Money claims under extraordinary writ jurisdiction can only be entertained in exceptional circumstances, and the court may not issue a writ of mandamus for releasing outstanding amounts in a contractual dispute.

The present writ petition has been filed for quashing letter no.CUJ/P122 dated 21.12.2016 (Annexure-8 to the writ petition) issued under the signature of the Registrar (I/C), Central University of Jharkhand (in short ‘CUJ’), whereby it has been informed that pending payment of the petitioner has been withheld as per the direction of the Central Bureau of Investigation, Anti-Corruption Bureau, Ranchi and the payment will be considered once “No objection for release of payment” is received from it. It is also prayed for issuance of direction upon the respondents, particularly, respondent no. 2 to release the outstanding amount of Rs.11.24 crores to the petitioner against the work done by it along with penal and compensatory interest @ 18% per annum with effect from the date on which the said amount fell due.

2. The factual background of the case, as stated in the writ petition, is that pursuant to the Notice Inviting Tender (NIT) No.CUJ/OSD(Project)/2011-12/1012 dated 22.10.2011 issued by the CUJ, the petitioner got empanelled in Group-C category. The empanelled contractors were advised to submit their rates for undertaking construction works (Civil and Electrical) based on Delhi Schedule of Rates of the year 2007 (DSR-2007). The petitioner quoted the rate 58% above the DSR-2007. However, it was asked by the respondent-University to reduce the rate 54% above the DSR-2007, which was accepted by the petitioner. Thus, two separate agreements were executed between the CUJ and the petitioner for execution of construction work of (288+288) i.e. 576 number of 3 seated rooms of U.G Boys’ Hostel along with dining hall and other allied structures of the CUJ at its permanent campus in Mauja Cheri/Manatu, at a total agreement value of Rs.20.00 Crores (Rs. 10.00 Crores for each agreement). The entire work was completed with strict adherence to all the quality norms within the scheduled time and the engineers inspected the building so constructed and recorded their satisfaction in the site order book. The building was also maintained up to Defect Liability Period, and the petitioner continuously requested the respondent-CUJ to take over the possession of the building but it failed to take over the possession of the same. Subsequently, an FIR was lodged by the S.P/HOB, CBI, ACB Ranchi on 30.10.2014 alleging, inter alia, that the then Vice-Chancellor and other employees of CUJ had connived with contractors/firms/companies in respect of allotment of work for construction of building and infrastructure at the permanent campus of CUJ at Cheri-Manatu Ranchi. It was further alleged that works of similar nature were allotted to different categories of contractors at different rates which caused wrongful loss to CUJ and correspondingly wrongful gain to the accused persons. In the said case, charge-sheet has also been submitted alleging that the contractor in Group-D was awarded the work at 49% above DSR-2007, whereas similar works were awarded to the contractors in Group-C at 54% above DSR-2007 and to the contractors in Group-B at 56% above DSR-2007 which caused a total loss of Rs.3,56,66,439/- to the CUJ. It has been alleged against the petitioner that an amount of Rs.43,52,503/- has been paid in excess to it. The petitioner received a letter dated 21.12.2016 from the respondent-CUJ through its Registrar (I/C) whereby it has been informed that, on the direction of the CBI, ACB, Ranchi, the pending payment of the petitioner has been withheld and the same will be processed once ‘No Objection’ is received from the CBI.

3. The learned senior counsel for the petitioner submits that non-release of the payment has broken the financial backbone of the petitioner inasmuch as the petitioner has been facing tremendous pressure from the market creditors and the bankers as the petitioner had purchased materials from the suppliers on credit and had taken loan from the bankers for working capital. It is also