IN THE GAUHATI HIGH COURT, (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
MANISH CHOUDHURY, J.
Monowar Hussain, S/o. Bonijuddin - Petitioner
Versus
The Union of India, represented by the Secretary, Ministry of Railways and Ors. - Respondents
Writ Petition (C) No. 5398 Of 2020
Decided On : 07-08-2023
Constitution of India, 1950 - Article 226 - Tender - Contract-Agreement - Liability of an amount - Writ petition seeking a direction to respondent authorities to pay him an amount contending that said amount has remained outstanding towards a contract-work executed by petitioner for respondent – Dispute as to whether those amounts are payable or not and or how much amount is payable are disputed questions of fact in absence of any admission on part of respondent Railway authorities to infer that amounts stand crystallized. Para 13.
Finding of the Court: To refute contention of respondent Railway authorities that petitioner was unable to show any formal instrument in writing whereby any extra works were entrusted to him, petitioner was not brought any cogent materials on record to draw a prima facie inference that such extra works were perhaps entrusted - Thus, it is clear that dispute as to whether those amounts are payable or not and or how much amount is payable are disputed questions of fact in absence of any admission on part of respondent Railway authorities to infer that amounts stand crystallized - Any dispute relating to interpretation, implementation or enforceability of terms and conditions of a contract of nature involved, cannot be agitated in a writ petition - Whether any amount is due to petitioner from respondent Railway authorities under Contract-Agreement or whether Contract-Agreement had been validly terminated by respondent authorities or whether refusal to pay any amount by respondent Railway authorities to petitioner is justified, or not, are not matters which should be agitated in or adjudicated upon in a writ petition - Such matters are for adjudication by a civil court or in arbitration, it provided for in contract.
Result: Writ petition is dismissed.
JUDGMENT :
1. The instant writ petition has been instituted by the petitioner seeking inter alia a direction to the respondent authorities to pay him an amount of Rs. 7,61,858/-contending that the said amount has remained outstanding towards a contract-work executed by the petitioner for the respondent N.F. Railway authorities. According to the petitioner, the amount of Rs. 7,61,858/-consists of two bill amounts amounting to Rs. 3,51,858/- and Rs. 4,10,000/- respectively.
2. The facts which are not in dispute can be stated at first. The respondent N.F. Railway authorities published a Tender Notice vide E-Tender no. RN-ST-10,2017-18 for a contract work :-‘Painting of Signaling and Telecom gears in CGS-RNY-NBQ & AZA-GLPT-MZQ Section of BG-I & BG-II section of RNY Division’ [‘the Contract-Work’, for short]. On such publication, the petitioner took part in the tender process initiated by the said Tender Notice by submitting his tender. After evaluation of the tenders of the participant bidders, the petitioner was issued a Letter of Acceptance [LoA] dated 12.12.2017 as he emerged as the successful bidder, whereby, the petitioner was awarded the Contract-Work at a contract price of Rs. 5,14,210/-inclusive of all taxes and duties and charges as per the terms and conditions mentioned in the tender document. By the LoA, the petitioner was asked to deposit an amount towards security deposit @ 5% of the contract price of Rs. 5,14,210/-with the condition that the security deposit would be returned to the petitioner after completion of the Contract-Work in all respects on being certified by the competent authority. The petitioner as the successful bidder, was also asked to submit Performance Guarantee [PG] amounting to 5% of the contract price. Clause 2 of the LoA mentioned that the Contract-Work should be completed within 90 days from the date of issuance of the LoA. The petitioner was thereby, asked to start the Contract-Work immediately and to complete it within the stipulated period from the date of issuance of the LoA. It was further informed that unless any extension to the date of completion was granted subsequently as per General Conditions of Contract [GCC] and Standard Special Conditions of Contract [SSCC] of the N.F. Railway, 1998 Edition vide Clause no. 17 and if the extension period is granted due to contractor’s delay, Clause no. 17B of GCC would be implemented for deducting the Liquidated Damages [LD]. By issuing the LoA, the petitioner was requested to sign the necessary Contract-Agreement. Upon compliance of the formalities set forth in the LoA by the petitioner, a Contract-Agreement no. ST20170024 was executed between the petitioner and the respondent N.F. Railway authorities on 23.01.2018. As per the Contract-Agreement, the period of completion was 90 days, that is, from 12.12.2017 to 11.03.2018. It was agreed that if the Contractor would duly perform the Contract Work in the manner stated in the Contract-Agreement observing the terms and conditions, the Railway authorities would pay or cause to be paid to the Contractor for the said Contract Work on the final completion thereof the amount due in respect thereof, at the rate specified in the schedule therein.
3. The case projected by the petitioner, in brief, is that he completed the Contract-Work on 08.08.2018. The petitioner has contended that in addition to the Contract-Work, he was required to complete certain extra works on 01.01.2019 in relation to the Contract-Work which was worth Rs. 5,00,000/-. After completion of the Contract-Work, the petitioner submitted a Final Variation Statement with reference to Contract-Agreement no. ST-20170024 dated 23.01.2018 and the same was duly accepted and admitted by the respondent no. 5. It is claimed that in a Forwarding Report dated 09.12.2019, the respondent Railway authorities had admitted liability of an amount of Rs. 3,51,858/-after deduction of GST, cess, etc. in respect of the Contract-Work. The petitioner has contended
It is settled that interpretation and implementation of clauses in a contract cannot ordinarily be subject-matter of a writ petition.
Writ under Article 226 not maintainable for contractual termination disputes involving factual questions when arbitration clause exists, natural justice not violated, and no public law issue raised.
A contractor must fulfill tender conditions to enter into a valid binding contract and cannot claim undue benefit in the absence of a work order or contract agreement.
Contractual agreement - Whether existence of arbitral agreement between parties that High Court of Delhi alone will have jurisdiction to try dispute arising out of contract is enforceable in law - Un....
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