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1994 Supreme(All) 859

IN THE HIGH COURT OF ALLAHABAD
U. P. SINGH, S. K. PHAUJDAR
LALLOO JI AND SONS - Appellant
Versus
STATE OF U.P - Respondents
C. M. W. P. 33988 Of 1994
Decided On : 12/02/1994

Advocates Appeared:
DINESH DWIVEDI, MUL BEHARI SAXENA

A court does not have jurisdiction to entertain a writ petition for the performance of a contract when there is an arbitration clause in the contract.

Headnote:

CONTRACT - PERFORMANCE - MANDAMUS - ARBITRATION - TENDER - POLICE DEPARTMENT - WORK CONTRACT - DISPUTE RESOLUTION - ARBITRATION CLAUSE - COURT JURISDICTION - CONTRACTUAL RIGHTS - SPECIFIC PERFORMANCE - WRIT PETITION - DISMISSAL.

Fact of the Case:

The petitioner, M/s. Lalloo Ji and Sons, Allahabad, and its partner, Sri Jagdish Kumar Agarwal, filed a writ petition seeking a writ of mandamus for the performance of a contractual right. They sought a direction to the Senior Superintendent of Police, Ardh Kumbh Mela, Allahabad 1995, not to allow respondent No. 6, M/s. Lalloo Ji Shiv Govind Das Brothers, or any other person to undertake work for the Police Department for the Ardh Kumbh Mela. They also sought a direction to the Officer-Incharge Ardh Kumbh Mela, Allahabad 1995, to ensure that the work for the preparation of the township, contract for tentage, barricading, construction of township, pandals, supply of furniture, etc., for the said mela should be taken from the petitioners only.

Finding of the Court:

The court held that the present writ petition was for the performance of a contract and if there was any breach of the terms of the contract for the supply of tender, then in terms of paragraph 14 of the contract, such dispute or difference arising between the respective departmental heads and the contractor as to the rights and liabilities of the parties or as to any matter whatsoever arising under the said contract shall be referred to the arbitrator and his decision shall be final and binding on both the parties. The court further held that in terms of the said clause, such dispute or difference is to be referred to the arbitration and this Court in exercise of its jurisdiction under Articles 226 and 277 of the Constitution shall not entertain such petition and grant such reliefs for performance of a contract.

Issues: 1. Whether the court has jurisdiction to entertain a writ petition for the performance of a contract when there is an arbitration clause in the contract? 2. Whether the petitioner has a right to seek specific performance of the contract through a writ petition?

Ratio Decidendi: 1. The court held that it does not have jurisdiction to entertain a writ petition for the performance of a contract when there is an arbitration clause in the contract. 2. The court held that the petitioner does not have a right to seek specific performance of the contract through a writ petition.

Final Decision: The court dismissed the petition without any order as to costs.

U. P. SINGH, J.

( 1 ) AFTER hearing both the parties this petition is being disposed of the admission stage itself.

( 2 ) THE petitioner M/s. Lalloo Ji and Sons, Allahabad and his one of the partners Sri Jagdish Kumar Agarwal have moved this petition for performance of contractual right by way of issuing a writ of mandamus for performance of the contract. Direction is being sought to be issued to respondent No. 5, the Senior Superintendent of Police, Ardh Kumbh Mela, Allahabad 1995 not to allow respondent No. 6 M/ s. Lalloo Ji Shiv Govind Das Brothers or any other person to undertake to carry on the work for the Police Deparments as required for the said Ardh Kumbh Mela and further that he should take such work only from the petitioners. Further direction is sought to be issued to officer- Incharge Ardh Kumbh Mela, Allahabad 1995, respondent No. 3 to ensure that the work for the preparation of township, contract for tentage, barricading, construction of township, pandals, supply of furnitures etc. for the said mela should be taken from the petitioners only.

( 3 ) THIS year there is going to be a Ardh Kumbh Mela in Allahabad starting from 14/01/1995 and would continue for next two months. Normally, in such Ardh Kumbh Mela crores of People arrive to take Holy dip at sangam on various bathing days starting from 14/01/1995 and ending on mahashivratri. For the preparation, of township, a High Power Advisory committee is constituted, of which, Commissioner of Allahabad is Chairman and the other heads of various departments of the Government are its members. The officer-in-charge of Ardh Kumbh Mela happens to be its Secretary.

( 4 ) FOR the purposes of erecting a proper township and making an overall arrangements a tender committee was constituted and it was entrusted with the job of considering the modality of deciding tenders. A tender notice was published as per Annexure- 1 giving the details of the work required to be taken out. It was issued under the signature of the officer-in-charge of Mela. The administration is to undertake all preparations for making the mela a success from the Point of view of Police Administration, transport, accommodation, health, water supply, electricity and above all to maintain law and order.

( 5 ) THE ultimate object of the administration is to make these great congregations a success and, therefore, no risk could be taken in any of the matter while decision for making arrangements for this great congregations. These arrangements have to be made for crores of people who visit Allahabad and if something goes wrong it would lead to chaotic situation, therefore, the reputation of the contractors account before permitting them to undertake any work or executing any contract. The respondent No. 5, the Senior Superintendent of police, Ardh Kumbh Mela, 1995, being Incharge of the entire law and order and traffic arrangements, has to be very cautious for completion of the work for the Ardh Kumbh Mela.


( 6 ) FROM this point of view the tenders were invited from persons who could fulfil the work of supplying the materials and other essential things as notified in the tender. Number of persons submitted their tenders. The petitioner responded to such tender notice regarding item Nos. 1 to 4 and 10 as per the tender notice. Respondent No. 6 Lalloo Ji Shiv Govind Das Brothers also submitted their tenders but no tender was finalised in all manner. The tender Committee finally decided that the work will be given at the rate of Kumbh Mela, 1989, Plus 5% over it. After finalising the rate nothing more was to be done by the tender committee; as stated by the respondent No. 5 in his counter-affidavit, who was also a member of the tender committee. The tender committee only decided the rates and no offer of any contractor was finalised by the tender committee. It was further decided that notices be issued to the contractors for their acceptance of the rates decided by the tender committee. No offer was finalised in f













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