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2025 Supreme(Gau) 817

THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) 
SANJAY KUMAR MEDHI, J.
Anup Trade And Transport (P) Ltd. - Appellant 
Vs.
Union Of India And Ors. - Respondent 
WP(C) No. 2002 Of 2023
Decided On : 24-06-2025



Advocates:
Advocate Appeared:
For the Appellant :Shri G. N. Sahewalla, Sr. Advocate. Ms. S. Todi, Advocate.
For the Respondent: Shri B. K. Singh, SC, FCI.

Contracts must be honored based on verified terms and conditions; discrepancies in distances stated versus actual must be rectified to uphold contractual integrity.

Headnote:(A) Legal principles governing contract execution and tender evaluation. The dispute pertains to the distance of transportation stated in the Notice Inviting Tender (NIT), leading to a claim for differential payment due to an inaccurately stated distance. The court held that contracts should be honored as per the agreed terms relating to distances and rates. (Paras 1, 17, 28)

Facts of the case:
The petitioner, a contractor awarded a transportation contract based on a quoted distance of 292 KM, challenged a rejection of claims for excess distance covered, revealing an actual distance of 343.2 KM. Initial findings from two separate Committees indicated discrepancies in distances upon physical verification. (Paras 3, 4, 25)

Findings of Court:
The current committee's method of distance assessment based on maps rather than physical verification leads to the claim being deemed unsustainable. Actual transportation distance, per earlier committee findings, was confirmed to be 343.2 KM and rights for payment of the said distance upheld. (Paras 26, 28)

Issues: The primary issues included the accuracy of evaluated transportation distances and the validity of committee reports determining excess charges during the contract period. (Paras 17, 18)

Ratio Decidendi: The court asserted that fair and just evaluation based on verified distances prevails over map-based computations, especially in contractual agreements. Existing conditions at the time of contract are crucial for determining appropriate payment. (Paras 24, 26)

Result: The writ petition was allowed; the respondent ordered to recalculate payments based on the verified distance of 343.2 KM within 45 days. (Paras 28, 29)

Table of Content
1. petition challenges fci's rejection of claim. (Para 1 , 2 , 3 , 4)
2. parties argue over distance and contract terms. (Para 5 , 6 , 8 , 9 , 10 , 11)
3. court examines procedural adherence in claims. (Para 12 , 14 , 15 , 16 , 17 , 18)
4. court finds discrepancies in distance assessments. (Para 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26)
5. court orders recalculation of compensatory payment. (Para 27 , 28)
6. writ petition allowed with no costs ordered. (Para 30)

JUDGMENT :

SANJAY KUMAR MEDHI, J.

The instant writ petition has been filed assailing an order dated 26.02.2023, passed by the Disputes/Grievance Redressal Committee of the Food Corporation of India (FCI), whereby the claim of the petitioner has been rejected.

2. There is a chequered history involved in this litigation.

3. The Respondent No. 2 had issued a Notice Inviting Tender (NIT) dated 30.03.2015, for appointment of regular contractors for transportation of food grains. The Petitioner had submitted its tender for the route against Sl. No. 5, i.e, ex-Railway Siding Salchapra to FCI, FCD, Chandrapur (Tripura), via weighbridge whereby the distance was notified to be 292 KM. The petitioner had submitted its bid @ Rs.2759/- per MT which was the L1 rate and accordingly the petitioner was awarded the work. It is the case of the petitioner that as per the procedure, for finding the lowest rate, the quoted rate is converted to per kilometre. The formal work order was issued on 02.06.2015. However, on execution of the work, the petitioner found that the distance was more than 292 KM, and, therefore had made numerous representations to the FCI authorities which ultimately led to the FCI to form a Committee by an order dated 19.08.2016, to find out the actual distance. The Committee had accordingly, made a physical verification and submitted a report as per which, the distance was found to be 343.2 KM. It is contended that in the said report, it was mentioned that there were three ways leading to the main road National Highway via Kalain. However, lorries/trucks could ply through only one road and the other two roads pass through populated villages and private tea estate and hence it would not have been possible for lorries/trucks to ply through those two roads.

4. The petitioner had accordingly claimed the differential amount which was, however, rejected vide an order dated 20.01.2017. The said rejection order was the subject matter of challenge in WP(C)/ 3138/2018. Based on an earlier order passed in another writ proceeding, the writ petition filed by the petitioner was allowed on 22.05.2019 against which the Corporation had preferred WA/36/2020 in which the Hon’ble Division Bench interfered with the judgment and directing the petitioner to approach the Disputes Redressal Committee. However, on such approach the Committee had rejected the claim vide order dated 17.08.2022 which was challenged by the petitioner in WP(C)/ 6618/2022. The matter was remanded back for a fresh consideration. The Committee however passed another order dated 26.02.2023 of rejection and accordingly the present writ petition has been instituted.

5. Heard Shri G. N. Sahewalla, learned Senior Counsel assisted by Ms. S. Todi, learned counsel for the petitioner. Also heard Shri B. K. Singh, learned Standing Counsel, FCI.

6. The learned Senior Counsel for the petitioner has contended that in a similar circumstance, a party had earlier approached this Court by filing writ petition i.e. WP(C)/4117/2017, which was allowed vide judgment dated 03.04.2018. In terms of the said judgment, the writ petition filed by the petitioner was also allowed vide judgment dated 22.05.2019, whereby the respondents were directed to make the payment of the entire distance of 343.2 KM. The learned Senior Counsel for the petitioner has submitted that against the aforesaid judgment, the respondent FCI had preferred Writ Appeal i.e. WA/36/2020, which was however allowed vide judgment dated 24.02.2020.

7. The grounds on which the appe

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