SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2012 Supreme(Jhk) 504

IN THE HIGH COURT OF JHARKHAND AT RANCHI
NARENDRA NATH TIWARI, J.
Modi Projects Ltd., Ranchi
Jaishiv Construction Pvt. Ltd., Ranchi
Engineers Syndicate, Ranchi
National Construction Company, Jamshedpur
Shahzadi Construction Private Ltd., Ranchi
Versus
State of Jharkhand & Ors.: Respondents
WP(C) No. 2642, 2810, 2815, 3534, 2791 of 2010 Cont Cases (Civil) No. 668 of 2011
Decided on: 3.4.2012

Advocates appeared:
For the Petitioners: M/s Rajesh Kumar, Amit Kumar (in 2642, 3534 & 668) M/s M.S. Mittal, A.K. Yadav (in 2791)
For the Respondents: Mr. A.K. Sinha.

Headnote:A) Government Contract – Impugned order of rescinding the contract with the Government without any prior notice being violation of the principle of natural justice implicit in Article 14, it is within the jurisdiction of High Court to set aside the same. (Paras 39 and 44)

       B) Constitution of India-Article 226- Existence of alternative remedy is not absolute fetter on the exercise of writ jurisdiction of a constitutional court like the High Court or Supreme Court. (Para 42)

Order

The petitioners in this batch of writ petitions are the contractors. They were allotted work for construction of residual earth work and P.C.C lining in different lots between KM 22.50 KM to KM 53.76 of Galudih Right Main Canal in Kharkai Link Canal Division, Musbani under the Subernrekha Multipurpose Project. Deeds of Agreements were executed between the petitioners and the State-respondent. Works to the extent of 60-65 % were executed as per the terms of the agreements. Suddenly the respondent took decision to rescind their agreements. The decision was communicated by the Chief Engineer, Project Monitoring and Planning, Water Resources Department to the Chief Engineer, Subernrekha Multipurpose Project, Adityapur by letter dated 5.5.2010 asking him to rescind the contract of the petitioners in terms of the agreement and to inform the department. In all the writ petitions one of the prayers has been made for quashing the said order dated 5.5.2010. The petitioners have also prayed for quashing the subsequent order whereby the petitioners’ agreement was rescinded and the security money has been forfeited. The practitioners have further prayed for an order for closure of the contract agreement without any liability and for a direction to release all the securities of the petitioners taken in connection with their agreement. The petitioners have also alternatively prayed for a direction to allow them to complete the remaining work at the modified rate, which has now been offered to new tenderers.

2. In Contempt Case (Civil) No. 668/2011, the petitioner has sought for a suitable action / punishment against the respondents – opposite parties for proceeding in the matter further by re-inviting e-Tender in spite of the interim order dated 15.6.2011 of this Court passed in W.P.(C) No. 2642/2010 for not taking any step prejudicial to the interest of the petitioner.

Facts

3. A tender was floated by the Executive Engineer, Kharkai Link Canal Division, Musabani, District -East Singhbhum for construction of residual earth work and P.C.C lining of Galudih Right Main Canal within the KMs, as aforesaid.

4. The petitioners submitted their tenders. After due scrutiny of the tender, work was allotted to the petitioners.

5. A contract agreement was executed in Standard Form F-2 of PWD between the petitioners and the respondent No.7 with provisional rates, subject to condition of approval from S. R. Committee, after submission of the performance guarantees.

6. Accordingly, the petitioners furnished Bank guarantees of several Lacs.

7. According to the agreement, the work was to be completed within 16 months.

8. The petitioners, thereafter, deployed their men and machinery at the site and started the work.

9. Soon thereafter, the villagers started causing hindrances and disrupting the work. They stopped the work for pressing their demand that the machinery like Pavers and Batching plants for concrete work should not be used. They started pressurizing for their employment as skilled, although being unskilled. The ultras and Naxal outfits also stopped the work for not paying levy to them.

10. The matter was reported to the concerned authorities including the respondent No.7. The Executive Engineer, Kharkai Link Canal Division by Letter No. 288 dated 25.4.2006 addressed to the Superintending Engineer, Kharkai Link Canal Circle, Adityapur informed about the said obstruction by the villagers and the extremists and requested him for taking steps for setting up a Police Picket of 30-40 armed police.

11. The Chief Engineer, Subernrekaha Multipurpose Project, Adityapur by Letter No. 900 dated 29.4.2006 also admitted that the work is being impeded by the ultras and Naxals in the area of the Village - Surgi to Murathakura and requested the Deputy Commissioner to deploy appropriate police force.

12. There were several communications to that regard at different levels.

13. The said area is highly extremists (MCC) infested. The Members of Parliament and the































































Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top