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2006 Supreme(All) 927

B.S.CHAUHAN, DILIP GUPTA
SANT GADGE SEVA NIKETAN, U. P. – Appellant
Versus
STATE OF UTTAR PRADESH – Respondent


JUDGMENT

By the Court—This writ petition has been filed for disbursing the amount under a non-statutory contract. The Supreme Court has time and again examined this issue and observed that a writ petition does not lie for recovery of an amount under a contract and even though a Statute may expressly or impliedly confer power on a statutory body to enter into contracts in order to enable it to discharge its functions, but disputes arising out of the terms of such contracts have to be settled by the ordinary principles of law of contract and the fact that one of the parties to the agreement is a statutory or public body, does not affect the principles to be applied. It has also been emphasised that such a contract is not a statutory contract and the disputes relating to interpretation of the terms and conditions of such a contract cannot be agitated in a writ petition under Article 226 of the Constitution. Thus, whether any amount is due, or not, and refusal to pay, it is justified, or not, are not matters which can be agitated and decided in a writ petition.

2. In this connection reference may be made to the decision of the Supreme Court in Kerala State Electricity Board & Anr. v. Kur















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