IN THE HIGH COURT OF GAUHATI, (Assam, Nagaland, Mizoram And Arunachal Pradesh)
Suman Shyam, J.
M/s. G.B. Chowdhury Holdings Pvt. Ltd. Rep. By Its Director. – Petitioner
Versus
Food Corporation Of India And 2 Ors. – Respondents
W.P.(C.) No. 214 Of 2019
Decided On : 13-09-2022
Constitution Of India, 1950 – Article 226 - Companies Act, 1956 – Power Of High Court to issue Certain Writs - Seeking a Writ of Mandamus - Whether petitioner would be entitled to payment in respect of the actual distance determined by authorities as per its quoted rate or stand of the respondents in denying payment to petitioner as regards additional amount and consequent non-release of security deposit, was valid in eye of law - Hon’ble Division Bench was of view that claim of contractor would require reassessment of the rates and in the peculiar facts and circumstances of the case, which could not be permissible in exercise of writ jurisdiction. (Para 20).
Findings of the Court: Hon’ble Division Bench was of the view that claim of the contractor would require reassessment of the rates and in peculiar facts and circumstances of case, which could not be permissible in exercise of writ jurisdiction. However, respondents (FCI) have already rejected the claim of the writ petitioner. As such, judgement passed in WA, in considered opinion of this Court, was rendered in the facts and circumstances of that case. This Court is of opinion that dispute involved in this writ petition is squarely covered by the judgement and order which was upheld by Division Bench of this Court by order. As such, adopting a different view in matter in facts and circumstances of the case would not be permissible in eye of law.
Result: Petition disposed of
JUDGMENT :
1. Heard Mr. N. Deka, learned counsel appearing for the writ petitioner. I have also heard Mr. B.K. Singh, learned Standing Counsel, FCI, appearing on behalf of the all the respondents.
2. This writ petitioner herein, is a company registered under the Companies Act, 1956, having its registered office at Chowdhury Tilla, Sarumotoria, Dispur, Guwahati, in the district of Kamrup (M). Aggrieved by rejection of its prayer for release of additional amount for the actual distance covered under the contract agreement, the instant writ petition has been filed seeking a Writ of Mandamus from this Court.
3. The facts and circumstances of the case giving rise to the filing of the writ petition are stated hereunder.
4. The respondent no. 3 had issued a “Notice Inviting e-Tender” (NIeT) dated 30/03/2015 inviting bids from interested contractors for execution of transportation contract under the Food Corporation of India (FCI) in respect of as many as 13 different routes. It was a 2(two) bid system wherein, the contractors were required to submit their technical bid as well as the price bid. The tender document itself had provided that the rate quoted should be per MT per KM as per MTF. If the rate is quoted otherwise, it shall be converted into per MT per KM taking the distance as mentioned in the NIeT.
5. In response to the NIeT dated 30/03/2015, the writ petitioner herein had submitted its bid in respect of the work at Sl. No. 5 of the NIeT pertaining to “Ex-Railway Siding, Salchapra to FCI, FSD, Nandannagar (Tripura) via Weigh Bridge” having distance 232 KMs. Since we are concerned in this case only with the work at Sl. No. 5 of the NIeT, the particulars of other works included in the NIeT, are not relevant and therefore, are not referred to in this judgement.
6. As per the projection made in the NIeT, the total distance to be covered in the route for which the writ petitioner had submitted its bid was 232 KMs. As such, the petitioner had quoted an amount of Rs. 2549/-per MT taking the distance to be 232 KMs. Since the quote of the petitioner was per MT, hence, in accordance with the tender condition noted above, the rate quoted by the petitioner was converted into per MT per KM taking the distance as mentioned in the NIeT, which worked out to Rs. 10.98 per MT per KM. Accordingly, the petitioner became the L-1 bidder and the work was awarded to it. On completion of the work, payment was also made to the petitioner for a distance of 232 KMs @ Rs. 10.98 per MT per KM.
7. It transpires from the materials available on record that during execution of the contract, the authorities had noticed certain discrepancies with regard to the distance originally projected in the NIeT dated 30/03/2015 in respect of as many as four different routes. As such, a 4 (four) member Review Committee was constituted by the FCI to verify the actual distance and prepare a report as regards the road distance pertaining to Ex-Railway Siding, Salchapra to FCI, FSD, Arundhuti Nagar, Nandan Nagar and Chandrapur as well as Ex-Railway Siding, Bihara to FSD, Chandrapur and Nandan Nagar.
8. Upon making the physical verification of the distance, the Review Committee had submitted its report dated 12/09/2016 under the signature of four responsible officials of the FCI. As per the projection made in the report dated 12/09/2016 pertaining to the work executed by the petitioner i.e. in the route “Salchapra to FCI FSD, Nandan Nagar (Tripura) via Weigh Bridge”, the actual distance was found to be 284.8 KMs. In other words, the original distance of 232 KMs projected in the NIeT dated 30/03/2015 was found to be incorrect as the actual distance in the said route was found to be 284.8 KMs. The FCI authorities have also accepted the findings of the Review Committee to be correct.
9. After the report of the Committee dated 12/09/2016 became available, the writ petitioner had approached the respondents seeking payment for the additional distance of 52 KMs i.e. the distance ove
Adopting a different view in matter in facts and circumstances of case would not be permissible in eye of law.
Contractor had not approached Grievance Redressal Committee and hence, Court, relegated contractor to invoke jurisdiction of Grievance Redressal Committee for ventilating its grievances.
Contracts must be honored based on verified terms and conditions; discrepancies in distances stated versus actual must be rectified to uphold contractual integrity.
The main legal point established in the judgment is that the interpretation and implementation of a clause in a contract should be adjudicated by a civil court or arbitration, if provided under the c....
‘Damage’ means money claimed or ordered to be paid to a person as a compensation for loss or injury that may be caused by other party.
The court emphasized that bureaucratic processes justify leniency in condoning delays in filing appeals, recognizing that good cause is a lesser standard than sufficient cause.
Writ jurisdiction cannot be invoked to resolve contractual disputes involving contested facts or claims for additional compensation where the contract expressly provides against such escalation; such....
Retrospective recovery of amounts under an executive order is impermissible without following due process and the principles of natural justice.
Retrospective recovery of amounts by public authorities must adhere to established tender conditions and principles of natural justice.
The court ruled that bids below the justified rate are non-responsive, emphasizing judicial respect for expert evaluations in tendering processes.
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