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2023 Supreme(Jhk) 782
IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAJESH SHANKAR, J.
M/s. Triveni Engicons Pvt. Ltd., through its authorized signatory Uttam Kumar Mallick - Petitioner
Versus
The State of Jharkhand and Ors. - Respondents
W.P.(C) No. 3166 of 2021
Decided On : 23-01-2023
For the Petitioner: Mr. Gaurav Abhishek.
For the Respondents: Mr. Ashok Kumar Yadav.
Public law remedy under Article 226 of the Constitution of India is not available for breach of contractual obligations.
Headnote:
Bonus Claim - Contractual Dispute - Clause 50.1 of SBD - Section 3 - Summary: The court discussed the claim for bonus under Clause 50.1 of the Conditions of Contract of Standard Bidding Document (SBD) Section 3. The court referred to various legal principles and held that the matter is purely contractual and does not involve a public law element. The court dismissed the writ petition as not maintainable with liberty to seek alternative recourse for the bonus claim.
Fact of the Case:
The petitioner filed a writ petition seeking direction to release the bonus amount accrued under Clause 50.1 of the Conditions of Contract of SBD Section 3 for completing a road construction work six months prior to the assigned date. The respondents disputed the claim, stating that the work was not completed as per the agreement.
Finding of the Court:
The court found that the claim for bonus was a purely contractual dispute without a public law element. It held that the writ petition was not maintainable and dismissed it, granting the petitioner liberty to seek alternative recourse for the bonus claim.
Issues: The main issue was the admissibility of the bonus claim under Clause 50.1 of the Conditions of Contract of SBD Section 3.
Ratio Decidendi: The court's decision was based on the principle that public law remedy under Article 226 of the Constitution of India is not available for breach of contractual obligations, and the proper recourse for the affected party is to invoke civil remedy.
Final Decision: The writ petition was dismissed as not maintainable with liberty for the petitioner to seek alternative recourse for the bonus claim.
JUDGMENT :
The present writ petition was initially filed for issuance of direction upon the respondent authorities to immediately release the bonus amount accrued in favour of the petitioner in terms with Clause 50.1 of the Conditions of Contract of Standard Bidding Document (SBD) (Section-3) with respect to the work of “widening & strengthening of Potka-Kudada Road (0.00 k.m. to 11.50 k.m.)” allotted to it pursuant to Agreement No. 01SBD/2014-2015 dated 21.05.2014 owing to the fact that it has completed the said work six months prior to the assigned date.
2. A counter affidavit has been filed on behalf of the respondent sworn by the Executive Engineer, Road Construction Department, Road Division, Jamshedpur (the respondent no. 6) annexing letter no. 1370 dated 01.09.2021 (Annexure-W to the said counter affidavit) issued by the Chief Engineer (Communication), Road Construction Department, Ranchi (the respondent no. 4) to the respondent no. 6 informing that since the petitioner has not completed the items in full as per the agreement, it does not fulfil the requirement for payment of bonus in terms with Clause-50.1 of the Conditions of Contract of SBD (Section-3).
3. Subsequently, the petitioner by filing I.A. No. 6619 of 2021 has sought challenge to letter no. 1370 dated 01.09.2021 issued by the respondent no. 4.
4. Pursuant to filing of the counter affidavit on behalf of the respondents, a rejoinder affidavit to the same has also been filed on behalf of the petitioner.
5. Heard learned counsel for the parties and perused the content of the writ petition.
6. The petitioner by filing the present writ petition has primarily claimed bonus in terms with Clause-50.1 of the of the Conditions of Contract of SBD (Section-3) on the ground that the work in question has been completed six months prior to the assigned date and a completition certificate to that effect has also been issued to it on 26.09.2020 whereas the respondents in their counter affidavit have disputed the said claim of the petitioner on the ground that it has not completed the items in full as per the agreement and hence, it does not fulfil the requirement for payment of bonus in terms with Clause-50.1 of the of the Conditions of Contract of SBD. Therefore, the bonus claimed by the petitioner is not admissible in terms with the aforesaid clause.
7. In the case of Joshi Technologies International Inc. Vs. Union of India and others reported in (2015) 7 SCC 728, the Hon’ble Supreme Court has held as under:-
“69. The position thus summarised in the aforesaid principles has to be understood in the context of discussion that preceded which we have pointed out above. As per this, no doubt, there is no absolute bar to the maintainability of the writ petition even in contractual matters or where there are disputed questions of fact or even when monetary claim is raised. At the same time, discretion lies with the High Court which under certain circumstances, it can refuse to exercise. It also follows that under the following circumstances, “normally”, the Court would not exercise such a discretion:
69.1. The Court may not examine the issue unless the action has some public law character attached to it.
69.2. Whenever a particular mode of settlement of dispute is provided in the contract, the High Court would refuse to exercise its discretion under Article 226 of the Constitution and relegate the party to the said mode of settlement, particularly when settlement of disputes is to be resorted to through the means of arbitration.
69.3. If there are very serious disputed questions of fact which are of complex nature and require oral evidence for their determination.
69.4. Money claims per se particularly arising out of contractual obligations are normally not to be entertained except in exceptional circumstances.
70. Further, the legal position which emerges from various judgments of this Court dealing with different situations/aspects relating to contracts entered into by the State
