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2023 Supreme(Online)(Gau) 7428
TRIPURA HIGH COURT
Mr. Somik Deb, ACJ
Jaypee Projects Limited v. State of Tripura
Writ Petition | Article 226
Important Points
Subject
Contract Law - Writ Jurisdiction
Act Referred
Headnote
(B) Contractual Obligations - The parties agreed on a final completion certificate, maintenance period, and payment escalations in case of price hikes - Liability to pay outstanding dues occurs within a reasonable time following completion of works - Principles of prompt payment discussed, establishing that prolonged deferment of payment is unwarranted. (Paras 7, 12)
Facts of the case:
The petitioner executed a construction project and subsequently sought payment of outstanding dues, notwithstanding the respondents' claims of non-approval of funds.
Findings of Court:
Writ petition dismissed due to the existence of alternative dispute mechanisms and the presence of disputed facts not for judicial resolution.
Issues: The primary issue considered was whether the writ petition was maintainable given existing disputes over civil rights and obligations.
Ratio Decidendi: The court ruled that the existence of alternative dispute redressal mechanisms renders a writ petition non-maintainable where civil rights are in dispute.
Result: Petition dismissed.
For the Appellants/Petitioners: Mr. Somik Deb, Mr. Abir Baran
For the Respondents: Mr. S. S. Dey, Ms. A. Chakraborty
| Table of Content |
|---|
| 1. petitioner seeks outstanding payment for construction work. (Para 2 , 3 , 4 , 5 , 6) |
| 2. court discusses principles of prompt payment and contractual obligations. (Para 12 , 14 , 18) |
| 3. writ petition deemed non-maintainable due to alternative dispute mechanisms. (Para 15 , 16 , 24) |
1. Heard Mr. Somik Deb, learned senior counsel assisted by Mr. Abir Baran, learned counsel appearing for the petitioner. Also heard Mr. S. S. Dey, learned Advocate General assisted by Ms. A. Chakraborty, learned counsel appearing for the respondents.
2. This present petition has been filed under Article - 226 of the Constitution of India for enforcement of the Constitutional rights of the petitioner granted under Articles - 14, 19, 21 and 300A of the also for transmitting the records, relevant to the subject matter of this writ petition for rendering substantive and conscionable justice to the petitioner. Further, to direct the respondents to forthwith pay off the outstanding dues to the petitioner, amounting to Rs.27,46,96,122.55/- along with interest @18% from the date it fell due.
3. The brief fact which falls for considering in this writ petition is that for execution of the civil work, namely "Construction of the Composite Tripura Legislative Assembly Building and the new Secretariat of New Capital Complex, Agartala, Tripura" the Executive Engineer, Capital Complex Division PWD (R and B) issued a tender notice, pursuant whereto, the petitioner was selected for execution of the said work and accordingly, the work order was issued in favour of the petitioner.
4. After the successful completion of the work, the project was duly handed over to the respondents and accordingly, by letters, the Executive Engineer, Capital Complex Division, PWD (R and B) issued completion certificates for original work and extra work respectively, in favour of the petitioner and no dispute arose as to the said work, either during or after execution of the same. Thereafter, the Executive Engineer, Capital Complex Division PWD (R and B) issued a letter to the Assistant Engineer, Capital Complex Sub-Division - I PWD (R and B) as well forwarding a copy of the petitioner, thereby stating that the petitioner claimed an Escalation Bill, under up to 19 RA Bill, the amount of Escalation Bill has been scrutinized / modified by the respondents to Rs.1,85,80,985.52/-.
5. Thereafter, the Director of the issued a letter to the Executive Engineer, PWD (R and B), Government of Tripura, thereby requesting to release the balance Final Bill, including the Escalation Bill, amounting to Rs.1,76,40,892.1/-, within a period of one month, to avoid the 18% interest, to be counted with effect from 31.07.2012. Thereafter, the Director of the petitioner issue a reminder letter, to the Executive Engineer, PWD (R and B), Government of Tripura, thereby requesting to release the balance final bill, including the escalation bill, amounting to Rs.1,76,40,892.1/- along with 18% interest claimed on to the above amount.
6. Thereafter, the Director of the petitioner further issued another reminder letter to the Executive Engineer, Capital Complex Division, PWD (R and B) Government of Tripura, thereby requesting to release the balance final bill, including the escalation bill, amounting to Rs.1,76,40,892.1/- along with 18% interest claimed on to the above amount. Furthermore, the Director of the petitioner issued another reminder letter to the Executive Engineer, Capital Complex Division, PWD (R and B), Government of Tripura, thereby requesting to release the balance final bill, including the escalation bill, amounting to Rs.1,76,40,892.1/- along with 18% interest claimed on to the above amount.
7. Mr. Somik Deb, learned senior counsel assisted by Mr. Abir Baran, learned counsel appearing for the petitioner has submitted that Clause - 31.1 of the agreement inter alia provided for the final completion certificate which provided that on successful completion of the entire works covered by the contra
