Special Leave Petition (C) Nos. 17756 of 2007 and 4323-4324 of 2008. Case: 1. Garib Nawaz Corporation, 2. Anees Ahmed Vs 1. State of Maharashtra and Ors., 2. Subhash R. Acharya and Ors.. Supreme Court (India)
| Case Number | Special Leave Petition (C) Nos. 17756 of 2007 and 4323-4324 of 2008 |
| Judges | R.V. Raveendran and A.K. Patnaik, JJ. |
| Issue | Constitution of India - Article 136 |
| Citation | AIR 2011 SC 88, 2011 (1) BomCR 291 |
| Judgement Date | December 06, 2010 |
| Court | Supreme Court (India) |
Order:
A. K. Patnaik, J.
1. These special leave petitions under Article 136 of the Constitution are directed against the judgment and order dated 16.08.2007 of the Division Bench of the Bombay High Court in Writ Petition No. 580 of 2007.
2. The relevant facts very briefly are that on 30.12.2001 the Chief Executive Officer, Aarey Milk Colony, Goregaon (East), Mumbai (Respondent No. 4) invited tenders for recovery of toll from private vehicles making use of the Aarey Road at the three check posts at Goregaon, Marol and Powai of Aarey Milk Colony and amongst the tenderers, M/s Garib Nawaz Corporation was awarded the contract on 16.02.2002. Accordingly, an agreement was executed between M/s Garib Nawaz Corporation on the one hand and Government of Maharashtra and the Chief Executive Officer, Aarey Milk Vasahat, Goregaon (E), Mumbai, on the other hand. Under the agreement, M/s Garib Nawaz Corporation was to collect toll from private vehicles entering into the Aarey Milk Vasahat at the three check posts and deposit with the Government a sum of Rs. 16,58,00,000/- for three years from 16.02.2005. Under the agreement, M/s Garib Nawaz Corporation was also to deposit 5% of the aforesaid amount as security deposit which worked out to Rs. 82,90,000/-. Condition No. 5 of the agreement further provided that if the contractor is unable to carry out the contract, the contract will be cancelled and the security deposit amount will not be refunded to the contractor and if a new contractor is appointed for the work for a lesser amount, the differential amount will be recovered by the Government as a loss out of the security deposit amount. Pursuant to the agreement, M/s Garib Nawaz Corporation carried out the work of recovering tolls from private vehicles for a period of three years and on expiry of the period of three years, was granted extension for a further period of three years from 17.02.2005 on the same terms and conditions with two modifications. The royalty was increased by 5% and condition No. 5 was relaxed. Shri Subhash R. Acharya, Respondent in the two special leave petitions, challenged the extension of three years granted to M/s Garib Nawaz Corporation in Writ Petition No. 580 of 2007 before the Bombay High Court contending inter alia that the orders of the authorities granting the extension for three years to M/s Garib Nawaz Corporation to collect toll and relaxing condition No. 5 of the agreement were clearly arbitrary and had caused a huge...
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