As per case facts, the petitioner, a construction company, completed a bridge construction contract awarded in 2008, by 2013. Despite completion, the final bill and other dues, including claims for ...
1
Serial No. 01
Regular List
HIGH COURT OF MEGHALAYA
AT SHILLONG
WP(C) No. 444 of 2022
Reserved Date: 17.06.2026
Pronouncement Date: 14.09.2026
Shri. Upendra Nath Saha,
S/o (L) Shri. Kali Prasanna Saha,
R/o. Fancy Valley, P.O. & P.S. Tura,
West Garo Hills, Meghalaya-794001.
…….. Petitioner
- Vs-
1. State of Meghalaya through its Chief Secretary,
Government Meghalaya.
2. Chief Engineer, P.W.D. (Roads),
Public Works Department (Roads),
Government of Meghalaya.
3. Executive Engineer, P.W.D. (Roads),
Baghmara NH Division, Baghmara,
South Garo Hills, Meghalaya
4. Chief Engineer, National Highway (NH),
Public Works Department (Roads),
Meghalaya, Shillong.
[Impleaded as per Court's
order dated 09.05.2023 passed in
M.C. [WP(C)] No. 34 of 2023].
5. The Regional Officer,
Ministry of Roads,
Transport & Highways,
Government of India, Guwahati, Assam
[Impleaded as per Court's
order dated 06.07.2023 passed in
M.C. [WP(C)] No. 143 of 2023]
…….. Respondents
2026:MLHC:1033
2
Coram:
Hon’ble Mr. Justice W. Diengdoh, Judge.
Appearance:
For the Petitioner/Appellant(s) : Mr. D. Sahu, Adv.
Mr. P.R. Paske, Adv.
For the Respondent(s) : Mr. N.D. Chullai, AAG with
Ms. R. Colney, GA. for R 1-4.
Dr. N. Mozika, DSGI with
Ms. K. Gurung, Adv. for R 5.
i) Whether approved for reporting in Yes/No
Law journals etc.:
ii) Whether approved for publication
in press: Yes/No
JUDGMENT AND ORDER
1. Pleadings found in this petition reveals that the petitioner is a private
limited construction company, registered under the Indian Companies Act. 1956.
It is also registered as a Class-I Government Contractor of a number of
government departments, e.g., PWD, PHED, MePDCL.
2. In the year 2008, a tender was floated for construction of RCC Bridge
No. 166/5 (Balance Work) including Bridge No. 166/4 (within approach) on the
NH-62 in South Garo Hills District. The petitioner having participated in the said
bidding process, he was accordingly awarded the contract vide Final Work Order
No. PW/TB/BR/46/2005/Pt/10 dated 24.07.2008, the tender value of the work
being ₹ 4,87,30,500/- (Rupees Four Crore, Eighty-Seven Lakh, Thirty Thousand
Five Hundred) only. Then, after completing the work in the year 2013, the 2026:MLHC:1033
3
petitioner raised the total bill of ₹ 4,08,30,668/- (Rupees Four Crore, Eight Lakh,
Thirty Thousand, Six Hundred and Sixty-Eight) only.
3. The petitioner was assured by the concerned department that the final
bill will be cleared soon, he waited for the same for a few months and thereafter,
he visited the office of the PWD, Shillong, making verbal request for the said
bills to be paid. However, since nothing was forthcoming from the part of the
department, the petitioner then sends written requests to the Executive Engineer,
PWD, (Roads), Baghmara NH Division through several letters dated 25.02.2014
and others.
4. The department having failed to fulfil to settle the said outstanding
bills amounting to ₹ 4,08,30,668/-, the petitioner was compelled to cause
issuance of a Legal Notice dated 23.04.2021, calling upon the department to pay
the said bills together with interest @ 18% p.a. within 15 days from the date of
receipt of the said Legal Notice.
5. Inspite of a number of letters sent to the department and the Legal
Notice dated 23.04.2021 issued, the said bills have not been cleared till the time
of filing of this petition, such action demonstrating lack of interest, the same
being arbitrary, illegal and tantamount to violation of Article 14 of the
Constitution and other legal rights of the petitioner which permits the approach
before this Court with this instant petition under Article 226 of the Constitution. 2026:MLHC:1033
4
6. The submission of the learned counsel for the petitioner Mr. D. Sahu,
apart from reiterating the above facts, have also mentioned the revised cost
estimate of the project of ₹ 7,54,53,000/- (Rupees Seven Crore, Fifty-Four Lakh,
Fifty-Three Thousand) only, issued by the Chief Engineer (NH) PWD (Roads)
vide letter No. PW/TB/BR/46/2005/18 dated 18.05.2011 said to be based on the
guidelines issued by the Ministry of Road Transport and Highways dated
04.11.2011. Another, modified cost estimate for sanction of ₹ 7,96,84,106/-
(Rupees Seven Crore, Ninety-Six Lakh, Eighty-Four Thousand One Hundred
Six) only was issued by the Chief Engineer (NH) PWD (Roads) vide letter No.
