IN THE HIGH COURT OF MEGHALAYA
Dinesh Maheshwari, J.
Rcm Infrastructure Ltd. - Appellant
Vs.
Union of India - Respondent
Writ Petition No. 39 of 2017
Decided On : 29-03-2017
Delay in Execution of Work - Arbitration Clause - Constitution of India, Article 14, 19(1)(g) and 21 - Whirlpool Corporation v. Registrar of Trade Marks, Mumbai - Harbanslal Sahnia and Another v. Indian Oil Corpn. Ltd. - Union of India and others v. Tantia Construction Private Limited - Ram Barai Singh and Company v. State of Bihar and others - Joshi Technologies International INC. v. Union of India and others
Fact of the Case:
The petitioner company sought relief against the respondents for not granting extension of time for completion of work, not releasing pending bills, and not considering its representations. The petitioner alleged that the delay was caused by factors beyond its control, such as delayed handover of work sites, tough climatic conditions, and lack of infrastructure and skilled labor. The petitioner prayed for a writ in the nature of Mandamus to prevent cancellation of the contract and to grant a reasonable extension of time for completion of the work.
Finding of the Court:
The Court found that the matter directly related to the execution of a contract work and involved questions of fact that could not be determined in the writ jurisdiction. The Court also noted the existence of an arbitration clause in the agreement between the parties for resolution of disputes. The Court declined to entertain the writ petition and dismissed it, leaving open the option for the petitioner to pursue appropriate proceedings in accordance with the law.
Issues: The issues involved the delay in execution of work, the petitioner's request for extension of time, and the applicability of the arbitration clause in the agreement.
Ratio Decidendi: The Court held that the matter directly related to the execution of a contract work and involved questions of fact that could not be determined in the writ jurisdiction. The Court also noted the existence of an arbitration clause in the agreement between the parties for resolution of disputes. The Court declined to entertain the writ petition and dismissed it, leaving open the option for the petitioner to pursue appropriate proceedings in accordance with the law.
Final Decision: The Court declined to entertain the writ petition and dismissed it, leaving open the option for the petitioner to pursue appropriate proceedings in accordance with the law.
JUDGMENT :
Dinesh Maheshwari, J.
The petitioner company, having been awarded a contract by the respondents for 34 construction works titled "Proven of Otm Accn Phase II at Rupa" in the state of Arunachal Pradesh at a sum of Rs. 10,98,58,900/- under the acceptance letter dated 12.06.2013, has filed this writ petition stating grievance against the acts and omissions on the part of the respondents in not according extension of time for completion of work, in not releasing the pending bills, and in not considering its representations.
2. The petitioner has averred that though the aforesaid contract was awarded under the acceptance letter dated 12.06.2013 but the sites were handed over much later and the site plans were approved even later. It is averred that the petitioner started the construction work in the remote site at Rupa, which is surrounded by hilly terrain with no infrastructure and road connectivity, which made the work "cumbersome and time consuming". It is further averred that the climatic condition of the location was also quite tough and difficult and there were reduced working hours; and all these factors led to difficulties and delay in execution of the work. With these nature averments, the petitioner has alleged that the delay has been caused for the reasons beyond its control but the authorities concerned, instead of granting extension, were threatening to cancel the contract and were not even making the payment of the pending running account bills. The summation of its case by the petitioner is as under:-
Harbanslal Sahnia and Another v. Indian Oil Corpn. Ltd. and others
Joshi Technologies International INC. v. Union of India and others
Ram Barai Singh and Company v. State of Bihar and others
Sakiri Vasu v. State of Uttar Pradesh and others
Union of India and others v. Tantia Construction Private Limited
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