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2021 Supreme(Jhk) 180

IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAJESH SHANKAR, J.
M/s Tahal Consulting Engineers India Private Limited - Petitioner
Versus
The State of Jharkhand & Ors. - Respondents
W.P.(C) No. 1427 of 2021 With W.P.(C) No. 1428 of 2021
Decided On : 08-04-2021

Advocates Appeared:
For the Petitioner: Mr. Pandey Neeraj Rai, Mr. Akchansh kishore, Mr. Rohit Ranjan Sinha.
For the State : Mr. Mohan Dubey, A.C. to A.G.

Writ jurisdiction cannot be used solely for granting interim relief. Disputed factual matters are not within the purview of writ jurisdiction.

Headnote:

Bank Guarantees - Contract Dispute - Clause 49.3, Conditions of Contract

Fact of the Case:

The petitioner sought to quash letters informing of recommendation to forfeit mobilization advance or encash Bank Guarantees and requested extension of time for project completion. The respondents alleged negligence and issued show cause notice.

Finding of the Court:

The Court found that the dispute involved factual nature and could not be adjudicated under writ jurisdiction. The petitioner's claim for interim relief was not exceptional. The Court dismissed the writ petitions and advised the petitioner to approach a civil court or redressal forum.

Issues: Dispute over project completion delay, invocation of Bank Guarantees, and extension of time. Jurisdiction of the Court to grant interim relief.

Ratio Decidendi: Writ jurisdiction cannot be used solely for granting interim relief. Disputed factual matters are not within the purview of writ jurisdiction.

Final Decision: The writ petitions were dismissed, and the Court advised the petitioner to seek redressal in a civil court or appropriate forum.

JUDGMENT :

Both these writ petitions have been filed for quashing various letters whereby the petitioner has been informed that a recommendation is being made to higher officials of the Drinking Water and Sanitation Department, Government of Jharkhand to forfeit the mobilization advance or to invoke/encash the Bank Guarantees furnished in lieu of the mobilization advance. Further prayer has been made for issuance of direction upon the respondents to take a decision on the petitioner’s request for extension of time made in terms with Clause 28.2 & 28.3 of the Conditions of Contract. The petitioner has also prayed for staying the invocation and/or encashment of the Bank Guarantees furnished in connection with the aforesaid contracts.

2. Mr. Pandey Neeraj Rai, learned counsel appearing on behalf of the petitioner, submits that the petitioner was awarded two contracts, one for South Zone [subject matter of W.P.(C) No. 1427 of 2021] and another for North Zone [subject matter of W.P.(C) No. 1428 of 2021], to carry out survey, designing, drawing and construction of RCC Intake Well-cum-Pump House, gang-way, water treatment plant, water reservoir, water distribution network, supply & installation of pumps, maintenance etc. for Multi-villages Scheme of Gobindpur & Nirsa Block, Rural Water Supply Scheme under the Department of Drinking Water and Sanitation, Government of Jharkhand, Division No.1, Dhanbad, Jharkhand. The contract value for Gobindpur & Nirsa Block (South Zone) was Rs.1,87,44,97,227/- and for Gobindpur and Nirsa Block (North Zone) was Rs.3,34,94,56,939/-. It is further submitted that as per the terms of the contract, the petitioner submitted the Bank Guarantees to cover the mobilization advance @10% of the contract price. The petitioner started execution of the said works with sincerity and diligence, however, due to laches on the part of the respondents, the same could not be completed within the stipulated period. It is further submitted that Clause 28 of the Conditions of Contract provides for extension of the intended completion date and as such the petitioner requested for extension of time giving full justification vide its numerous letters, but all went in vein and no decision was taken as per the mechanism provided in the contract, rather a letter dated 13.02.2021 was sent to the petitioner by the respondent No.5 alleging that the petitioner was making excuses for not completing the said works in time informing that the recommendation for forfeiting the mobilization advance was being made to the higher officials. It is further submitted that the petitioner wrote letter dated 09.03.2021 to the respondent No.5 requesting him not to take any hasty action with respect to invocation of the Bank Guarantees in view of the Conditions of the Contract which allow repayment of mobilization advance either by the original completion date or by expiry of the extended time for completion in the case where extension is applicable. The petitioner again wrote letter dated 19.03.2021 requesting the respondent No.5 not to invoke the Bank Guarantees. However, the respondent authorities have taken steps towards invocation of the Bank Guarantees and the respondent No.5 has requested the manager of the petitioner’s Bank i.e. Yes Bank Limited not to allow the petitioner to get the Bank Guarantees encashed and to allow encashment of the Bank Guarantees only through the person authorized or nominated by the respondent No.5. It is further submitted that the decision for forfeiture of mobilization advance or invocation of Bank Guarantees is absolutely arbitrary, illegal and unwarranted in absence of any decision taken by the respondents on the petitioner’s request for extension of time. It is also submitted that the respondents have failed to take and convey any decision on the request for extension of time, despite long lapse of the timelines provided in the mechanism as stipulated in Clause 28.2 & 28.3 read with Clause 32 of the Conditions of C

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