IN THE HIGH COURT OF ALLAHABAD
Y.K. Srivastava, Manoj Kumar Gupta, JJ.
Kanika Construction - Petitioner
Vs.
State Of U.P. And Others - Respondent
WRIT - C No. - 27869 of 2021
Decided On : 06-01-2022
Constitution of India, 1950 - Article 14 and 226 - Company - Tenders - Seeking a direction for payment of an amount - Petitioner company submitted its offer - It was duly accepted and in pursuance thereof, it provided service of community kitchen at above two places during COVID period - By letter dated Respondent no.4 directed petitioner to close community kitchen w.e.f. - A three member Committee had duly verified quality and quantity of food packets supplied by petitioner in pursuance of the contract - Petitioner has placed on record an order dated issued by A.D.M. Finance & Revenue, in which it is recorded that on basis of recommendation of Committee and approval granted by District Magistrate on amount received from Government shall be disbursed amongst various service providers on pro-rata basis - Whether a writ petition under Article 226 of Constitution of India is maintainable to enforce a contractual obligation against State or its instrumentalities, by a aggrieved party, is no longer res integra.
Finding of the Court :
Court directed concerned respondent therein to file his personal affidavit disclosing time frame within which payment of due amount would be made, respondents made payment and filed an affidavit to said effect - It is pointed out that case of petitioner is on a similar footing inasmuch as approval for making payment was granted in respect of petitioner as also M/s Saubhagya Industries Ltd. (supra) by same order dated issued by A.D.M., Finance and Revenue - Writ of mandamus is issued directing respondents to ensure that amount due and payable to petitioner is released in its favour within a period of four weeks from date of receipt of a true attested copy of instant order by the second respondent.
Result: Writ petition stands allowed
JUDGMENT :
1. Heard Sri Nipun Singh, learned counsel for the petitioner and learned Standing Counsel for the State-respondents.
2. The present petition has been filed seeking a direction to the Respondent no.2 for payment of an amount which is stated to be due and admitted.
3. Pleadings in the petition indicate that in pursuance of certain advertisement inviting tenders for running community kitchen at Baijal Bhawan, Meerut and Olivia Hotel, Meerut, the petitioner company submitted its offer. It was duly accepted and in pursuance thereof, it provided the service of community kitchen at above two places during COVID period. By letter dated 4.6.2020, Respondent no.4 directed the petitioner to close the community kitchen w.e.f. 6.6.2020. A three member Committee had duly verified the quality and quantity of food packets supplied by the petitioner in pursuance of the contract. The petitioner has been paid certain sum under the contract, but the entire amount has not been paid on account of paucity of funds.
4. The petitioner has placed on record an order dated 5.3.2021 issued by A.D.M. Finance & Revenue, Meerut in which it is recorded that on basis of recommendation of the Committee and the approval granted by the District Magistrate, Meerut on 4.3.2021, the amount of Rs. 3,68,81,217/-received from the Government shall be disbursed amongst various service providers on pro-rata basis. The order itself records that the remaining amount would be paid after release of more funds from the Government. A chart which is part of the said order reveals that in respect of the petitioner, the remaining sum is Rs. 37,32,072/-. Since, the amount has not been paid to the petitioner despite repeated reminders, the instant petition has been filed for a mandamus to Respondent no. 2 to pay the remaining amount forthwith.
5. On 26.11.2021, a Coordinate Bench passed the following order:-
In the facts of the case, it would be appropriate to direct the second respondent to examine the petitioner's grievance and file an affidavit clearly disclosing as to how much time would be required to release the dues to the petitioner, by the next date fixed.
Post this matter as fresh, once again, on 15th December, 2021.”
6. On 15.12.2021, the matter was again adjourned to enable the competent authority to examine the petitioner’s grievance and take necessary action.
7. Learned Standing Counsel is in receipt of instructions from the State Respondents in which the same stand has been taken i.e. as soon as the funds are received from the State Government, payment shall be made.
8. The question whether a writ petition under Article 226 of the Constitution of India is maintainable to enforce a contractual obligation against the State or its instrumentalities, by a aggrieved party, is no longer res integra. The law with regard to the maintainability of a writ petition in contractual matters is fairly well settled. It has been consistently held that there is no absolute bar to the maintainability of a writ petition in such matters. The discretionary jurisdiction under Article 226 of the Constitution of India may, however, be refused in case of money claims arising out of purely contractual obligations where there are serious disputed questions of fact with regard to the claims sought to be raised.
9. The legal position with regard to entertain ability of a writ petition in contractual matters where monetary claims are sought t
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Contractual Matter - Payment of catering charges - Swachh Bharat Mission Scheme - There was no dispute on factual position and the State therein had admitted its liability to pay bill amount.
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Reimbursement of amount - Entitlement of - Grant of relief of this nature would virtually amount to a money decree. Petitioner is at liberty to take recourse to remedies available by raising such a c....
Writ petitions for recovery of amounts due under contract are not maintainable when claims are disputed; such matters should be resolved in Civil Court or through Arbitration.
It is clear that when an instrumentality of the State acts contrary to public good and public interest, unfairly, unjustly and unreasonably, in its contractual, constitutional or statutory obligation....
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