PW/TB/BR/46/2005/24 dated 18.03.2017.
7. The learned counsel has also submitted that the petitioner has
executed the whole work Contract in the year 2013 within the time span as
extended by the respondent from time to time and the project was handed over
to the respondent No. 3 in June, 2013. However, no Completion Certificate has
been issued pending sanction of the Revised Cost Estimate and preparation of
the Final Bill by the respondents.
8. The learned counsel has further submitted that in the meantime, the
concerned respondent has issued six RA (Running) bills, the total value of which
comes to ₹ 4,38,47,396/- (Rupees Four Crore, Thirty Eight Lakh, Forty Seven
Thousand Three Hundred Ninety Six) only, the payment released however, was
₹ 3,96,99,089/- (Rupees Three Crore, Ninety Six Lakh, Ninety Nine Thousand 2026:MLHC:1033
5
and Eight Nine) only, since ₹ 34,62,097/- (Rupees Thirty Four Lakh, Sixty Two
Thousand and Ninety Seven) only has been deducted as Agency Charges.
9. The learned counsel has also submitted that the petitioner is entitled
to receive the following outstanding dues from the respondent as under:
(a) Differential Amount withhold Rs. 74,51,556/-
on Final Bill- CC-VI
Cost of escalation Bill up to Dec, 2011 Rs. 71,25,845/-
(Upto RA Bill-VI)
(b) Cost of escalation Bill up to June, 2013 Rs. 67,70,887/-
(c) 8% Security deposit deducted from/ Rs. 35,07,790/-
running Bill
(d) 2% Earnest Money retained by the Rs. 9,74,610/-
respondents
(e) Final Bill (Yet to be prepared by * Rs. 2,32,64,277/-
the respondents)
(considering revised estimate upto date)
*[Rs. 7,54,53,000 - Rs. 5,21,88,723]
Total amount due to be received from the respondents Rs. 4,90,94,964/-
10. The learned counsel has also submitted that, by not releasing the
petitioner’s legitimate dues, the same is violative of Article 14 of the
Constitution, arbitrariness being apparent in such act of unreasonableness. As
such, this Court exercising jurisdiction under Article 226 of the Constitution can
direct the respondents to release the outstanding dues of the petitioner. The case
of M/s Gvpr Engineers Ltd. v. The Managing Director, Karnataka Neevari 2026:MLHC:1033
6
Nigam Ltd. [WP(C) No. 8182 of 2022], reported in 2024 Supreme (Kar) 210
has been referred to in support of this contention.
11. The learned counsel for the petitioner has also submitted that for the
delay in payment of the dues of the petitioner, therefore, interest on such delayed
payment till final release of the said dues has to be made to the petitioner. The
case of State of Kerala v. P. Edward John, 2015 (Supreme Online (Ker),
46582, para 17 & 22 has been cited in this regard.
12. On the issue of limitation, the learned counsel has submitted that the
provisions of the Limitation Act are not applicable to reliefs sought for on an
application under Article 226. Though it is admitted that it was incumbent upon
the petitioner to approach the court within a reasonable time period, however,
the same depends on the facts and circumstances of each case. The case of Shri
Vallabh Glass Works Ltd. & Anr v. Union of India & Ors, (1984) 3 SCC
362, para 9 as well as the case of Sachindra Nath Sen Gupta v. General
Manager, NEF Railway, 1973 AIR (Gua) 108, para 4 was referred to, to
sustain this contention.
13. Finally, the learned counsel has argued that in a writ petition
involving disputed question of facts or for a monetary claim, the same is
maintainable in exercise of the discretionary powers of the court. The case of
ABL International Ltd. v. Export Credit Guarantee Corporation of India
Ltd., (2004) 3 SCC 553 has been put into service in this connection. 2026:MLHC:1033
7
14. Mr. N.D. Chullai, learned AAG assisted by Ms. R. Colney, learned
GA appearing for the State respondents No. 1-4, in his response has submitted
that admittedly, the work for reconstruction of Bridge No 165/5 (Balance Work)
including Bridge No. 166/4 (within approach) is a project sanctioned by the
Ministry of Road Transport and Highways (MoRTH), Government of India.
