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1999 Supreme(Online)(AP) 7

ANDHRA PRADESH HIGH COURT
Sri E. Manohar, J
Mahendar Tiwari v. Govt. of A.P. and Others
W. P. No. 24504 of 1998



Advocates:
For the Appellants/Petitioners: Sri E. Manohar
For the Respondents: Government Pleader for Roads and Buildings

Petitioner cannot invoke writ jurisdiction for contractual disputes without public element; claims must be addressed through appropriate legal channels.

Headnote:(A) Constitutional Law - Article 226 - Writ jurisdiction - The petitioner sought relief under Article 226 for the alleged inaction of the respondents to provide required toll collection facilities, claiming a breach of contract. However, the court asserted that matters relating to contractual disputes do not warrant writ jurisdiction unless a public element is involved. (Paras 6, 10, 16)

(B) Contract Law - Obligations and rights - The petitioner, having accepted the contract and took possession of the toll collection points, could not claim breach after commencing operations. The court noted that any grievance arising from non-performance must be addressed in an appropriate forum rather than through a writ. (Paras 8, 16)

(C) Judicial Review - Limitations in contractual matters - The court highlighted precedents establishing that disputes concerning contractual obligations between private persons and the State are not typically subject to judicial review unless they involve public functions. (Paras 7, 13, 14)

(D) Findings of the court highlighted the absence of public law element in the contractual obligation of providing toll booths and reaffirmed that the petitioner should not invoke writ jurisdiction for settlement of a private contractual issue. (Paras 10, 16) (E)

Result: The petition is dismissed.

Table of Content
1. petitioner seeks enforcement of contract terms for toll collection. (Para 1 , 2 , 3)
2. respondents argue petitioner accepted terms and agreed to conditions. (Para 4 , 5)
3. court reviews applicability of writ jurisdiction in contractual contexts. (Para 6 , 8 , 10)
4. legal references illustrate limits of state obligations in commercial contracts. (Para 9 , 11 , 12 , 13)
5. writ petition dismissed due to lack of public element. (Para 14 , 15 , 16)

1. The writ petition is disposed of finally on merits after hearing the learned counsel for the petitioner and the learned Government Pleader for Roads and Buildings for respondents.

2. The petitioner seeks a direction declaring the inaction of the respondents, in particular respondent No. 2, in not providing Toll Collection Booth and gate with electricity supply at K. M. 1/4 of Anakapalli By - pass at National Highway (for short 'N. H.') No. 5 and adequate protection for collection of the toll fee there. A further direction is sought that the respondents should not insist upon the payment of any quantum of lease amount from 9-8-1998 onwards till respondents construct the said toll gate and comply the other conditions referred above.

3. A notification No. 6957 / EE.III / TA.VI / AEE - 12/97 dated 25-4-1998 was published by respondent No. 2 for calling sealed Tenders for collection of toll amounts. Thus it was a public auction of right to collect the toll. The petitioner was one of the bidders and his Tender for an amount of Rs. 7,61,61,000/- (Rs. seven crores sixty one lakhs and sixty one thousands only) was accepted. The petitioner contends that the toll fee for a period of one year starting from 1-4-1998 to 31-3-1999 was to be collected at two points. One was at Toll Gate at K. M. 371/2 of Vijayawada - Visakhapatnam Section on N. H. 5 and the other one was at KM 1/4 of Anakapalli By - pass on N. H. 5. The period for which this right of toll collection was to be exercised was from 21-7-1998 to 31-3-1999. This was because the auction took place after 1-4-1998. A contract was executed accordingly on 20th of July, 1998. The proportionate bid amount of the petitioner was fixed as Rs. 5,30,26,073/- (Rs. Five crores, thirty lakhs, twenty six thousand seventy three only). This was to be paid in monthly instalments of Rs. 63,46,750/- Rs. Sixty - three lakhs forty six thousand seven hundred and fifty only. However, the first instalment was of Rs. 22,52,073/- (Rs Twenty two lakhs fifty two thousand seventy three only). The contention of petitioner is that under Clause 25 of the lease deed, the respondent were duty bound to construct toll houses, sheds and gates and hand them over to the petitioner for facilitating the collection of the toll tax at the two gates. The Department however provided only one such constructed booth of Toll Gate at K.M. 371/2 of Vijayawada - Visakhapatnam Section and no booth was constructed or gates were set up at K.M. 1/4 of Anakapalli By - pass. The petitioner contends that he was assured by the Executive Engineer of the respondent - department that a permanent toll booth, shed and gate would be constructed at K.M. 1/4 of Anakapalli By - pass within a few days. On that assurance the petitioner took the possession for operating the lease. In spite of such assurance, till filing of the writ petition, no toll booth was constructed at K. M. 1/4 of Anakapalli By - pass. This in - action of the respondents has prevented the petitioner from effective toll collection. It is alleged that 75% of the traffic passes through the point at K.M. 1/4 of Anakapalli By - pass and only 25% at the other toll gate. It is alleged that unsuccessful bidders with the help of local politicians are in some way or the other obstructing the petitioner's right to collect the toll tax. The petitioner is from State of Rajasthan and his success in bidding has caused heart - burn to the local bidders. The local persons do not allow petitioner to collect the toll tax at Anakapalli By - p



































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