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MICHAEL ZOTHANKHUMA
Rana Construction and Engineers Pvt. Ltd. – Appellant
Versus
State of Assam, Represented by the Commissioner and Secretary to the Government of Assam, Public Works Roads Department – Respondent
JUDGMENT :
1. Heard the petitioner-in-person in WP(C) No.4982/2023, who is the Director of the petitioner company. Also heard Mr. S. Hoque, learned counsel for the petitioner in WP(C) No.2146/2023. Mr. B. Gogoi, learned Standing Counsel appears for the PWD and Mrs. R. Devi, learned CGC appears for the respondent nos.4 & 5.
2. As the subject matter in both the cases relate to the same contract work in question and the petitioner being the same in both the cases, the cases are being decided by this common judgment and order.
3. In WP(C) No.2146/2023, the petitioner has put to challenge the Speaking Order dated 10.04.2023 issued by the Chief Engineer, PWD (Border Roads) and made a prayer to allow him to deposit Performance Security and additional Performance Security in respect of Package No. AS-17-260, PMGSY-III, Batch No.1, 2022-23 for execution of the work constructing road length of 22.65 kms. in Morigaon District. The road name being T05Dimaruguri Kamarpur Road. The contract work includes cross-drainage works and routine maintenance works for 5 years. He has also prayed for setting aside the fresh NIT dated 28.02.2023 issued in respect of the same Package No. AS-17-260, PMGSY-III, B
It is settled that interpretation and implementation of clauses in a contract cannot ordinarily be subject-matter of a writ petition.
Court upheld the demand for additional performance security per contractual terms to prevent front loading, emphasizing the need for safeguarding project completion.
The court emphasized the importance of strict compliance with tender conditions and the exercise of judicial review in contractual matters, particularly when public interest is involved.
The court upheld the validity of contract termination due to non-completion of work, affirming that claims for liquidated damages should be pursued in civil court.
The Court determined that contractual disputes involving factual questions requiring evidence must be resolved outside the writ jurisdiction under Article 226 of the Constitution.
Writ petitions are maintainable for contractual claims against state entities, and withholding payments due to contractors on arbitrary grounds violates constitutional obligations to act fairly.
(1) Constitutional courts must defer appreciation of tender documents by employer unless there is mala fide or perversity in understanding or appreciation.(2) Tendering authority cannot be expected t....
A party failing to comply with contractual terms may be subject to termination even if claiming force majeure circumstances.
Compliance with work order conditions and directions is essential for upholding a procurement process. Failure to adhere to the conditions may lead to the forfeiture of earnest money and cancellation....
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