15. The first objection raised by the learned AAG is on the issue of
maintainability of this petition. It is the contention of the learned AAG that
through this writ, the petitioner seeks enforcement of contractual dues arising
from works contracts. The dispute involves interpretation of contractual clauses,
disputed question of facts relating to quantities executed, variation beyond BOQ
quantities, entitlement to escalation claims and delay in execution, such facts
required to be proved through evidence and examination of contractual records,
measurement books, bills and approval etc., the same which could not be proved
or decided in a proceeding under Article 226 of the Constitution.
16. The next contention of the learned AAG is with regard to the fact
that though, in the contract agreement, there is an arbitration clause that is,
Clause 25.3 of the Contract which provides for settlement of disputed contractual
claims through the medium of arbitration, this alternative remedy being
available, the petitioner is therefore precluded to seek redressal of his alleged
grievance by way of a writ petition under Article 226 of the Constitution.
17. It is also reiterated that as far as the completion of the contract work 2026:MLHC:1033
8
is concerned, the period stipulated was 24 months from the date of the award,
being 24.07.2008. Therefore, the completion date was 24.07.2010, however, the
petitioner could complete the work only on 30.06.2013, a delay of more than 3
years being incurred. The present writ petition was filed only in the year 2022,
almost 9 years from the date of completion of the work for which no explanation
was ever furnished by the petitioner, as such, for the inordinate delay, the learned
AAG submits that this petition is liable to be dismissed at the outset.
18. In support of the case of the State respondent, the learned AAG has
referred to the following authorities: -
i) Union of India & Ors. v. Puna Hinda, (2021) 10 SCC 690,
para 18 and 24;
ii) Joshi Technologies International INC. v. Union of India
and Ors. (2015) 7 SCC 728, para 57, 59, 69.2;
iii) State of Maharashtra v. Digambar, (1995) 4 SCC 683,
para 14;
iv) Judgment and order dated 26.04.2024 in WP(C) No. 279
of 2021, Priyanchi R. Marak v. State of Meghalaya and
Ors, para 37, 38, 39 and 40; and
v) Judgement and Order dated 14.06.2024 in W.A. No. 20 of
2024, Priyanchi R. Marak v. State of Meghalaya and Ors. 2026:MLHC:1033
9
19. Dr. N. Mozika, learned DSGI assisted by Ms. K. Gurung, learned
counsel appearing for the respondent No. 5/MoRTH in his argument, has raised
similar contentions as was done by the learned AAG for the State respondent as
far as the issue of disputed question of facts is concerned, and also on the point
of an alternate remedy being available to the petitioner. That the petitioner has
suppressed the fact that there was an arbitration clause in the Contract agreement,
vis-à-vis, reference of dispute arising out of the contract to arbitration was also
another contention brought forth by the learned DSGI while presenting his
argument in favour of the respondent No. 5. Finally, that there was delay and
laches on the part of the petitioner in preferring this petition before this Court,
therefore, the learned DSGI submits that the same ought to be dismissed on this
ground too.
20. On the factual aspect of the matter, the learned DSGI has submitted
that admittedly, the work for reconstruction of the RCC Bridge No.
166/5(Balance work) including Bridge No. 166/4 (within approach) was secured
by the petitioner through the bidding process for the Tender Value of ₹
4,87,30,500/- (Rupees Four Crore, Eighty-Seven Lakh, Thirty Thousand Five
Hundred) with a timeline of 24 months for completion. The work was however
completed only on 30.06.2013, after a delay of more than 3 years.
21. Again, the learned DSGI has further submitted that as per the 2026:MLHC:1033
10
provisions of the Contract Agreement, payment for an amount of ₹ 4,47,37,169/-
(Rupees Four Crore, Forty-seven Lakh, Thirty-Seven Thousand One Hundred
Sixty-Nine) only was made to the petitioner through various Running Account
Bills. An amount of ₹ 74,51,556/- (Rupees Seventy-Four Lakh, Fifty-One
Thousand Five Hundred Fifty-Six) only was withheld from the 6
th
Running
Account Bill after restricting the total quantity as per the Contract Agreement.
22. On the submission of the bills by the petitioner to the respondent No.
3 for price escalation amounting to ₹ 71,25,845/- (Rupees Seventy One Lakh,
Twenty Five Thousand Eight Hundred Forty Five) and ₹ 67,70,887/- (Rupees
Sixty Seven Lakh, Seventy Thousand Eight Hundred Eighty Seven) only, the
learned DSGI has reiterated that as per the sanction letter dated 30.03.2007, there
is no provision permitting price escalation, as such, the petitioner has no
enforceable right to claim the same for the said amount raised in this regard.
