties was contractual in nature

Validity

Auctioning or awarding of contract of national assets through surreptitious and clandestine manner not only would prove to be a bane for society but also caused loss to national exchequer worth millions of rupees

Where departmental process for award of a public contract was laden with personal discretion or infected with personal bias, it could not be termed as transparent, fair or lawful process

Mandate of law and jurisdiction of High Court could not be ousted on the mere ground that dispute between parties was contractual in nature

Act of competent authority to grant extension in contract in favour of respondent invited serious objections regarding conduct of the authority and the same could not hold the field

High Court declared extension granted in favour of respondent and subsequent contract in favour of respondent, as null and void and the same was set aside

High Court directed the petitioner to deposit 30% in excess of lease amount for one year with the authority, who would put the matter to open auction

Petition was allowed accordingly.