IN THE HIGH COURT OF JUDICATURE AT PATNA
CHAKRADHARI SHARAN SINGH, MADHURESH PRASAD, JJ.
S.N Bhobbe Associates Pvt. Ltd representative Mr. Sanjeev Kumar – Appellant
Versus
The State of Bihar through Principal Secretary, Road Construction Department, Patna, Bihar – Respondent
Civil Writ Jurisdiction Case No.3526 of 2021
Decided on : 10-05-2022
Arbitration and Conciliation Act, 1996 – Sections 11 and 12(5) – De-listing of Contractor – Agreement in question has been terminated by BRPNNL – To the extent dispute relates to terms of agreement either in nature of termination of contract or recoverability of any amount by invoking any clause of agreement, there being an arbitration clause, Court not inclined to enter into such dispute – There exists an arbitration clause under the agreement – Section 11 of Arbitration and Conciliation Act lays down procedure for appointment of an Arbitrator, which cannot be said to have become inoperative in present case because of stipulation in arbitration clause of agreement read with Section 12(5) of Act – Writ jurisdiction of High Court is a discretionary remedy, which is normally exercised only when a party has no other remedy – Ordinarily, High Court does not enter into disputed questions of fact to adjudicate upon rival contractual obligations – Court not inclined to entertain petitioner's relief in respect of such disputes which are covered by arbitration clause of agreement – Petitioner shall be at liberty to invoke arbitration clause in respect of disputes arising out of agreement in question in accordance with law. (Paras 15, 16 and 18)
Bihar Contractors Registration Rules, 2007 – Black-listing of Contractor – Before passing an order of black-listing, it is incumbent upon a 'State' within meaning of Article 12 of Constitution to disclose proposed action – However, said ground is no more available to petitioner to assail impugned order of de-listing in facts and circumstances of present case as petitioner was aware about action of black-listing, which was already taken against it and was subsequently interfered with by this Court on the ground of said order being unreasoned – In the light of this Court's order, petitioner was given due opportunity of hearing – Petitioner shall be at liberty to approach BRPNNL for reduction of period for which it has been decided not to be listed as a preferred consultant. (Paras 21 and 22)
JUDGMENT :
CHAKRADHARI SHARAN SINGH, J.
Invoking the writ jurisdiction under Article 226 of the Constitution of India, the petitioner has filed the present writ application seeking the following relief: -
2. It is significant to note at the very outset that judgment in this case was reserved on 22.03.2022 for being delivered on 29.03.2022. However, considering the nature of issues involved in the writ application, it was deemed proper to pass following order on 29.03.2022: -
Let the Bihar Rajya Pul Nirman Nigam Limited file an affidavit stating specifically the consequence of the said order dated 25.03.2019 mentioning clearly as to whether the decision as contained in the said order dated 25.03.2019 shall have the consequence of debarring the petitioner from participating in any tender process in future which may be undertaken by the Respondent-Bihar Rajya Pul Nirman Nigam Limited. The affidavit must be filed by 05.04.2022.
List this matter on 05.04.2022 under the same heading.”
3. The matter was subsequently directed to be listed for judgment on 11.04.2022. However, in the meanwhile, the respondent Bihar Rajya Pul Nirman Nigam Limited (‘BRPNNL’ for short) decided to modify its impugned orders 25.03.2019 and 26.06.2020 by issuing another order dated 08.04.2022. The said order dated 08.04.2022 has been brought on record by way of supplementary affidavit. Considering the peculiar facts and circumstances of the case and the subsequent development, the Court, by an order dated 11.04.2022 recalled the earlier order, whereby the judgment was reserved, in the interest of justice. The matter was subsequently re-heard on 26.04.2022. In the light of this Court's order dated 26.04.2022, this case has been placed for judgment today.
4. The petitioner, it is stated, is an architectural and design consultant firm having international recognition. It was issued a work order by the BRPNNL for preparing the design of a flyover bridge from R-Block to G.P.O., Patna on 10.10.2006. Subsequently, an agreement was entered into between the petitioner and BRPNNL on 16.03.2007, with 10.10.2006 as the date of the commencement of the work, i.e., the date on which the work order was issued. The construction work of the said flyover had begun on the basis of partial design and drawing submitted by the petitioner. During the course of the execution of the work, certain discrepancies in the design submitted by the petitioner were noticed. The said deficiencies in design were brought to the notice of the petitioner by letter dated 28.03.2017, which has been brought on record by way of Annexure-5 to the writ application. In view of the nature of deficiencies, so detected, the petitioner was asked to get the practical difficulties arising out of defective design resolved immediately after sending an experienced designer of the petitioner’s company, failing which the BRPNNL would be constrained to take appropriate action in terms of the agreement. By a subsequent letter dated 30.03.2017 addressed to the Managing Director of the petitioner-company issued by the Senior Project Engineer, Special Works Division, BRPNNL, it was informed
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