Cancellation of Contract on last minute on Political Interference is Arbitrary: Karnataka HC asks State to pay for Film made for Global Investors Meet [Read Order]

“Article 14 is that golden thread that is woventhrough the entire fabric of Constitution of India andevery bead of State action should pass through thatgolden thread. Action of the State cannot be arbitrary.”

The Karnataka High Court directed the State Government to release balance payments due to M/s BBP Studio Virtual Bharat Pvt Ltd, the petitioner, which was appointed to produce a 3D film during the Global Investors Meet, held in November 2022, but the contract was cancelled last minute and film was not showcased at the event. on the sole reason that cancellation of contract on last minute on political interference is arbitrary.

The Government of Karnataka held Global InvestorsMeet titled "InvestKarnataka 2022' and the petitioner was sought to be hired for production of afilm. The third respondent/MarketingCommunication and Advertising Limited which is a subsidiaryunit of Mysore Sales International Limited issued an invitation for the expression of interest for appointment of business associates forthe event.

The petitioner began the creation of the 3D film and later the petitioner was informed about the cancellation of the contract work by a crypticcommunication indicating no reason as to why it was being withdrawn. The respondent failed to respond to the petitioner hence the petitioner has approached the Court.

While the petition was pending an internal committee was constituted to see the film and come to the conclusionas to whether it was in tune with the parameters for it to be displayed in the Investors Meet. After the committeesaw the film it rejected the same, citing it did not meet the required parameters.

A Bench of Justice M Nagaprasanna quashed the communication issued by Marketing Communication and Advertising Ltd, cancelling the work order issued for producing the film to the petitioner.

The Bench noted that “Just before delivery of the final product the contractis cancelled, not on any merit/quality of the film, but on politicalinterference i.e., a communication of the Minister, MurugeshNirani. Therefore, this becomes a classic case wherearbitrariness is writ large.”

The bench expressed "There was no expert or an independent entity to assess the film. Who assessed the film are the persons who needed to toe the lines of the Minister for Industries and Commerce Department. It is the communication of the Minister that led to cancellation of the contract, therefore, the constitution of the committee of interested persons, would inspire no confidence of this court for their act of rejection of the film."

To Read the full text of the Order CLICK HERE

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