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2012 Supreme(Jhk) 1607

IN THE HIGH COURT OF JHARKHAND AT RANCHI
NARENDRA NATH TIWARI, J.
Bandhu Construction Pvt. Ltd. : Petitioner
Versus
State of Jharkhand & Ors. : Respondents
W.P.(C) No.1664 of 2011
Decided On : 6.11.2012

Advocates Appeared:
For the petitioner:Mr. Manoj Tandon, Advocate Mr. Shiv Shankar Kumar, Advocate
For the State : J.C. to A.G.

Headnote:Government Contract – Cancellation—delay---cause for delay supported by Executive Engineer in his report to department - several other contractors similarly aggrieved challenging order - decision of rescinding agreements without prior notice and opportunity of representation quashed by High Court – Respondents given liberty to proceed for fresh tenders. (Paras 6 to 8 and 10 to 13)

       2012(3) JLJR 60 - Followed.

JUDGMENT

In this writ petition, the petitioner has prayed for quashing the decision of the Executive Engineer, Kharkai Dam Division No.1, Musabani, Singhbhum East (respondent no.7) contained in letter no.133 dated 10.3.2011, whereby the petitioner was informed regarding action being taken for cancellation of the petitioner's agreement with the department. The petitioner has further prayed for quashing the order dated 5.5.2010 and directing the respondents to act in accordance with the terms and conditions of the agreement dated 17.12.2004, refund security money of the petitioner and pay the amount for the work which has been completed by the petitioner.

2. According to the petitioner, on selection in the tender for the construction of canal in Swarnarekha Project, two agreements were executed by the respondents in favour of the petitioner dated 17.12.2004 for construction of cross drainage works at Galudih Right Main Canal from Kilometer 32 to Kilometer 55. The work orders were issued to the petitioner on the same date vide letter nos. 885 and 886, of the office of the Executive Engineer, Kharkai Canal Division No.1, Musabani.

3. The petitioner started the work and completed almost 70% of works. At that stage, the Chief Engineer, Planning, Monitoring and Ayojan, Water Resources Department requested the Chief Engineer, Swarnarekha Multipurpose Project, Icha-Galudih Complex, Adityapur, Jamshedpur that the agreement of the petitioner along with several contractors be cancelled and the same be intimated to the Department. The said order was issued mainly on the ground that the petitioner failed to complete the work within the allotted time and even within the extended time. The petitioner filed representations dated 9.6.2010 and dated 15.6.2010 stating, inter alia, that the delay was not intentional. There was delay as the materials were not supplied by the department and under the circumstance beyond the control of the petitioner.

4. The Executive Engineer had also informed the Superintending Engineer that the work could not be completed by the petitioner in time because of non-supply of materials by the Department. The other concerned departmental authorities also intimated about the non-supply of materials by the Department in time to the petitioner.

5. Despite the said representations and official communication regarding the delay, the impugned order was issued informing the petitioner that the steps are being taken to cancel the agreement.

6. Learned counsel for the petitioner submitted that the same letter was issued to the other Contractors as well informing them regarding cancellation of their agreements on the same ground.

7. The other contractors, namely : Modi Projects Ltd., Ranchi; Jaishiv Construction Pvt. Ltd., M/s Engineers Syndicate, Ranchi and several other contractors, similarly aggrieved by the order of the Department, had challenged the said order by filing writ petitions before this Court. Since the points involved in all the writ petitions were similar, the same were taken up for hearing along with W.P.(C) No.2791/2010 (Modi Projects Ltd., Ranchi Vrs. The State of Jharkhand & Ors.) and were disposed of by a common order dated 3.4.2012. The decision of rescinding the agreements without giving prior notice and opportunity of representation was quashed with further direction.

8. Mr. Manoj Tandon, learned counsel appearing on behalf of the petitioner submitted that the present writ application is squarely covered by the said order passed in the batch cases (W.P.(C) No.2791/2010 and others) and this writ petition may be disposed of in terms of the said order.

9. Learned J.C. to A.G. has not disputed the said fact and fairly admitted that this writ petition is fully covered by the said decision and may be disposed of in terms of the order passed in W.P.(C) No.2791/2010 along with others.

10. Accordingly, in the said admitted position this writ petition is disposed of in the same term and the decision dated 5.5.2010





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