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2025 Supreme(Chh) 247

HIGH COURT OF CHHATTISGARH AT BILASPUR
Amitendra Kishore Prasad, J.
Maa Bhagwati Construction - Applicant
Versus
State Of Chhattisgarh Through - Principal Secretary, Public Works Department - Respondent
CR No. 165 of 2025
Decided On : 19-12-2025

Advocates Appeared:
For the Applicant :Mr. Anand Dadariya Advocate
For the Respondent:Mr. Rahul Tamaskar, Government Advocate

Parties must exhaust contractual dispute resolution mechanisms, but such compliance cannot obstruct access to justice, especially when limitation periods are extended due to exceptional circumstances.

Headnote:(A) Chhattisgarh Madhyastham Adhikaran Adhiniyam, 1983 - Section 19 and Section 7-B(1) - Reference petition dismissed for maintainability due to alleged non-compliance with contractual dispute resolution mechanism. Court held that due to the pandemic, limitation was extended, allowing the reference, established legal entitlement to incentive bonus under Clause 5.3 of the agreement. (Paras 2, 4, 15, 16)

(B) Contract Law - Compliance with procedural requirements - The requirement to exhaust administrative remedies prior to approaching judicial forums must be interpreted in light of contractual rights and fairness. No arbitrary restrictions may bar access to justice. (Paras 5, 15, 16)

Facts of the case:
The petitioner, an A-Class contractor, completed a public works contract ahead of schedule and sought an incentive bonus which was arbitrarily withheld by the respondent department, leading to dismissal of the reference petition by the tribunal.

Findings of Court:
The dismissal was improper due to a failure to consider the impact of the Covid-19 pandemic on the limitation period. The petition was filed within the extended timeline.

Issues: The main issues were whether the reference petition was maintainable considering limitations and compliance with Clause 28 of the agreement regarding dispute resolution.

Ratio Decidendi: The court emphasized that procedural requirements should not bar legitimate claims and noted that the reference was timely given the exclusion of the Covid-19 period, overriding the tribunal's decision.

Result: The impugned award dated 14.02.2025 is set aside, and the matter is remitted for fresh consideration.

Table of Content
1. factual background of the case. (Para 1 , 2)
2. arguments regarding the rejection of the claim. (Para 3 , 4 , 5 , 6)
3. court's examination of the tribunal's jurisdiction and limitation. (Para 7 , 8 , 10 , 13 , 14)
4. legal interpretation of clause 28 and limitation periods. (Para 9 , 11 , 12 , 15 , 16)
5. the decision to set aside the tribunal's award. (Para 17)

JUDGMENT :

Amitendra Kishore Prasad, J.

1. Being aggrieved by the award/order dated 14.02.2025 (Annexure P/1) passed by the Division Bench of the Chhattisgarh Madhyastham Adhikaran, Raipur (hereinafter referred to as “the Learned Tribunal” for the sake of brevity) in Reference Case No. 02/2023, titled Maa Bhagwati Construction v. State of Chhattisgarh & Others, whereby the Reference Petition filed by the petitioner has been dismissed as not maintainable, the petitioner is constrained to prefer the present Civil Revision Petition under Section 19 of the Chhattisgarh Madhyastham Adhikaran Adhiniyam, 1983.

2. Facts of the case, as projected by the applicant, in a nutshell, are that the applicant is an A-Class Contractor and is duly eligible to participate in various tenders issued by the Public Works Department of the State of Chhattisgarh. The applicant filed a Reference Case before the Learned Tribunal seeking an award allowing its claims to the tune of Rs. 40,27,584/- (Rupees Forty Lakhs Twenty-Seven Thousand Five Hundred and Eighty-Four Only) along with ante-lite, pendente-lite and post-lite interest, costs of arbitration and other appropriate reliefs. However, without adjudicating the claims on merits, the Learned Tribunal erroneously dismissed the reference petition solely on the ground of maintainability. The respondent department issued a Notice Inviting Tender dated 01.05.2017 for execution of certain construction work. The applicant, being an eligible bidder, participated in the tender process and its bid was accepted vide letter dated 05.07.2017. Pursuant thereto, an agreement bearing No. 64/D.L./2017-18 was executed for the work titled “Construction of 50-50 Capacity Prisoners Barracks (G+1) (12 Units) at Central Jail, Raipur with Electrification Work” (hereinafter referred to as the subject work). A work order was thereafter issued on 18.09.2017, and the applicant commenced execution of the subject work accordingly. The total contract value of the subject work was Rs. 11,12,33,000/-. The time allowed for completion of the work was 18 months, including the rainy season, with the stipulated date of completion being 17.03.2019. Immediately after issuance of the work order, the applicant submitted a detailed work programme dated 20.09.2017, clearly demonstrating its intention to complete the work well before the due date. The applicant successfully executed and completed the entire work on 12.11.2018, i.e., much prior to the stipulated date of completion, and a completion certificate to that effect was issued by the competent authority. During execution of the work, payments were made by the respondent department in accordance with the contractual terms at various stages. The final agreement bill, except for the incentive bonus, was released on 19.12.2019, which was acknowledged by the applicant under protest. As required under Clause 5 of the agreement, the petitioner submitted a written undertaking dated 05.11.2018, expressly waiving its right to seek any extension of time, thereby fulfilling all conditions necessary for entitlement to Incentive Bonus under Clause 5.3 of the agreement. Clause 5.3 of the agreement specifically provides that where the contractor completes the work before the original stipulated time and waives the right to claim extension of time, the contractor shall be entitled to payment of incentive bonus at the prescribed rates. Since the applicant fulfilled all the conditions under the said clause, it became legally entitled to the incentive bonus. The undertaking dated 05.11.2018 was duly served upon the respondent authorities

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