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2022 Supreme(J&K) 124

IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR
Sanjay Dhar, J.
M/s. Amira Engineers – Petitioner
Versus
Telecommunications Consultants India and Ors. – Respondents
OWP No.860/2007
Decided On : 23-03-2022

Advocates:
Advocate Appeared:
For the Petitioner:Mr. M.Y. Bhat, Sr. Advocate with Mr. R.A. Bhat, Advocate
For the Respondent:Mr. N.A. Beigh, Sr. Advocate and Mr. Sofi Manzoor, Advocate

Headnote:

Constitution of India-Article 226-Work contract-Petitioner cannot be penalised for acts of an agency over which he has no control and his payment cannot be stopped just because works executed by him have been damaged by a third agency-It is not a case where damage has been caused to works during their execution when site was under charge of petitioner but it is a case where petitioner was stopped to execute further work and thereafter damage to work executed by him was caused by a third agency-Respondents are not justified in withholding whole amount due under the contract allotted to him in year 2003-There is no justification for respondents to withhold balance payment after setting off their claim with regard to cost of material alleged to have been retained by petitioner-Jurisdiction under Article 226 is not excluded in contractual matters-Respondents directed to release amount of Rs.24,75,920/- which constitutes differential amount between amount due in respect of contract of year 2003 i.e. Rs.28,07,975/- plus Rs.7,27,945/-, amount due in respect of contract of year 1998 less by amount of Rs.10,60000/- which constitutes cost of material allegedly retained by petitioner-Petitioner is also held entitled to interest @ 9% per annum. (Paras 10, 11, 12, 14 and 18)

Result-Writ Petition Partly allowed.

JUDGMENT :

Sanjay Dhar, J.-The petitioner has filed the instant petition seeking a direction upon the respondents to release an amount of Rs.12,49,517/- along with CDR of Rs.20,000/- in respect of the work/contract executed by him for laying telephone cables in Sanatnagar Srinagar in the year 1998. A further direction upon the respondents to pay an amount of Rs.28,07,975/- to the petitioner for the work executed and completed by him for laying telephone cables at Kulgam in the year 2003 has also been sought. The petitioner has also claimed interest @ 24% per annum.

2. The case set up by the petitioner is that in the year 1998, respondent No.1 allotted a contract for laying telephone cables at Sanat Nagar, Srinagar, in favour of the petitioner and the contract was completed by him within the stipulated time. It is averred that the final bill was prepared and furnished by the respondent No.1 for an amount of Rs.10,27,423/- and the same was submitted to the respondent No.3 for release of payment in favour of the petitioner. It is alleged that respondent No.3 released the payment in favour of respondent No.1 but the same in turn was not released by the said respondent to the petitioner. According to the petitioner, a further sum of Rs.4.00 lacs is also outstanding against the respondents.

3. The other part of the claim that has been projected by the petitioner is that in the year 2003, he was allotted contract for laying telephone cables at Kulgam by respondent No.1. However, during execution of the said work, the petitioner was asked to stop the work at site because of the directions given by respondent No.3. At the time when the execution of the work was stopped, the petitioner had completed the work for an amount of Rs.28,07,975/- and the final bill in respect of the same was raised which was processed by the respondents. It is alleged that R&B Department of the State Government had caused some damage to the completed work, as a result of which a dispute arose between respondents and R&B Department and the respondents asked the R&B Department of the State Government to pay the amount of damages and compensation directly to them and the petitioner was asked to wait for some time for payment of his dues.

4. According to the petitioner, the amounts incurred by him in executing the works allotted to him in the year 1998 and 2003 are admitted the by respondents but in spite of this, they are illegally withholding the admitted dues merely on the pretext that the completed works have been damaged by R&B Department of the State Government. It is contended by the petitioner that the dispute between the respondents and the R&B Department of the State Government has nothing to do with his claim for payment of his dues and the same cannot be made a pretext to deny him the dues.

5. Reply on behalf of respondents No.1, 2 and 4 has been filed and the said reply has been adopted by respondent No.3 as well. It is contended in the reply that the writ petition involves disputed questions of fact which arise out of a civil contract, as such, the same cannot be adjudicated upon in the writ proceedings. It is further averred that so far as the contract of 1998 is concerned, only a sum of Rs.7,27,945/- is payable whereas nothing is due to the petitioner in respect of contract allotted in the year 2003. At the same time it has been contended by the respondents that respondent No.1 is entitled to recover a sum of Rs.10.6 lacs from the petitioner. The respondents have based the said contention on Clause 68(3) of the contract proposal, according to which a sum or money due and payable to a contractor can be appropriated by the respondents and set off against any claim of the respondents for due payment of sum of money arising out of and under any other contract. Thus, according to the respondents, respondent No.1 is entitled to set off an amount of Rs.10.6 lacs from the contractor towards the cost of the material that has not been returned by the petitio

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