23. The learned DSGI has maintained that the respondent MoRTH has
sanctioned the project based on the DPR submitted by the implementing
agencies. Thereafter, work is put to tender depending upon the civil construction
cost of the project. In this regard, it is the responsibility of the respondents No.
2 and 3 to take advance action to ascertain the requirement of items of work to
be executed for the project in order to obtain prior approval from the MoRTH.
However, in this instant case, the bill for price escalation was not received by
the MoRTH, which should have been done so by the respondent No. 3 who then 2026:MLHC:1033
11
has to submit the bill to the respondent No. 4 after which the amount can be
sanction provided it is within the tendered Bills of Quantities (BOQ). In the
instant case, admittedly the quantity exceeded the BOQ for which an amount of
₹74,51,556/- (Seventy-Four Lakh, Fifty-One Thousand, Five Hundred Fifty-Six)
only was withheld.
24. It is also the submission of the learned DSGI that under the contract,
there is no provision for price escalation, as such, the amounts of ₹ 71,25,845/-
(Rupees Seventy-One Lakh, Twenty-Five Thousand, Eight Hundred Forty-Five)
only and ₹ 67,70,887/- (Rupees Sixty-Seven Lakh, Seventy Thousand, Eight
Hundred Eighty-Seven) only claimed by the petitioner on account of price
escalation cannot be sustained.
25. The learned DSGI went on to submit that the petitioner is now
claiming an amount of ₹ 4,90,94,964/- (Rupees Four Crore, Ninety Lakh,
Ninety-Four Thousand, Nine Hundred Sixty-Four) only against the total contract
value of only ₹ 4,87,30,500/- (Rupees Four Crore, Eighty-Seven Lakh, Thirty
Thousand Five Hundred) only, wherein, an amount of ₹ 4,47,37,169/- (Rupees
Four Crore, Forty-Seven Lakh, Thirty-Seven Thousand, One Hundred Sixty-
Nine) only has already been paid to the petitioner. Therefore, in view of such
disputed factual situation, this petition is liable to be dismissed on this ground
alone, since the petitioner has an alternate redressal forum in the form of a civil
court of competent jurisdiction. 2026:MLHC:1033
12
26. This Court, on consideration of the submission made by the learned
counsel for the parties herein, has also looked into the contents of the petitions
as well as the counter-affidavit filed by the respondents No. 3 and 5 respectively,
as also the rejoinder to the said counter-affidavit.
27. What is apparent is that there was a contract agreement executed
between the petitioner and the relevant respondent authorities for reconstruction
of RCC Bridge No. 166/5(Balance work) including Bridge No. 166/4(within
approach), the value of the contract being ₹ 4,87,30,500/- (Rupees Four Crore,
Eighty-Seven Lakh, Thirty Thousand Five Hundred) only. The petitioner has
however stated at para 4 of this petition that the total bill amount raised and
submitted to the respondent is ₹ 4,08,30,688/- (Rupees Four Crore, Eight Lakh,
Thirty Thousand Six Hundred Eighty-Eight) only which was not disputed by the
respondent department.
28. The petitioner has also made mentioned of several request to the
Executive Engineer (Road) Baghmara NH Division, correspondence of which
dates back to 25.02.2014 to 21.07.2020. The demand made in the prayer in this
petition was for the said ₹4,08,30,688/- (Rupees Four Crore, Eight Lakh, Thirty
Thousand Six Hundred Eighty-Eight) only.
29. As have been noticed hereinabove, the learned counsel for the
petitioner in course of argument, have mentioned an amount of ₹ 4,38,47,396/-
(Rupees Four Crore, Thirty-Eight Lakh, Forty-Seven Thousand Three Hundred 2026:MLHC:1033
13
Ninety-Six) only, being the total amount of six Running Account Bills for which
payment released was only ₹ 3,96,99,089/- (Rupees Three Crore, Ninety-Six
Lakh, Ninety-Nine Thousand and Eighty Nine) only, since ₹ 34,62,097/-
(Rupees Thirty Four Lakh, Sixty Two Thousand and Ninety Seven) only.
30. It is also the argument of the learned counsel that there are also two
numbers of Price Escalation Bills which were submitted by the petitioner on
26.08.2014 amounting to ₹ 71,25,845/- (Rupees Seventy-One Lakh, Twenty-
Five Thousand, Eight Hundred Forty-Five) only and ₹ 67,70,887/- (Rupees
Sixty-Seven Lakh, Seventy Thousand, Eight Hundred Eighty-Seven) only,
which have not yet been released by the respondent authorities.
