Supreme Court · 2023 INSC 289 · Decided 24 March 2023
The State of Odisha & ORS. v. Radheshyam Agrawal
- Court
- Supreme Court of India
- Citation
- 2023 INSC 289 · [2023] 3 S.C.R. 653
- Case number
- CIVIL APPEAL No. 4934/2022
- Decided
- 24 March 2023
- Bench
- M.R. SHAH, B.V. NAGARATHNA (2-judge bench)
- Outcome
- Dismissed
- Case type
- Civil
Headnote
Contract - Levy of Penalty - When not justified - Penalty imposed on respondents-Contractors while granting extension of time to complete the work awarded - Held: Penalty was levied by the State Government invoking Clause 3.5.5(v) of the Odisha Public Work Department Code where the contract is terminated - Here, it is not a case of termination of the contract - Therefore, Clause 3.5.5(v) shall not be applicable at all - Neither the contract nor the OPWD code provides for imposition of penalty while extending the contract - However, in a
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