The court ruled that unilateral extension of a contract post-expiry is arbitrary, emphasizing adherence to contractual terms and the entitlement of the petitioner to operational reimbursements.

JUDGMENT :

DEEPAK ROSHAN, J.

1. Present writ application has been filed by Petitioner praying therein for following reliefs:-

(a) For issuance of an appropriate writ, order or direction, for quashing/setting aside the Letter No.1472 dated 28^th November, 2024 (Annexure-12) issued by the respondent no.4-Executive Engineer Road Division, Saraikela wherein for the period 24^th September, 2023 to 27^th November, 2024, alleged shortage remittance of toll have been determined in respect of Kandra-Chowka Toll Plaza (Gidibera Toll Plaza) despite the fact that the contract period has already expired on15^th July, 2023.

(b) For issuance of further appropriate writ, order or direction, including writ of declaration that action of the respondent-State of Jharkhand in unilaterally extending the period of the contract and/or compelling petitioner to continue the work of collection of toll is wholly illegal, arbitrary and violative of Article 14 of the Constitution of India and is even contrary to the terms and conditions of the agreement being Agreement No. 01/RFP/2021-22 dated 15^th July, 2021 (Anneuxre-2);

(c) For issuance of further appropriate writ, order or direction including writ of declaration declaring that after expiry of period of contract pursuant to Agreement No.01/RFP/2021-22 dated 15^th July, 2021 (Annexure-2) which expired on 15^th July, 2023, the status of the petitioner regarding total toll collection is that of an agent of respondent-State of Jharkhand for deploying specified category of personnel and supervising them for collection of user fee;

(d) For issuance of further appropriate writ, order or direction including writ of declaration, declaring that the respondent-State of Jharkhand, post expiry of the period of contract i.e., from 15^th July, 2023 till the date of relieving of the petitioner is only entitled to received payment of actual collection of toll less administrative and operational expenses plus supervision and service charges incurred by the petitioner for collection of toll, especially because respondents, contrary to the terms of agreement, have compelled the petitioner without even any extension order to collect toll from the toll plaza.

(e) For issuance of further appropriate writ, order or direction, directing the Respondent authorities to relieve the Petitioner from toll plaza being Kandra-Chowka Toll Plaza (Giddibera Toll Plaza) and to take handover the said toll plaza from the petitioner, and (f) For issuance of any other appropriate writ(s)/order(s)/ direction(s) as Your Lordships may deem fit and proper in the facts and circumstances of the case.

2. Short facts of the case is that Road Construction Department, being an executive authority under Rule 2(f) of Jharkhand Highways Fees (Determination of Rate and Collection), Rules, 2011 published a Notice Inviting Tender for appointment of User Fee Collection Agency for Kandra- Chowka Toll Plaza, situated at Kandra-Chowka Road, vide N.I.T. dated28.05.2021.

3. Petitioner participated in aforesaid tender and, having been declared as Highest Bidder, was awarded the work of User Fee Collection and an agreement being Agreement No.01/RFP/2021-22 dated 15^th July, 2021 was executed between Petitioner and Executing Authority (Road Construction Department) which was valid for a period of two years i.e. up to 15.07.2023.

4. Although contract period expired on 16^th July, 2023 and, as per agreement and RFP document, contract could have been extended for a further period of maximum six months with mutual consent of both the parties, Petitioner, as yet, has not been relieved from the work of collection of toll as User Fee Agency.

5. Petitioner, immediately prior to expiry of contract, wrote letter to executing authority for taking over of Toll Plaza from it, but no action was taken by executing authority. In fact, Petitioner has been repeatedly requesting Respondent-authorities to relieve it from toll operation, but, on one hand executing authority has not relieved the Petitioner fro