The court affirmed contractors' rights to price escalation due to delays in site handover by the Municipal Corporation, emphasizing non-compliance with contract terms and fair hearing principles in administrative decisions.

ORDER :

1. Since the issue raised in the above captioned Writ Petitions filed by the petitioner bearing W.P.(C) No. 3339/2023; W.P.(C) No. 3807 of 2023 and W.P.(C) No. 5057 of 2023 are common, they are being disposed of by this Common Order.

2. The relief(s) sought in the above-stated petitions are stated herein below:-

W.P.(C) No. 3339 of 2023:-

“10.1 That, the Hon’ble Court may kindly be pleased to call for the entire records in respect of the grievance of the Petitioner kept in the possession of the Respondents, for its kind perusal;

10.2 That, this Hon’ble Court may kindly be pleased to adjudicate and declare that in the facts and circumstances of the case the petitioner is entitled to price escalation from the respondents;

10.3 That, this Hon’ble Court may kindly be pleased to direct the respondents to immediately make payment of the price escalation to the petitioner for the work executed beyond the original contract period of 36 months along with its respective Running Account Bills;

10.4 That, the Hon’ble Court may kindly be pleased to grant any other relief which the Hon’ble Court deems fit and proper in the facts and circumstances of the present case;

10.5 That, the Hon’ble Court may kindly be pleased to grant cost of the petition to the Petitioner.”

W.P.(C) No. 3807 of 2023:-

“10.1 That, the Hon’ble Court may kindly be pleased to call for the entire records in respect of the grievance of the Petitioner kept in the possession of the Respondents, for its kind perusal;

10.2 That, this Hon’ble Court may kindly be pleased to quash and set aside the impugned letters dated 26.07.2023 (ANNEXURE – P/8) 27.07.2023 (ANNEXURE – P/10) and 03.08.2023 (ANNEXURE P-12), invoking the Advance Bank Guarantee No. 0853619BG0000058, 0853619BG0000041 and declare the same to be illegal;

10.3 That, this Hon’ble Court may kindly be pleased to direct the Respondents to recover Mobilization Advance from the Petitioner on pro-rata basis from the Running Account Bills of the Petitioner till the 100% value of work so that it stands fully recovered on completion of work;

10.4 That, the Hon’ble Court may kindly be pleased to grant any other relief which the Hon’ble Court deems fit and proper in the facts and circumstances of the present case;

10.5 That, the Hon’ble Court may kindly be pleased to grant cost of the petition to the Petitioner.”

W.P.(C) No. 5057 of 2023:-

“10.1 Call for the entire records in the possession of the Respondents in respect of the grievances of the Petitioner, for its kind perusal;

10.2 Quash and set aside the impugned order dated 08.09.2023 (ANNEXURE – P/40) passed by the State Government;

10.3 Adjudicate and declare that in the facts and circumstances of the case, the Petitioner is entitled to price escalation from the Respondents for all works executed beyond the original contractual period of 36 months, in line with proposals submitted in the joint representations dated 24.01.2023, 22.02.2023 and 16.03.2023 addressed by the PMAY-HFA contractors (including the Petitioner) to the State Government;

10.4 Adjudicate and declare that in the facts and circumstances of the case, the Petitioner is entitled to payment of GST at enhanced rate of 18% with effect from 18.07.2022, as prescribed vide Notification No. 3/22 dated 13.07.2022;

10.5 Grant costs of the Petition in favour of the Petitioner and against the Respondents; &

10.6 Pass such other and further orders as this Hon'ble Court may consider necessary in the facts and circumstances of the present case.”

3. The facts in a nutshell are that the Municipal Corporation, Bilaspur invited bids on 24.12.2018 for the construction o