IN THE HIGH COURT OF JAMMU AND KASHMIR AND LADAKH AT JAMMU
RAJNESH OSWAL, J.
Saran Aircon Private Ltd - Appellant
Versus
Union Territory of J&K and others - Respondents
WP(C) No. 1380 of 2020 (O&M)
Decided On : 22-04-2022
Writ petition – Supply, installation – Mechanical Engineering Department – Annual Maintenance Contract – Testing and commission of three way mixing valves actuator and Butterfly valves along with allied job with air handling units installed at Convention Hall Canal Road, Jammu – Held, Be that as it may, it is very unfortunate that two Wings of a Government are fighting with each other so as to shift the liability upon each other, for work executed by petitioner for Government – It is not case in which work has been done by petitioner without any tender but work order was allotted to him after petitioner emerged as successful bidder in e-tender mentioned above floated by respondent No. 4 on behalf of Governor of State – Merely, shifting of the liability by respondent Nos. 1 to 6 and 7 upon each other cannot result in denial of the admitted amount to petitioner – Petition allowed.
JUDGMENT :
1. This writ petition has been filed by the petitioner-company for release of payment of contract amount of Rs.7,45,000/- for completion of work “supply, installation, testing and commission of three way mixing valves actuator and Butterfly valves along with allied job with air handling units installed at Convention Hall Canal Road, Jammu.”
2. It is stated that the petitioner being the lowest bidder was allotted the contract for the work mentioned above vide allotment order dated 16.02.2018 and the total value of the contract including all taxes and duties was Rs.7,45,000/-. The petitioner executed the contract within the stipulated time to the satisfaction of the respondents but despite completion of the work, the amount was not released in favour of the petitioner. The petitioner also sent a legal notice dated 12.04.2019 upon respondent Nos. 2, 4 and 7 for release of the aforesaid amount but the payment was not released. However, respondent No. 4 vide its reply dated 06.05.2019 stated that the matter was taken with the respondent No. 7 through various correspondence besides meeting him personally on the subject matter on 24.04.2019 wherein it was assured by the respondent No. 7 that as and when the funds are received, the payment shall be released to the petitioner. The respondent No. 4 vide its communication dated 02.05.2019 requested the respondent No. 7 to release the funds to the extent of Rs.7,45,000/-. Thereafter, the petitioner again made a representation dated 29.07.2020 to the respondents for release of the amount but nothing was done. The petitioner has placed on record copy of the allotment order and legal notice and various communications as referred above.
3. Reply stands filed by the respondents. In the reply filed by respondent Nos. 1 to 6, it is stated that vide communications dated 04.08.2018, 16.10.2018, 27.11.2018, 02.05.2019 and 14.05.2019, the respondent No. 7 was requested that the funds amounting to Rs.7,45,000/- may be released at the earliest to avoid litigation in the matter. It is also stated that respondent No. 7 and respondent No. 4 have drawn an agreement for operation and maintenance of HVAC, DG Sets, Servo Stabilizers and hot water generator in the Convention Center at Jammu on 09.11.2017 as a party 1st and party 2nd respectively. It is further stated that before the commencement of agreement, on 16.09.2017 certain shortcomings were observed at Convention Center and list of damaged/non-functional components/equipments in Convention Center was prepared and the Chief Engineer, Mechanical Engineering Department (MED) Jammu, respondent No. 2 herein vide letter dated 01.11.2017 was approached by respondent No. 4 to take up the matter with the Director Hospitality and Protocol Department Jammu i.e. the respondent No. 7 herein so that required works as per the list be carried out before the execution of Annual Maintenance Contract(AMC) of electro-mechanical equipments. It is further stated that respondent No. 2 took up the matter of shortcomings at the Convention Center with the respondent No. 7 vide communication dated 08.11.2017 and requested for a joint inspections of Engineering Incharge at Hospitality and Protocol with Executive Engineer MH&CH Division for detailed estimate for conducting repairs and funds to be released for the repairs. Subsequently, AMC will commence for smooth functioning of Convention Centre Jammu. It is further stated that after e-tendering, the work order amounting to Rs.7,45,000/- was placed with the petitioner company in the interest of Government work and respondent No. 4 has requested respondent No. 2 to take up the matter with respondent No. 7 vide letter dated 19.07.2018 to release the funds amounting to Rs.7,45,000/- so that contractor/petitioner's liability be cleared. In a nutshell, the stand of the respondent Nos. 1 to 6 is that the delay in making the payment to the petitioner is not on the their part but on the part of respondent No. 7.
4. Respondent No.
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SupremeToday
The significance of admitted liabilities, conflicting stands, and serious disputed questions of fact in contractual matters, and the discretion of the court in exercising jurisdiction.
The High Court has the jurisdiction to entertain a writ petition involving disputed questions of fact in contractual matters with the State and its instrumentalities.
Section 16 lays down that even interest is payable on amount entitled to by a unit.
Point of Law : Respondents have made the petitioner to execute the work out of his own funds, it is their bounden duty to reimburse the petitioner at the earliest, that too with interest.
A fully performed contract discharges all obligations, barring further claims unless legally warranted, as affirmed by prior judicial decisions and Supreme Court principles.
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