Arbitrary executive actions lacking jurisdiction in contract matters are void and subject to judicial review under Article 226, ensuring compliance with natural justice.

JUDGMENT :

Shree Chandrashekhar, A.C.J.

Aggrieved by the direction contained in the letter dated 15^th February 2021 issued by the Executive Engineer requiring M/s A. K. Builders not to continue with the works under Agreement No. SBD-IFB-07/19-20, the petitioner-Firm has approached this Court.

2. In the writ petition, the following prayers have been made:

I. For quashing and setting aside the order as contained in letter no. 58 dated 15.02.2021 (Annexure-8), by the office of Executive Engineer, Irrigation Division, Pakur, respondent no. 5 whereby and whereunder the said respondent has in reference to some oral instructions given by the respondent no. 2 in the most arbitrary and illegal manner has ordered to stop the work in lieu of agreement no. SBD-IFB-07/19-20 till further orders and no order for resumption has been passed only at the instance of the Secretary, Water Resources Department which is completely dehors the jurisdiction of the said authority moreover he is not even privy to the agreement and no law/rules or provisions gives such power to him, which is in the teeth of the pronouncements of the Hon’ble Supreme Court and the Courts of the land.

II. For constituting an independent committee to survey the site and make a detailed report on the execution of work done by the petitioner and on the said basis direct upon the respondents concerned for payment of the work executed by the petitioner in terms of agreement no. SBD-IFB-07/19-20 till the stoppage of the work.

III. For issuance of direction upon the respondents to release all the legally paid dues against the security advance deposited with the department at the time of execution of the agreement in question along with the compensation for the costs incurred upon the petitioner for the on-site machineries and labors deployed there till date in absence of any termination/order of rescission.

IV. The petitioner further prays for appropriate orders/directions commanding upon the respondents to not only recall all the punitive actions taken by them against the petitioner but to also compensate it by way of contractor’s profit

And/or

For the issuance of any other appropriate writ(s)/order(s)/direction(s) for doing conscionable justice to the petitioner.

3. The petitioner-Firm was awarded the construction work of a Weir in Bansloi River for Littipura Multivillages Water Supply Scheme in the district of Pakur. On its furnishing a Performance Bank Guarantee for Rs. 17,35,000/-, the Letter of Acceptance was issued on 25^th January 2020. Thereafter, the Executive Engineer executed an agreement with the petitioner-Firm on 25^th January 2020 vide Agreement No. SBD-IFB-07/ 19-20. The petitioner-Firm has pleaded that it had started executing the work under contract but on account of the nationwide lockdown in the wake of COVID-19 pandemic further progress of the work was halted. The petitioner-Firm also indicated that one of its partners was severely impacted due to COVID-19. In paragraph no. 21 of the writ petition, the petitioner- Firm pleaded that by 4^th August 2021 it had completed more than 42.50% work under contract and the same was certified by the Executive Engineer through letter dated 4^th August 2021.

4. Ms. Aparajita Bhardwaj, the learned counsel for the petitioner- Firm submits that the communication dated 15^th February 2021 is arbitrary and patently illegal inasmuch as the said communication was issued in breach of natural justice and, that too, on assumption of wrong facts. According to Ms. Bhardwaj, it was incumbent upon the Employer to give a notice to the Contractor to start the work under contract but no such notice was given