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THE HIGH COURT OF GAUHATI (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
ROBIN PHUKAN
Sahabuddin Siddique – Appellant
Versus
Union Of India – Respondent
JUDGMENT :
ROBIN PHUKAN, J.
Heard Mr. P.J. Saikia, learned Senior Counsel, assisted by Ms. M. Nirola, learned counsel for the petitioners. Also heard Mr. M. Kato, learned Dy.S.G.I. for the respondent Nos. 1, 2, 3 and 4 and heard Ms. S. Basar, learned Government Advocate, for the respondent No. 5.
2. In this petition, the petitioners M/s Sahabuddin Siddique and Sri Sahabuddin Siddique, have prayed for following reliefs:
(i) To direct the respondent authorities to release all the pending bills for the works executed by the petitioners, after carrying out a joint verification by the BRO authority and the petitioners, and pay the bill amount directly to the bank account of the petitioners, without imposing any liquidated damages, compensation etc.
(ii) To direct the respondent authorities to refund/releasethe withheld amount of Rs. 4,47,32,154/-, being deducted for liquidated damages including other deductions.
(iii) To direct the respondent No. 3 to refund the amount of Rs. 2,41,65,000/- covered by the Bank Guarantee No. 6343NDDG00019222 and Bank Guarantee No. 6343NDDG00007722, in connection with the aforementioned project.
(iv) To direct the respondent No. 3 to issue work completion ce
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 established that claims for payment under a subcontract must be pursued through appropriate civil channels, particularly when they involve disputed facts and contractual obligations.
Arbitral awards are not subject to interference unless they exhibit patent illegality; the interpretation of contractual obligations falls within the jurisdiction of the Arbitral Tribunal.
Point of Law : Arbitral Tribunal had erred in concluding that the petitioner had abandoned the works, is also unpersuasive. The finding that the petitioner had abandoned the works is a finding of fac....
A party failing to comply with contractual terms may be subject to termination even if claiming force majeure circumstances.
Bank guarantees can be invoked only if the invocation itself is legal, and the party seeking injunction must show that allowing encashment would result in irretrievable harm or injustice.
The significance of admitted liabilities, conflicting stands, and serious disputed questions of fact in contractual matters, and the discretion of the court in exercising jurisdiction.
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.
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