IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 10-09-2025 CORAM THE HONOURABLE MR JUSTICE M.DHANDAPANI & WMP NO. 38265 OF 2025 B.S. Engineers and Contractors, No. 8-4-1 20/10 Nani Mohamed Apartments, Samskhan Pallivasal Street, Tirupathur, 630211, Sivagangai District, Rep By Partner V Sevuga Raja.

Petitioner(s)

Vs

1. The State of Tamil Nadu Rep by Secretary to Government, Highways Department, Fort St George, Chennai 600 009.

2.The Chief Engineer Highways Projects/Convener, High Level Disputes Resolution Committee, Highway Department, Chennai 600 25.

3.The Superintending Engineer(H) Project Circle, Chennai 600 016.

Respondent(s)

PRAYER; This writ petition has been filed under Article 226 of Constitution of India, to issue a writ of Mandamus, directing the respondent to refer the dispute to Arbitration as per G. O Ms no. 17 Highways and Minor Ports (HN.2) Department, dated 06.03.2023 within stipulated time fixed by this Honourable Court.

For Petitioners: Mr.D.Balaraman For Respondents: Mr.P.Kumaresan, AAG Assisted by Mrs.S.Anitha, SGP

ORDER

The writ petition has been filed seeking a direction to the respondent to refer the dispute to Arbitration as per G. O Ms no. 17 highways and minor Ports (HN.2) Department dated 06.03.2023.

2. It is the case of the petitioner that the petitioner has entered into an agreement with the Highways Department on 28.09.2018 for construction of High Level Bridge across Thondiyar River, Alagramam, Thenpudur Road. The petitioner, by its letter dated 26.11.2018, informed the Divisional Engineer about mobilization of resources and requested to solve land acquisition issue and to hand over possession of site. Due to delay in Land Acquisition, the Superintending Engineer on 17.03.2020 granted extension of time for 6 months. On 03.03.2022, the Divisional Engineer issued show cause notice stating slow progress of works. The petitioner submitted a detailed reply on 18.03.2022 pointing out the delay attributed to the Department. However, the Superintending Engineer, on 09.05.2022 passed order on termination of contract without considering the fact for the delay explained by the petitioner. Thereafter, the petitioner made a representation to the Secretary to Government with regard to the termination. On 02.02.2023, the Deputy Secretary to Government instructed the Chief Engineer to send report in this regard. Due to termination, the petitioner was prevented from participating in tenders. Hence, the petitioner filed writ petition in W.P.no.5726 of 2024. During pendency of the writ petition, the Superintending Engineer, vide its letter dated 10.02.2025, requested the petitioner to withdraw the writ petition so as to consider the withdrawal of termination order. When the matter came up for hearing before this Court, the petitioner has brought to the notice of the said letter of the Superintending Engineer dated 10.02.2025 and requested to pass appropriate orders. This Court vide order dated 26.03.2025, recording the said letter issued by the respondent and permitted to withdraw the writ petition. Thereafter, the petitioner communicated the copy of the above order to the Superintending Engineer on 27.03.2025 explaining the reasons for the delay and requesting to cancel the termination and issue appropriate orders to continue the works with new rates or price adjustment from 2018 and provide clear possession of site, designs. The Divisional Engineer on 08.07.2025, without considering the same, stating that the petitioner have not proceed the works. Hence, the petitioner has approached this Court.

3. The learned counsel for the petitioner submitted that since the disputes in the Highways Department getting delayed resulting in various other issues, the Director General, Highways Department, proposed to create a mediation mechanism for early settlement/resolution disputes. Based on that, the Government created and constituted four members, a High Level Dispute Resolution Committee (HLDRC) in G.O.Ms.No.17 Highways & Minor Po