IN THE HIGH COURT AT CALCUTTA
SABYASACHI BHATTACHARYYA, J.
M/s Goswami Electrical and Construction - Petitioner
Versus
West Bengal State Electricity Distribution Company Limited and others - Respondents
W.P.A. No. 16060 of 2022
Decided On : 13-12-2022
Proprietorship Firm - Tender - Whether the petitioner is entitled to the extra payments made for off-day wages - Held, reference to previous writ petition in communications of WBSEDCL engineers clearly brings out the mala fides behind such refusal - Particularly in communication of WBSEDCL dated, is entirely without context and bearing and can furnish no ground of refusal of payment to petitioner for dues with regard to works already done by petitioner - Petitioner has made out a successful case for release of dues of the petitioner along with interest at rate of ten per cent per annum from the date of Demand Notice dated - W.P.A allowed
JUDGMENT :
Sabyasachi Bhattacharyya, J.
1. The petitioner is a Proprietorship Firm represented by its sole proprietor Arup Kumar Goswami. The said Firm is a contractor under the West Bengal State Electricity Distribution Company Limited (WBSEDCL). On a tender being issued on July 10, 2015 by the WBSEDCL for maintenance of 33KV, 11KV and LV Lines and installations, air-conditioning equipment, recording of various measurement, inter-communication system, operation and maintenance of water-supply system, etc., the petitioner participated in the same and came out the successful bidder.
2. The said job was awarded to the petitioner. The contract stipulated its period to be two years, extendable for a further period of six months by the Ordering Authority with the same terms and conditions.
3. Accordingly, on September 1, 2015, the WBSEDCL issued a Work Order to the petitioner to perform the job.
4. Subsequently, on the instruction of Officials of WBSEDCL, the petitioner continued as per the terms and conditions of the Contract to do the job. The petitioner contends that the WBSEDCL Officials had requested the petitioner in several meetings held between the petitioner’s proprietor and the WBSEDCL, in view of workers’ agitations, that the petitioner disburses the salaries for the off-days as well.
5. However, when the petitioner claimed its dues, the WBSEDCL refused to honour the same, for which the present writ petition has been filed.
6. Learned counsel for the petitioner, by placing reliance on the letter issued by the Chief Engineer and Project Manager, Purulia Pumped Storage Project (PPSP) of the WBSEDCL, submits that the petitioner, by the said communication, was directed to continue the subject-matter works from September 01, 2021 to November 30, 2021 on the existing rates, terms and conditions, without creating any rights or equity in favour of the petitioner and without prejudice to the rights and contentions of the WBSEDCL. The petitioner was also advised to conform to the statutory compliances as well as contractual obligations in this regard.
7. It is required to be noted that since after the expiry of the original period of contract, the petitioner had been continuing to do the work as per the terms and conditions of the contract due to the exigent nature of the job, on the request of the WBSEDCL.
8. It is submitted that on December 24, 2020 a meeting was held between the petitioner-Firm and the PPSP Officials. In the said meeting, the Minutes of which are annexed at page 70 of the writ petition, the issue of workers’ agitation was mentioned and the WBSEDCL Authorities had arranged a meeting with the petitioner-Firm where the said Officials verbally advised the petitioner to pay those allowances which were being given before the order, including off-day duty salary to the workers, and assured that these additional payments would be reimbursed by modification of the order.
9. The committee members present requested the petitioner to continue the work peacefully and wait for the final decision of the WBSEDCL till March 31, 2021. The Officials of the WBSEDCL also assured that the petitioner’s demand for enhancement of rate would be placed before “Higher Authority” and the Agency was advised to submit the break-up of demand justifying the enhancement claimed by him shortly.
10. It is contended by learned counsel that the petitioner had continued to work on the insistence and assurance of the WBSEDCL-Authorities at the same rates, terms and conditions as the original contract, despite the increasing expenses due to rising prices of materials and labour. As such, enhancement in the rates was being requested by the petitioner repeatedly, but the same fell on deaf ears.
11. Ultimately, the petitioner claimed its dues with regard to the off-day duty allowances which were paid in terms of the request of the WBSEDCL Officials.
12. However, the WBSEDCL, after sitting tight over the issue for long, refused to honour their commitment by paying suc
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SupremeToday
Non-compliance with statutory obligations and contractual clauses can justify the termination of a contract.
The petitioner remains eligible for future contracts despite erroneous document submissions, provided compliance with dues and contributions is established.
The judgment establishes the principle that transparency in the selection process, adherence to natural justice, and respect for fundamental rights are essential in contractual engagements with publi....
The court highlighted the importance of the arbitration clause in the contract agreement and the principles laid down by the Supreme Court regarding the maintainability of writ petitions in contractu....
It is settled that interpretation and implementation of clauses in a contract cannot ordinarily be subject-matter of a writ petition.
The significance of admitted liabilities, conflicting stands, and serious disputed questions of fact in contractual matters, and the discretion of the court in exercising jurisdiction.
The extraordinary jurisdiction of this Court can be exercised in view of the admission made by the 3rd respondent regarding payments to be payable to the petitioner.
Writ petitions for recovery of contractual dues are not maintainable when an arbitration clause exists, and claims made after significant delays are barred.
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