Case: Smt. Aslhing @ Lhingjanong Vs. L.S. John and Others

While it is true that there was such a contract in existence prior to 30.11.1979, respondent No. 1 wrote a letter on 30.11.1979 to the concerned Executive Engineer stating that he was closing the said contract. The last date for filing nomination was 10.12.1979. It is argued that the contents of the said letter does not have the effect of putting an end to the contract. After going through the contents of the letter i t is absolutely clear that the contractor unilaterally put an end to the contract and informed the Department concerned accordingly and also he had resigned from the contractors list of PWD Manipur. Thus after this letter the contract came t o an end by breach and the contract was no longer subsisting.

Court's reasoning:
In our opinion having regard to the contents of the letter it is not possible to accept the argument of Mr. Rangarajan that the contract was subsisting. The acceptance of the letter by the authorities was unnecessary for putting an end to the contract although the breach may give rise to a cause on action for damages. No other point is raised before us.