SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2021 Supreme(Gau) 720

IN THE HIGH COURT OF GAUHATI, KOHIMA BENCH
SONGKHUPCHUNG SERTO, S. HUKATO SWU, JJ.
Gayatri Projects Ltd. - Appellant
Versus
National Highways and Infrastructure Development Corporation of India Limited and Ors. - Respondents
W.P. (C) No. 107 of 2021
Decided On : 14-07-2021

Advocates Appeared:
For the Appellant : C.T. Jamir, Sr. Adv.
For the Respondents: Moa Jamir.

Headnote:

Constitution of India, 1950 – Article 226 – Power of High court to issue certain writs – Quashing the termination order – Petition praying for issuance of a writ in the nature of mandamus or any other appropriate writ or order or direction directing respondent No. 1 to go for foreclosure of agreement executed by both petitioner and respondent No. 1 for work, four lanning of existing road from design excluding Bypass, under SARDP-NE through Engineering, Procurement and Construction (EPC contract), for a contract price of NIR 340 crores in terms of O.M., issued by Ministry of Road Transport and Highway dealing with stuck projects and, other consequential reliefs – Held, Fact that this Court has also intervened is also because of importance it holds – But writ petitioner has shown least or scant regard for all these – Contractor taking up a project of such nature and importance is expected to know and respect public interest involved – Profit making motive alone should not supersede same having seen performance of petitioner closely for past two years, that is, since our intervention, Court are not impressed with submission of learned counsel of petitioner that, given chance and time petitioner would be able to complete project – Facts and circumstances narrated herein above bears testimony to this – As such, to allow prayer of petitioner would amount to ignoring realities and public interest which is paramount – Writ petition dismissed.

JUDGMENT :

Songkhupchung Serto, J.

1. This is a petition praying for issuance of a writ in the nature of mandamus or any other appropriate writ or order or direction directing the respondent No. 1 to go for foreclosure of the agreement dated 22.04.2016 executed by both the petitioner and the respondent No. 1 for the work, four lanning of the existing Dimapur-Kohima road from design chainage Km 152.490 to 166.700 (existing Km 156.00 to 172.900) excluding Dimapur-Kohima Bypass, under SARDP-NE through Engineering, Procurement and Construction (EPC contract), for a contract price of NIR 340 crores in terms of the O.M. dated 09.03.2019, issued by the Ministry of Road Transport and Highway dealing with stuck projects and, other consequential reliefs.

2. Heard Mr. C.T. Jamir, learned Sr. counsel, assisted by Mr. Ram Babu and Mr. N. Khat for the petitioner. We have also heard Mr. D.K. Banerjee, learned Sr. counsel appearing for the NHIDCL (respondents No. 1 & 3), assisted by Mr. Moa Jamir and, Mr. Paul, Authority Engineer (respondents No. 10) in person and, Mr. K. Sema, learned Sr. Addl. Advocate General appearing for the State of Nagaland, assisted by Ms. Livika.

3. Mr. C.T. Jamir, learned senior counsel appearing for the writ petitioner submitted that as per paragraph 4 of the OM No. NH-24028/19/2018-H(Pt.), dated 9/3/2019 issued by the Government of India, Ministry of Road Transport and Highways, all projects undertaken or executed by the Ministry and other agencies like NHIDCL through various modes including EPC mode, should be foreclosed if the project is stuck and cannot be completed. Mr. C.T. Jamir referred to paragraph 2(i) of the guiding principle in support of his submission and the same reads as follows:-

    "(i) Stuck Projects awarded under EPC Mode:

The projects awarded under the EPC mode, which qualify as Stuck Projects, recourse may be taken to fore-closure of the EPC Agreement vide a Supplementary Agreement mutually agreed and executed between the Parties. The Authority would pay for executed/completed work in terms of milestone payment criteria set forth in Schedule-H of the Agreement in the manner laid down in the concerned Agreement. As regards the executed work not meeting the aforementioned milestone payment criteria but determined to be usable by the Authority, payment for such work will be made as per the amount assessed by the Authority."

Mr. C.T. Jamir, thereafter, submitted also that in view of the stated principle and as per clause 26.2 of the contract agreement, the parties were under a process to foreclose the agreement. And pursuant thereto, a conciliation meeting was held on 16/2/2012 and in that meeting, the NHIDCL asked the writ petitioner to surrender the work so that unfinished part of the project can be entrusted to another contractor for early completion. Accordingly, a draft for foreclosure was prepared by the respondents and the same was communicated to the writ petitioner through an e-mail, dated 24/2/2021. And on received of the same, the writ petitioner suggested some changes through an e-mail, dated 24/2/2021. The changes suggested were however, rejected by the respondents and instead, the writ petitioner was directed to complete the project by 31/5/2021. But, in another meeting held on 5/3/2021 between the employer and the contractor, an understanding was reached whereby, the writ petitioner agreed to surrender the project and the respondent was willing to take over the same. However, certain changes were made in the draft of foreclosure agreement by the respondent and, while the matter was pending at that stage, the respondent issued the notice dated 9/4/2021 for termination of the contract agreement. Thereafter, without considering petitioner's reply given through a letter dated 19/4/2021 the respondents, vide letter 1/6/2021 informed the petitioner that the contract agreement has been terminated forthwith in accordance with clause 23.1.2 of the contract agreement. This order of termination of the c

      Click Here to Read the rest of this document
      1
      2
      3
      4
      5
      6
      7
      8
      9
      10
      11
      SupremeToday Portrait Ad
      supreme today icon
      logo-black

      An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

      Please visit our Training & Support
      Center or Contact Us for assistance

      qr

      Scan Me!

      India’s Legal research and Law Firm App, Download now!

      For Daily Legal Updates, Join us on :

      whatsapp-icon Back to top