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2025 Supreme(Gau) 1680

IN THE HIGH COURT OF GAUHATI, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
Yarenjungla Longkumer, J.
Sh. P.C Vanlalawmpuia, S/o Late Biakliana – Petitioner
Versus
The State of Mizoram and ors. – Respondents
WP(C)/143 of 2024
Decided On : 02-09-2025

Advocates Appeared:
For the Petitioner: Mr C Lalramzauva Sr. Adv.
For the Respondent: Addl. AG/GA

In contractual disputes involving fact complexities and excess payments, writ courts are generally not competent to adjudicate, favoring civil suit or arbitration for resolution.

Headnote:(A) Constitution of India - Article 226 - Writ petition for direction to close contracts and release pending amounts - If a contractor dies and the nominee is unwilling to continue, contracts shall be closed without damages as per clause 55.2 of the Standard Bidding Document - Petitioner claimed amounts not fully paid, alleging arbitrary action by State - Responses indicated disputed excess payments and non-closure of contracts - Court found jurisdiction limited to public law matters and dismissed the petition. (Paras 2, 3, 4, 16, 30)

(B) Disputed Questions of Fact - Writ Court generally refrains from adjudicating on matters of fact particularly in contractual obligations, suggesting the appropriate forum for such disputes is civil court or arbitration. (Paras 27, 30)

(C) Claim - No admission of liability by the State; complexities of fact required evidence not suitable for writ jurisdiction. (Paras 28, 31)

Facts of the case:
The petitioner, son of a deceased contractor, sought closure of contracts and release of pending payments, emphasizing failure of State to act following the contractor's death.

Findings of Court:
Disputed claims and complexities in verifying amounts indicated the inappropriate nature of writ jurisdiction; hence, petition dismissed.

Issues: The primary issue concerned the appropriate channel for resolving contractual disputes following a contractor's demise where claims and payments were contested.

Ratio Decidendi: The court underscored the principle that disputes involving complex factual determinations should reside outside writ jurisdiction, favoring civil litigation or arbitration as the remedy.

Result: Petition dismissed.

Table of Content
1. petitioner's request for contract closure. (Para 2 , 3 , 4 , 5 , 6 , 7)
2. discrepancy in payment amounts claimed. (Para 9 , 10 , 11 , 12)
3. contestation of payments and contract fulfillment. (Para 13 , 14 , 15 , 18 , 20)
4. court's limitation on writ jurisdiction for factual disputes. (Para 21 , 22 , 24 , 26 , 27)
5. dismissal of petition with options for further action. (Para 30 , 31)

JUDGMENT :

YARENJUNGLA LONGKUMER, J.

Heard Mr. C. Lalramzauva, learned senior counsel assisted by Mr. Lalbuatsaiha, learned counsel for the petitioner and Ms. Mary L Khiangte, learned Government Advocate for the State respondents.

2. By filing this writ petition under Article 226 of the Constitution of India, the petitioner prays for a direction to the respondents to take immediate action as contemplated under clause 55.2 of the Standard Bidding Documents/GCC by closing all the 11 contract works awarded to the petitioner’s late father and to release all the amounts pending in connection with all the contract works mentioned in paragraph 4 of the writ petition with interest at the rate of 12.5 % per annum after adjusting the amount already released to the petitioner on 02.12.2024 as stated in paragraph 6 of the petition.

3. It is contended by the petitioner that he is the son of Lt. Biakliama who was the Contractor and was awarded as many as 11 contract works for construction of roads under PMGSY. However, before he could complete the contract works he passed away on 03.07.2022.

4. The petitioner being the son and nominee of the late Contractor expressed his unwillingness to continue with the remaining balance work by submitting representation to the respondents except for the work in respect of ‘construction of Phura to Vahai road’ (0.00-17.0 Kmp) package No.MZ07 912 group No.133. For this work, the petitioner was not a nominee but one Shri Malsawmtluanga was the nominee.

5. It is the case of the petitioner that as per clause 55.2 of the GCC, which formed part of the contract agreement between the employer and the Contractor, if the Contractor dies during the pendency of the contract or became permanently incapacitated, and his/her nominee are not willing to complete the contract, the contract shall be closed without levying any damages/compensation as provided for in clause 44 and 53 of the GCC. It is also provided in clause 55.2 that if the nominee expresses his/her intention to complete the balance work and the competent authority is satisfied about the competence of the nominee, then the competent authority shall enter into a fresh agreement for the remaining work strictly on the same terms and conditions under which the contract was initially awarded.

6. The petitioner in his writ petition has provided details of the 11 contract works which were allotted to his late father which is listed herein below:-

Sl.N oName of the workAgreement NoAgreement Amount(In Rs.)Remarks
1.Construction of Jognasuri to Karlui Road57/MIRR DA/2018 -19888.95 LakhsCompleted
2.Construction of Sabualtlang to Hmawngbuchhuah Road().00- 1.76Kmp) Package56/MIRR DA/2018 -19244.22 lakhscompleted
3.Construction of Nghalimlui to Balisora Road (3.00-5.00 Kmp) Package No.MZ04 91B104/MIR RDA/201 7-182,49,17,142.63Completed
4.Construction of Chhuarlung to Ainak Road (0.00-10.90 Kmp) Package No.MZ07 911142/MIR RDA/201 7-188,35,87,397.45Completed
5.Construction of Bunghmun to W Mualthuam Road (0.00- 13.50 Kmp) Package No.MZ06912141/MiR RDA/201 7-188,64,81,131.30Completed
6.Construction of Phura to Vahai Road(0.00-17.0 Kmp) Package No.MZ07 912 Group No.133)95/MiRR DA/2017 -1814,68,31,459.0 5Incomplete (Request to terminate current contract submitted on 6/1/2023
7.Construction of Vasietlang to Maniababsora Road(00.00- 13.50 Kmp) Package No.MZ079123/MirrDA /2019- 202023,16,96447.7 9Completed
8.Construction of Niawhtlang to Chakang Road(0.00-44.05 Kmp) Package No.MZ07 712/MIRR DA/2020 -2116,15,33,485. 95Incomplete (Unwillingnes s to continue execution submitted on 6/1/2023) RA- Bill-I

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