IMPORTANT POINT
The court established that state actions must comply with legal and environmental regulations, and arbitrary actions that violate constitutional rights can be challenged through writ petitions, even in the context of contractual disputes.

JUDGMENT :

Deepak Roshan, J

Heard learned counsel for the parties.

2. The present writ application has been filed by petitioner primarily seeking following reliefs:-

(a) Issue an appropriate writ, order or direction or a writ in the nature of Mandamus directing the Respondents to make a final decision for the closure of the contract in terms of the representation dated 05.07.2021 made by the Petitioner before the Respondents vis a vis its non-execution due to the restrictions imposed by the DGMS vide its Order dated 18.11.2015 (Annexure-9 of the Writ Petition) and also in light of the Respondents decision of issuance of the tender in complete violation and disregard of the environment clearance rules, and direct the Respondents to pay the dues of the Petitioner in accordance with the law.

“Issue an appropriate writ, order or direction or a writ in the nature of Mandamus restraining/injuncting the Respondents from taking any coercive steps against the Petitioner and be further pleased to direct the parties to resolve disputes and differences through a dispute resolution mechanism/Arbitration in accordance with the Circular dated07.04.2017, issued by Coal India Limited, Civil Engineering Division.”

(b) For issuance of appropriate writ/order/direction commanding upon the Respondents showing them cause as to how can they justify the work tendered vide Tender Notice No. 147 vide Ref. No. BCCL/GM(CMC)/F-HEMM-OS/2014/2375 dated 11.06.2014 in the facts and situations and also in the light of withdrawal of permission by the DGMC and upon receiving their reply pass appropriate orders for taking suitable actions against the concerned authorities of the Respondents who have been instrumental in notifying the tender works without ascertaining the factual and technical viability of the work in question;

AND/OR

(c) The Petitioner further prays for issuance of a writ, order or direction commanding upon the respondents to recall its Notices dated 7/9.5.2016 (Annexure-10) and 28.05.2016 (Annexure-13) which have been issued by the respondents without any application of mind and in teeth of the direction given by the DGMS, which is binding and also in complete ignorance of the facts and situations narrated by the petitioner ide its various letters and communications including the letters dated 17.11.2015 (Annexure-8) and 25.5.2016 (Annexure-12); whereby the petitioner has, on the basis of the facts and circumstances narrated in the said representations/letters, prayed for foreclosure of the aforesaid contract;

3. Brief facts of the case is that Respondent-Bharat Coking Coal Limited (for short ‘BCCL’), vide its Tender Notice No. 147 dated 11.06.2014, published a Notice Inviting Tender for its Maheshpur colliery of Govindpur Area for the following works:-

(i) Removal of Overburden – 226.47 LM; and

(ii) Extraction of coal – 67.28 LMT for five years.

4. Petitioner participated in the aforesaid tender and was issued Letter of Acceptance for above-referred works on 18.12.2014 and, pursuant to which, Petitioner submitted three separate Bank Guarantees each amounting to Rs. 1.00 Crore i.e. total Bank Guarantees of Rs. 3.00 Crores on 19.03.2015 for due performance of the contract.

5. On 15.05.2015, Petitioner was handed over the site and mutual schedule of work was agreed between Petitioner and Respondent-BCCL vide letter dated 25.06.2015, wherein work was to start on 1st July, 2015. It is an undisputed fact that Petitioner started the work and continued to execute the work till 01.10.2015, but Petitioner was facing acute hindrances from local people due to problems of land acquisition and re-habilitation and re-settlement.

6. The case of the Petitioner is that Director General, Mines Safety, Dhanbad (for short “DGMS”) on 12.11.2013 granted permission to BCCL for Maheshpur Colliery permitting use of explosives for blasting work up-to a distance of beyond 100 mete