2011 (3) JLJR 40
R.K. Merathia, J.
M/s Meinhardt Singapore Pvt. Ltd. (India Branch).. . Petitioner
Vs.
The State of Jharkhand & Anr. ...Respondents
WP(C) No. 4009 of 2010
Decided on : 25.4.2011
In this writ petition, petitioner has prayed for payment of its admitted dues.
2. It is submitted by Mr. M.S. Mittal, learned Senior Counsel appearing for the petitioner that petitioner was awarded work pursuant to a tender in two parts. The first part was related to drawing and designing and the second part was with regard to construction of Sewerage and Drainage System in Ranchi. The first part was completed and the Ranchi Municipal Corporation ('RMC' for short) gave a satisfactory work completion certificate and returned the performance bank guarantee to the petitioner, and thereafter RMC has been writing to the State Government for payment of the bills, but the same are withheld from 17.1.2008 and 31.5.2008 when the final bills were raised. He further submitted that after about two years of completion of work by the petitioner, a P.I.L. being W.P.(P.I.L.) No. 735 of 2010 was filed by some unknown person, set up by the unsuccessful bidders/and the persons who wanted to harass the petitioner, and on the basis of an innocuous order passed on 13.9.2010, a vigilance inquiry got started only to harass the petitioner, and on the ground of pendency of such inquiry the payment has been withheld. He lastly submitted that the respondents be directed to pay the dues with compensatory interest.
3. On the other hand, Mr. Anil Kumar Sinha, learned Advocate General appearing for respondent nO.1-State submitted that in view of the arbitration clause contained in Clause 15 of the agreement, this writ petition is not maintainable. He further submitted that petitioner should make a representation and the admitted dues, if any will be paid to him and for the balance claim, if any the petitioner can invoke Clause 15 of the agreement. He further submitted that in view of Section 5 of the Arbitration Act, this Court may not exercise writ jurisdiction. He further submitted that in view of Section 65 of the Indian, Contract Act petitioner can claim compensation.
4. Learned counsel appearing for the respondent no. 2-RMC submitted that the Corporation has been asking the State Government for payment of the admitted dues. but the Government has not sanctioned the amount. He further submitted that the petitioner can invoke Clause 15 of the agreement.
5. The records of this case were called for by this Court. According to the RMC the admitted dues are payable to the petitioner The respondents-State could not show what type of dispute or controversy is involved in such payment. It was submitted by learned Advocate General that the work was given to the petitioner after relaxing some provisions, though in such circumstances fresh tender should have been invited. But, on going through the records, especially the notes of the Chief Minister dated 26.3.2011 at page 32,- of the file, it appears that the matter was considered including the following opinion of the then Advocate General.
"I further find that three audit reports of Meinhardt for the last three years had been submitted by the said company and therefore, there was even no technical infirmity or flaw in considering the offer of the said company. As mentioned above, the cabinet has approved the allotment of, work to said Meinhardt twice ......... Thus, in my opinion, Meinhardt should be approached to expedite the work." .
It has been inter alia noted that now steps are to be taken by the Urban Development Department, and not by the Vigilance Cell, as suggested by the Chief Secretary; and that the scheme approved by the Cabinet should be implemented; and that the work of Sewerage and Drainage System in Ranchi Town should be done in phased manner, without delay, as decided by the Department.
6. Thus, the State-respondents have not been able to show the nature of dispute or controversy for which the petitioner should be asked to file representation and/or invoke Clause 15. It •further appears that the RMC had given work completion certificate and had released the performance bank guarantee to the petitio
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.