Advocates:
['PDB BARUAH', '', 'S ROY', 'S SEN', 'B GHOSH', 'K PAUL CGC', '', 'K CH GAUTAM', 'WG MOMIN', 'R MONGRENGH', 'N MOZIKA']

1

Serial No.07

Regular List

HIGH COURT OF MEGHALAYA

AT SHILLONG

WP (C) No.143/2017

Date of Order: 08.08.2018

M/s Sarin’s Green House, Vs. Union of India & ors

Nongrim Hills, Shillong

Coram:

Hon’ble Mr. Justice Mohammad Yaqoob Mir, Chief Justice

Appearance:

For the Petitioner/Appellant(s) : Mrs. PDB Baruah, Adv

For the Respondent(s) Mr. N Mozika, Adv for R1-3

Mr. K Ch. Gautam, Adv R4

i)

Whether approved for reporting in

Yes

Law journals etc.:

ii)

Whether approved for publication

in press:

No

ORAL

1.

Respondent No.4-Engineering Projects (India) Limited an agency

for respondents No.2 and 3 has issued two work orders in favour of the

petitioner:

(a) Construction of 08 No’s of Single Men Barrack in 02 Blocks

of (G+III), 12 No’s. of Single JCO’s Accommodation and 04

No’s. Single Officer’s Accommodation including infrastructural

development works for Assam Rifles at Khonsa, Arunachal

Pradesh

dated

02.07.2009.

A

Letter

of

Intent

No.ASR/KHN/628/006 dated 17.06.2009 was issued.

(b) Construction of 01 No. Officer’s Mess, 01 No. Administrative

Block and 01 No. JCO’ Mess including infrastructural

development works for Assam Rifles at Khonsa, Arunachal

Pradesh

dated

30.11.2009.

A

Letter

of

Intent

No.ASR/KHN/628/006 dated 15.11.2009 was also issued.

2.

The stipulated date for completion of the said two work orders

was 16.02.2011 and 14.07.2011 respectively. Within the stipulated

period, it was not completed as a result whereof, extension of time was

granted up to 30.11.2013 but without any financial effect/escalations as

is clear from the communication dated 20.05.2013 addressed to the

respondent No.4. The respondent No.4 in turn has conveyed the same to

2

the petitioner vide communication dated 31.05.2013. Then, again time

was extended till 15.01.2014. Finally, the work was completed.

3.

The petitioner submitted the escalation bill which in turn was

submitted by the respondent No.4 to the Chief Engineer, Assam Rifles

on 21.09.2016 for an amount of Rs.1,54,87,613/- (Rupees one crore fifty

four lakhs eighty seven thousand and six hundred thirteen only). The

Directorate General Assam Rifles, Shillong vide order dated 25.10.2016

accorded sanction for an amount of Rs.1,00,43,884/- (Rupees one crore

forty three thousand eight hundred and eighty four only) for payment of

escalation bill to the respondent No.4 wherein, it is also mentioned that

the bill from EPIL (respondent No.4) is technically checked and passed

for an amount of Rs.1,00,43,884/- (Rupees one crore forty three

thousand eight hundred and eighty four only). After deduction, balance

amount of Rs.94,36,371/- (Rupees ninety four lakhs thirty six thousand

and three hundred seventy one only) was released in favour of the

respondent No.4. When the amount was not paid to the petitioner,

through her counsel notice was served upon the respondents No.3 and 4,

which has been responded vide communication dated 06.04.2017 where-

under, it was conveyed that extension of time to complete all works as

mentioned in the notice was granted by DGAR (Competent Financial

Authority) on the condition that <no escalation will be paid=. It has also

been mentioned that the contention of the contractor that MOU/contract

agreement stating escalation will be paid for justified extended period

shall have no bearing as the extension letter itself would have served as

a corrigendum to the contractual agreement/MOU and as such post

extension on specific terms of the original contract agreement would

stand merged with the letter granting extension of time with specific

conditions.

4.

Vide communication dated 15.03.2017 addressed to the

respondent No.4 by the respondent No.3, it has been conveyed that the

escalation bill for an amount of Rs.1,00,43,884/- (Rupees one crore forty

three