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2026 Supreme(Gau) 941

THE GAUHATI HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
DEVASHIS BARUAH, J.
Surajit Deka S/O Praneswar Deka - Appellant
Versus
Union Of India And Ors. - Respondent
WP(C) No. 2945 of 2021
Decided On : 24-04-2026

Advocates:
Advocate Appeared:
For the Appellant :Mr. R. Hussain, Advocate Mr. A. A. Ahmed, Advocate
For the Respondent:Ms. S. Baruah, CGC, Mr. S. R. Baruah, Government Advocate, Mr. R. R. Gogoi, Standing Counsel

The court will decline to exercise writ jurisdiction in contractual disputes involving complex factual issues susceptible to evidence, preferring to relegate parties to the contractually agreed-upon dispute resolution mechanism while excluding the pendency period of the writ petition from the limitation computation.

Headnote:(A) Constitution of India - Article 226 - Writ jurisdiction - Disputed questions of fact - The court should not exercise writ jurisdiction when a dispute requires detailed factual examination based on evidence, particularly when the contract in question establishes a specific dispute resolution mechanism - It is not the practice of courts to determine issues concerning breach of contract or performance restrictions in summary proceedings. (Paras 4, 7)

(B) Limitation Act, 1963 - Section 14 - Exclusion of time - Where a writ petition is dismissed on the ground of alternative remedy, the duration during which the proceeding remained pending before the court is to be excluded while computing the limitation period for pursuing the appropriate remedy under the contract. (Para 8)

Facts of the case:
The petitioner challenged the termination of a work order and the invocation of a performance bank guarantee. The petitioner contended that non-performance of the work resulted from external restrictions imposed by local authorities and environmental bodies, whereas the respondent initiated the termination due to the petitioner's failure to complete the work as per the agreement.

Findings of Court:
The court observed that the core of the dispute involves determining whether the petitioner breached the contract or was prevented by unavoidable conditions beyond their control. Such determinations require the leading of evidence and factual analysis, which is unsuitable for summary writ proceedings. Furthermore, the court noted that the agreement contains a specific clause for dispute resolution that defines the designated forum for such legal adjudication.

Issues: The primary issue was whether the court should exercise its extraordinary writ jurisdiction to resolve a dispute involving contractual obligations, termination, and bank guarantee invocation when an alternative dispute resolution mechanism is expressly provided in the contract.

Ratio Decidendi: Writ jurisdiction is not the appropriate avenue for resolving disputed questions of fact arising from contractual breaches. When parties have agreed to a specialized dispute resolution forum within their contract, the court should relegate them to that forum to ensure that evidence can be properly assessed and the factual disputes resolved, while protecting the parties' right to pursue their claims by excluding the period spent in the writ proceedings from the limitation period.

Result: Writ petition dismissed; leave granted to invoke the contractually mandated dispute resolution procedure.

Table of Content
1. nature of contractual dispute and prayers for relief. (Para 1 , 2 , 3)
2. writ courts decline intervention in matters requiring evidence and subject to arbitration clauses. (Para 4 , 5 , 6 , 7)
3. limitation period exclusion and liberty to pursue alternative contractual remedies. (Para 8 , 9)

JUDGMENT AND ORDER :

DEVASHIS BARUAH, J.

Heard Mr. R. Hussain, the learned counsel appearing on behalf of the Petitioner and Ms. S. Baruah, the learned CGC appearing on behalf of the Respondent Nos. 1, 2, 3 and 4. I have also heard Mr. S. R. Baruah, the learned Government Advocate appearing on behalf of the Respondent Nos. 5 and 6 and Mr. R. R. Gogoi, the learned Standing counsel appearing on behalf of the Respondent No.7.

2. The present writ petition has been filed by the Petitioner seeking the following reliefs which are reproduced herein under:

“(i) To set aside and quash the show cause notice no. 23(106)/EE/PD/2020/329 dated 12.05.2020.

(ii) To set aside and quash the order of termination of work order vide No. 23(106)/EE/PD/2020/713 dated 28.08.2020 issued by the Respondent No.3 and upon cause or causes being shown and after hearing both the parties be pleased to make the Rule absolute.

(iii) To direct the Respondents to refund the amount of performance guarantee which was furnished to them in the form of BG Bond No.3213ILG001618 dated 17.05.2018 for Rs.22,93,058.00 issued by Punjab National Bank, Mahabir Market Branch, S.R.C.B. road, Guwahati-781001.

(iv) To direct the Respondents to pay the Bank charges for extra 16 months paid by the petitioners to his Banker for keeping the BG Bond No. 3213ILG001618 dated 17.05.2018 for Rs.22,93,058.00 alive till the determination of the contract.”

3. It is the case of the Petitioner that the Petitioner was awarded rd a contract for construction of Internal Roads at 33 Bn. ITBP Karchia Sonapur, Guwahati. However, on account of not granting of the permissions by the Forest Department of the Government of Assam as well as the ban imposed by the District Administration, Kamrup (M), the Petitioner could not complete the work and resultantly after issuance of Show Cause Notice, the Petitioner’s contract was terminated and the Bank Guarantee invoked. The Petitioner therefore has approached this Court by filing the present writ petition.

4. It is the opinion of this Court that the issue involved in the instant proceedings relates to as to whether there was any breach of contract by the Petitioner or the Petitioner was restricted by conditions beyond its control to perform the terms of the contract. These aspects cannot be decided in a writ proceeding taking into account that evidence has to be led as to the existence of such circumstances which did not permit the Petitioner to carry out the performance of the work.

5. This Court during the course of hearing, enquired with Mr. R. Hussain, the learned counsel appearing on behalf of the Petitioner as to whether there is any dispute redressal forum taking into account that such disputed questions of facts has to be dealt with in a forum wherein evidence can be led.

6. Mr. R. Hussain, the learned counsel referred to Clause 25 of the General Conditions of Contract, 2014 of the CPWD which permits that such disputes to be decided by a particular forum in the manner stipulated therein. Clause 25 of the General Conditions of Contract, 2014 is reproduced herein under.

CLAUSE 25

Except where otherwise provided in the contract, all questions and disputes relating to the meaning of the specifications, design, drawings and instructions here-in before mentioned and as to the quality of workmanship or materials used on the work or as to any other question, claim, right, matter or thing whatsoever in any way arising out of or relating to the contract, designs, drawings, specifications, estimates, instructions, orders for these conditions or otherwise concerning the works or the execution or failure to execute the same whether arising during the progress of the work o

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