NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR WP No. 838 of 2003 Sanjay Enterprises. Through Proprietor Shui Sanjay Kasal, aged about 38 years, 5/o Shri K Kasal, R/o Wara Sioni, Balaghat District- Balaghat (M.P.).

---Petitioner versus

1. Bhilai Steel Plant. Through Managing Director, Ispat Bhawan, Bhilai, Distt. Durg (C.G)

2. Deputy General Manager, Raw Materials Department, Bhilai Steel Plant, Ispat Bhawam, Bhilai, District- Durg (C.G.)

3. Manager (Purchase), Bhilai Steel Plant, Ispat Bhawan, Bhilai, District Durg (CG)

4. General Manager (Quality) Bhilai Steel Plant, Ispat Bhawan, Bhilm, District Dung (CG)

---Respondents WP No. 3765 of 2003 Kasal Tiles. Through Partner Shri Sanjay Kasal, Aged about 38 years, 5/o Shri D.K. Kasal, R/o Warn Sioni, Balaghat, District: Balaghat (M.P.)

--- Petitioner versus

1. Bhilai Steel Plant. Through Managing Director, Ispat Bhawan, Bhilai, Distt. Durg (C.G.)

2. Deputy General Manager, Raw Materials Department, Bhilai Steel Plant, Ispat Bhavan, Bhilai, Distt. Durg (C.G.)

3. Manager (Purchase), Bhilai Steel Plant, Ispat Bhavan, Bhilai, Distt. Durg (C.G.)

... Respondents (Cause title taken from Case Information System)

For Petitioners : Mr. Ashish Shrivastava, Senior Advocate along with Mr. Rahul Ambast, Advocate For Respondents : Mr. Vikram Sharma, Advocate (in WP No. 838 of 2003) and Mr. Pranjal Agrawal, Advocate (in WP 3765 of 2003)

Hon'ble Shr i Ramesh Sinha, Chief Justice Hon'ble Shri R avindra Kumar Agrawal , Judge Judgment on Board Per Ramesh Sinha, Chief Justice

02/02/2026

1.

Since both the writ petitions arise out of similar and connected factual matrix, involve common questions of law relating to withholding of payment and enforcement of contractual clauses by the respondent– Bhilai Steel Plant, and the parties are substantially the same, they were heard together and are being decided by this common order. With the consent of learned counsel appearing for the parties, the matters have been heard finally and decided by a common order.

2.

The WP No. 838 of 2003 has been filed by the petitioner, Sanjay Enterprises, through its proprietor Shri Sanjay Kasal, calling in question the action of the respondents–Bhilai Steel Plant and its officers, whereby payment for the raw material supplied by the petitioner, namely manganese ore, has been withheld on the allegation that the material supplied was sub-standard, despite the fact that the same was admittedly received and consumed by the respondents. The petitioner has, inter alia, sought issuance of an appropriate writ, order or direction, including a writ of mandamus for release of the withheld amount of Rs. 10,77,707/- and Rs. 12,46,385/-, a writ of certiorari for quashing Clause 8.0 of the acceptance of tender dated 14.06.2002 (Annexure P/6) as being arbitrary and violative of Article 14 of the Constitution of India, and for quashing the imposition of late delivery penalty amounting to Rs. 78,710/-. The petitioner further alleges that the respondents have acted in a wholly arbitrary, unreasonable and discriminatory manner, contrary to the contractual provisions relating to sampling and umpire analysis, and in violation of Articles 14, 19(1)(g) and 300-A of the Constitution of India.

3.

The WP No. 3765 of 2003 has been filed by the petitioner, a partnership firm engaged in the business of supply of dolomite chips, calling in question the legality and validity of the action of the respondent–Bhilai Steel Plant in imposing Risk Purchase Penalty to the tune of Rs. 2,19,035/- and in withholding payment of Rs. 1,60,703/- towards the price of raw material allegedly rejected but admittedly consumed by the respondents, as also seeking quashment of Clause 9.1 of the contract and the impugned orders contained in Annexures P/15 and P/17, on the ground that the respondents have acted arbitrarily, unilaterally altered the terms of the contract, and thereby violated Articles 14 and 300-A of the Constitution of India.

4.

The petitioner in WP No. 838 of 2003 has filed the petition