Andhra Pradesh High Court
Judges : B.SUDERSHAN REDDY, GHULAM MOHAMMED
UTTAR PRADESH State ROAD TRANSPORT CORPORATION,lucknow - Appellant
Versus
K.L.Hi-Tech Secure Print Ltd., rep.by its Managing Director - Respondent
Decided On : 07-15-04
Constitution of India - Article 226 - Writ petition – Service - Contractual agreement - whether a writ petition under Article 226 is maintainable to resolve the disputes arising out of concluded commercial contractual obligations between a citizen and the State or its instrumentalities even in cases where the contract itself provides for the Forum to resolve the disputes - There is a dispute as to the quantity of books supplied by the respondent/writ petitioner as is evident from the averments made in the counter-affidavit – Held, Having regard to the complex nature of facts and the nature of disputes between the parties and having regard to the agreement between the parties to resolve the disputes by referring the same to the arbitrator, court hold that it is not a fit case for interference by this Court in exercise of its jurisdiction under Art. 226 - This order shall not preclude the respondent/writ petitioner to avail such remedies as may be available to it in which event the same may have to be disposed of uninfluenced by the observations, if any, made in this order - Appeal allowed
( 1 ) THE core question that falls for our consideration is as to whether a writ petition under Article 226 of the Constitution of India is maintainable to resolve the disputes arising out of concluded commercial contractual obligations between a citizen and the State or its instrumentalities even in cases where the contract itself provides for the Forum to resolve the disputes.
( 2 ) SHORN of all the details, the appellant- li. P. State Road Transport Corporation invited tenders in September, 1997 for printing and supply of 72,00,000 blank ticket books and 1,05,300 way bills pads for its use. That in response to the invitation, the respondent/writ petitioner vide dated 20-9-1997 offered to supply the said quantity of blank ticket books and way bills and furnished two demand drafts issued by the canara Bank, Abids Branch, Hyderabad for a sum of Rs. 98. 000/- and Rs. 28,0807- towards the EMD for blank ticket books and way bills respectively. On 29-9-1997 the respondent/wrii petitioner was called for negotiations during which he had agreed to reduce the quoted rate. The appellant- corporation accepted the revised tenders of the respondent/writ petitioner. On 5-11-1997 the appellant-Corporation placed purchase order for supply of 72 lakhs of blank ticket books to be supplied over a period of one year. On the same day, a separate purchase order was also issued for the supply of 35,100 way bill books out of a total quantity of 1,05,300 books. Some controversy had arisen between the parties in the matter of execution of the contract. That an enquiry is said to have been ordered by the government of Uttar Pradesh into the matter of award of this contract to the respondent/ writ petitioner. But the fact remains that several quantities of supplies came to be made by the respondent/writ petitioner under the contract. There is a dispute as to the quantity of books supplied by the respondent/writ petitioner as is evident from the averments made in the counter-affidavit.
( 3 ) THAT on 13-2-1998 the appellant herein informed the respondent/writ petitioner asking it to stop the printing of 8 lakhs blank ticket books and 5000 way bill books representing the balance supplies to be made under purchase order Nos. 275 and 276 dated 5-11-1997. The respondent/writ petitioner, on 16-2-1998 while adverting to the communication, raised dispute and pointed out that it had already printed the balance 8 lakhs blank ticket books and those were ready for despatch. The writ petitioner addressed a letter dated 20-2-1998 to the appellant stating that an amount of rs. 1,30,54,798/- is due from it. The writ petitioner specifically claimed an amount of rs. 17,12,000/- towards the 8 lakhs blank ticket books which were printed and made ready for despatch. Some other disputes were also raised requesting the appellant to refund the earnest money deposits in respect of 1996-97 and 1997-98 contract.
( 4 ) THAT on 22-4-1998 the writ petitioner addressed letter to the appellant-Corporation requesting it to arrange for payment of rs. 1,13,42,798/- due to it including the outstanding dues in respect of 1997-98 contract. The appellant-Corporation on 1-5-1998 replied that the enquiry regarding the award of contract of printing of 2 lakhs blank ticket books was in progress. In the meanwhile, some writ petitions were filed challenging the action of the appellant- corporation with which we are not concerned for the present in this case. The appellant-Corporation vide its letter dated 19-5-1999 intimated the respondent/writ petitioner that the enquiry regarding blank ticket books and way bills will be conducted on 23-6-1999 and requested it to be present on that day. The Managing Director of the company could not attend the enquiry due to his ill-health and requested for time. The matter was adjourned to 27-9-1999. Thereafter the appellant-Corporation vide its letter 20-9-1999 informed the petitioner stating that from out of 8 lakhs blank ticket books sup
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