The main legal point established in the judgment is that the interpretation and implementation of a clause in a contract should be adjudicated by a civil court or arbitration, if provided under the contract, and not subject to a writ petition.

1. The petition is admitted for hearing. With the consent of the learned counsel for the parties, the matter is heard finally.

2. In this petition, the petitioners, inter alia, seek writ of mandamus commanding the respondents to scrap the existing contract and to float the new tenders in respect of the transportation contracts allotted to the petitioners. The petitioners also seek writ of certiorari for quashment of the decision taken by the respondents to reduce the distances in respect of the contracts awarded to the petitioner from the existing distances at the time of the floating of the Notice Inviting Tenders on the opening of the Chenani Nashri Tunnel. The petitioners also seek quashment of office order dated 29.05.2017 to the extent it reduces the existing revised freight rates. The petitioners further seek writ of prohibition commanding the respondents not to enforce the office order dated 29.05.2017 to the extent it pertains to the petitioners. The petitioner further seek writ of mandamus commanding the respondents to continue to make the payments in respect of the work allotted to it as per work orders issued by the respondents for the above referred stations /contracts. In order to appreciate the petitioners’ grievance, few facts need mention which are stated infra:

3. The petitioners are proprietorship concerns engaged in running the transportation companies for the last several years. The Food Corporation of India vide online tender notice dated 15.03.2016, invited bids from the eligible contractors for movement of stocks by road from the FSD New Godown, Jammu to various Centres in Jammu and Kashmir Region. Accordingly, a notice inviting tender was issued on 15.03.2016 by which bids were invited for 15 destinations. The petitioners participated for the majority of the destinations. From the perusal of the notice inviting tenders, it is evident that the period of contract was for 2 years except three stations namely Kargil-1, Kargil-11 and FSD Phyang. For the aforesaid stations the period of contract was one year. The tender notice indicated respective distances in kilometers from FSD New Godown Jammu to respective destinations. However, the petitioners in OWP No.1370/2017 were declared successful bidders in respect of the following contracts:

Petitioner No. 1.

a. FSD New Godown Jammu to FSD Kishtwar.

b. FSD New Godown Jammu to FSD Khillani.

AND

Petitioner No. 2:

a. FSD New Godown Jammu to FSD Srinagar.

b. FSD New Godown Jammu to FSD Baramulla.

c. FSD New Godown Jammu to FSD Kupwara

d. FSD New Godown Jammu to PEG Baramulla

e. FSD New Godown Jammu to FSD Mir Bazar

f. FSD New Godown Jammu to FSIJ Phyang

g. FSD New Godown Jammu to FSD Budgam.

h. FSD New Godown Jammu to PEG Budgam.

4. The contracts were allotted to the petitioners and the petitioners have been executing the work allotted to them. It is the case of the petitioner that before starting the tender process in exercise of powers under Clause XVIII (v) of the Model Tender Form, Chief Engineer, Public Works Department fixed the distances which were final and binding on the contractors. The Regional Office of the Food Corporation of India communicated an order dated 29.05.2017 to the petitioners by which the decision was taken to reduce the distance of the contracts including the contract of the petitioners. The details of the contracts being executed in respect of the following destinations with their existing distance and revised distance and existing rates and revised rates by petitioners in OWP No.1370/2017 are as under:

Petitioner No. 1.

      Petitioner No. 2.