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2020 Supreme(Bom) 899

IN THE HIGH COURT OF BOMBAY
R.D. Dhanuka, Madhav Jamdar, JJ.
K.I.P.L. Vistacore Infra Projects J V - Appellant
Versus
Ichalkaranjee Municipal Council Office At Council Office, Ichalkaranji Dist Kolhapur - Respondent
Writ Petition (Stamp) No. 4077 of 2020, 4096 of 2020; Interim Application No. 1 of 2020
Decided On : 27-10-2020

Advocates Appeared:
Y.S. Jahagirdar, Advocate, Ajit J Kenjale, Advocate, A.Y. Sakhare, Advocate, Akshay Shinde, Advocate, Vaibhav Sugdare, Advocate, K.S. Thorat, Advocate, Surel S Shah, Advocate, A.P. Vanarase, Advocate, U.R. Mankapure, Advocate

Headnote:(A) Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships Act, 1965 - Section 308(1), Section 81(10), Section 81(15) - Writ Petition under Article 226 - Contract awarded for sewerage project canceled on grounds of delay - Petitioner alleged administrative and jurisdictional lapses in cancellation process - Court ruled that Collector's suspension of Council's Resolution mandating extension for delay was illegal for non-compliance with mandatory provisions and lack of jurisdiction over private complaints - The resolution to terminate the contract was also deemed illegal due to procedural violations. (Paras 25-57)

(B) Public law principles - Distinction between public interest and private contractual rights - Writ Court can intervene in cases involving public interest and administrative action that violates statutory provisions, especially when basic principles of natural justice are not adhered to. (Paras 51-56)

Table of Content
1. petitioner's request to quash council actions. (Para 1 , 2)
2. details of contract and its extensions. (Para 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17)
3. arguments on procedural compliance. (Para 19 , 21 , 22)
4. legal observations on powers of the collector. (Para 25 , 30 , 32 , 37 , 39)
5. final ruling on the case. (Para 54 , 57)

JUDGMENT

R.D. Dhanuka, J. - By Writ Petition (St.) No.4077 of 2020 filed under Article 226 of the Constitution of India, the petitioner has prayed for Writ of Certiorari for setting aside the impugned order dated 26th February 2020 passed by the Chief Officer, Ichalkaranjee Municipal Council cancelling, revoking and concluding the contract with the petitioner and seeks an order and direction against the respondents to decide the representation of the petitioner dated 4th February 2020 and to allow the petitioner to complete the project. The petitioner has also impugned the Resolution No.252 dated 28th February 2020 passed by the Ichalkaranjee Municipal Council and prays for quashing and setting aside the impugned Communication dated 9th March 2020 issued by the Chief Officer, Ichalkarnajee Municipal Council in furtherance of the Resolution dated 28th February 2020.

2. By Writ Petition (St.) No.4096 of 2020, the petitioner prays for quashing and setting aside the order dated 10th February 2020 passed by the District Collector, Kolhapur under Section 308 of the Maharashtra Municipal Councils, Nagar Panchayat and Industrial Township Act, 1965 (hereinafter referred to as "the said Act) thereby ordering to suspend the Resolution dated 31st December 2019 passed by the Ichalkaranjee Municipal Council granting extension to the contract awarded to the petitioner till 30th June 2020. Interim Application No.1 of 2020 is filed by Mr.Prakash Maruti Morbale in Writ Petition (St.) No.4096 of 2020 inter alia praying for impleadment of the applicant as one of the respondents. By consent of parties, both these petitions and also the interim application were heard together finally and are being disposed of by a common order. Some of the relevant facts for the purpose of deciding the aforesaid writ petitions and the interim application are as under :-

3. Some time in the year 2014, Ichalkaranjee Municipal Council (hereinafter referred to as "Municipal Council") invited tender for the Development of Underground Sewerage Scheme in Ichalkaranji City which included designing, providing sewere network, constructing, erecting and commissioning of intermediate Sewage Pumping Stations, raising main, 10 + 8 MLD capacity Sewage Treatment Plants based on advanced technology under Urban Infrastructure Development Scheme for Small and Medium Towns (hereinafter referred to as "the said work").

4. Pursuant to the said invitation, Joint Venture of Khillare Infrastructure Pvt. Ltd. and Vistacore Infra Projects known as K.I.P.L. Vistacore Infra Projects J.V. submitted their bid for the said work. On 25th August 2014, an agreement was entered into between the petitioner J.V. and the said Municipal Council thereby awarding the said contract to the said J.V. On 28th August 2014, the said Municipal Council issued a work order in favour of the said J.V. The stipulated period of completion of the said work according to the said work was 24 months i.e. till 27th August 2016. On 9th August 2016, the Municipal Council extended the original period by 18 months i.e. till 27th February 2018. It is the case of the Municipal Council that the petitioner failed to complete the work even within the extended period. The said Municipal Council granted further extension for completion of the work upto 4th February 2019 however by imposing penalty of Rs.5,100/- per day on the petitioner till completion of the said work. It is the case of the Municipal Council that the petitioner had challenged levy of penalty before the learned Collector, Kolhapur but was unsuccessful.

5. On the other hand, it is the case of the petitio

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