HIGH COURT OF JAMMU AND KASHMIR AND LADAKH

AT JAMMU

Reserved on 11.04.2022

Pronounced on 22.04.2022

WP(C) No. 1380/2020(O&M)

Saran Aircon Private Ltd

…..Appellant(s)/Petitioner(s)

Through: Mr. Tarun Sharma, Advocate

Vs

Union Territory of J&K and others

.…. Respondent(s)

Through: Mr. Ravinder Gupta, AAG for Nos. 1 to 6

Mr. Eishan Dadhchi, GA for No. 7

Coram: HON’BLE MR. JUSTICE RAJNESH OSWAL, JUDGE

JUDGMENT

1.

This writ petition has been filed by the petitioner-company for release of

payment of contract amount of Rs. 7,45,000/- for completion of work

<supply, installation, testing and commission of three way mixing valves

actuator and Butterfly valves along with allied job with air handling units

installed at Convention Hall Canal Road, Jammu.=

2.

It is stated that the petitioner being the lowest bidder was allotted the

contract for the work mentioned above vide allotment order dated

16.02.2018 and the total value of the contract including all taxes and

duties was Rs. 7,45,000/-. The petitioner executed the contract within the

stipulated time to the satisfaction of the respondents but despite

completion of the work, the amount was not released in favour of the

petitioner. The petitioner also sent a legal notice dated 12.04.2019 upon

respondent Nos. 2, 4 and 7 for release of the aforesaid amount but the

payment was not released. However, respondent No. 4 vide its reply dated

2 WP(C) No. 1380/2020

06.05.2019 stated that the matter was taken with the respondent No. 7

through various correspondence besides meeting him personally on the

subject matter on 24.04.2019 wherein it was assured by the respondent

No. 7 that as and when the funds are received, the payment shall be

released to the petitioner. The respondent No. 4 vide its communication

dated 02.05.2019 requested the respondent No. 7 to release the funds to

the extent of Rs. 7,45,000/-. Thereafter, the petitioner again made a

representation dated 29.07.2020 to the respondents for release of the

amount but nothing was done. The petitioner has placed on record copy of

the allotment order and legal notice and various communications as

referred above.

3.

Reply stands filed by the respondents. In the reply filed by respondent

Nos. 1 to 6, it is stated that vide communications dated 04.08.2018,

16.10.2018, 27.11.2018, 02.05.2019 and 14.05.2019, the respondent No. 7

was requested that the funds amounting to Rs. 7,45,000/- may be released

at the earliest to avoid litigation in the matter. It is also stated that

respondent No. 7 and respondent No. 4 have drawn an agreement for

operation and maintenance of HVAC, DG Sets, Servo Stabilizers and hot

water generator in the Convention Center at Jammu on 09.11.2017 as a

party 1^st and party 2^nd respectively. It is further stated that before the

commencement of agreement, on 16.09.2017 certain shortcomings were

observed at Convention Center and list of damaged/non-functional

components/equipments in Convention Center was prepared and the Chief

Engineer,

Mechanical

Engineering

Department

(MED)

Jammu,

respondent No. 2 herein vide letter dated 01.11.2017 was approached by

3 WP(C) No. 1380/2020

respondent No. 4 to take up the matter with the Director Hospitality and

Protocol Department Jammu i.e. the respondent No. 7 herein so that

required works as per the list be carried out before the execution of

Annual Maintenance Contract(AMC) of electro-mechanical equipments.

It is further stated that respondent No. 2 took up the matter of

shortcomings at the Convention Center with the respondent No. 7 vide

communication dated 08.11.2017 and requested for a j