31. The petitioner has also given a breakup of the amount that is due and
payable to him (reflected at para 9 above), the total of which amounts to ₹
4,90,94,964/- (Rupees Four Crore, Ninety Lakh, Ninety-Four Thousand Nine
Hundred Sixty-Four) only.
32. The State respondent as well as the respondent MoRTH has refuted
such claim and have contended that an amount of ₹ 4,47,37,169/- (Rupees Four
Crore, Forty-Seven Lakh, Thirty-Seven Thousand One Hundred Sixty-Nine)
only have already been paid to the petitioner and that there is no provision or
contractual agreement as far as entitlement to price escalation is concerned.
33. This Court on perusal of the pleadings, particularly the averments 2026:MLHC:1033
14
made in this petition, has noticed that the petitioner has advanced argument
beyond the pleadings and has introduced facts which were not found in the
petition. For example, the issue of price escalation and the entitlement of the
petitioner thereon, amounting to ₹ 71,25,845/- (Rupees Seventy-One Lakh,
Twenty-Five Thousand, Eighty Hundred Forty-Five) only and ₹ 67,70,887/-
(Rupees Sixty-Seven Lakh, Seventy Thousand, Eight Hundred Eighty-Seven)
only respectively have been brought out only in the rejoinder affidavit in
response to the counter affidavit filed by the State respondents. Without any
surrejoinder to the same, this Court could not take such assertion of the petitioner
as a valid submission, since no plea could have been permitted in the rejoinder
without the leave of the Court, considering the fact that the respondents are to be
given an opportunity to rebut the same.
34. Even otherwise, on a wholesome consideration of the facts and
circumstances of the case of the parties, there is no doubt that disputed question
of facts is involved herein. In this regard, the authority cited by the learned AAG
that is, the case of Puna Hinda (supra), para 18 and 24 which is relevant is quoted
herein below:
“18. Mr Nataraj also placed reliance on the judgment of this
Court reported as Joshi Technologies International Inc. v. Union of
India, (2015) 7 SCC 728 wherein the following was held: (SCC pp.
757-58 & 766, paras 55, 59 & 69)
“55. Law in this aspect has developed through a
catena of judgments of this Court and from the reading of 2026:MLHC:1033
15
these judgments it would follow that in pure contractual
matters the extraordinary remedy of writ under Article 226
or Article 32 of the Constitution cannot be invoked.
However, in a limited sphere such remedies are available
only when the non-Government contracting party is able to
demonstrate that it is a public law remedy which such party
seeks to invoke, in contradistinction to the private law
remedy simpliciter under the contract. Some of the case law
to bring home this cardinal principle is taken note of
hereinafter.
59. On the basis of these facts, this Court observed that
the aforesaid observations of the High Court, (1986 SCC
OnLine All 110) relying upon Ramana Dayaram Shetty case,
(1979) 3 SCC 489 were not correct. Thus observed the Court,
speaking through Ratnavel Pandian, J.: (Ajai Pal Singh case,
(1989) 2 SCC 116, SCC pp. 125-26, paras 21-22)
‘21. This finding in our view, is not correct in
the light of the facts and circumstances of this case
because in Ramana Dayaram Shetty case, (1979) 3
SCC 489, there was no concluded contract as in this
case. Even conceding that the BDA has the trappings
of a State or would be comprehended in "other
authority" for the purpose of Article 12 of the
Constitution, while determining price of the
houses/flats constructed by it and the rate of monthly
instalments to be paid, the "authority" or its agent
after entering into the field of ordinary contract acts
purely in its executive capacity. Thereafter the
relations are no longer governed by the constitutional
provisions but by the legally valid contract which
determines the rights and obligations of the parties
inter se. In this sphere, they can only claim rights
conferred upon them by the contract in the absence of
any statutory obligations on the part of the authority
(i.e. BDA in this case) in the said contractual field.
22. There is a line of decisions where the
contract entered into between the State and the
persons aggrieved is non-statutory and purely
contractual and the rights are governed only by the
terms of the contract, no writ or order can be issued 2026:MLHC:1033
16
under Article 226 of the Constitution of India so as to
compel the authorities to remedy a breach of contract
pure and simple - Radhakrishna Agarwal v. State of
Bihar, (1977) 3 SCC 457, Premji Bhai Parmar v.
DDA, (1980) 2 SCC 129 and Divl. Forest Officer v.
Bishwanath Tea Co. Ltd. (1981) 3 SCC 238.
69. The position thus summarised in the aforesaid
principles has to be understood in the context of discussions
that preceded which we have pointed out above. As per this,
no doubt, there is no absolute bar to the maintainability of
the writ petition even in contractual matters or where there
are disputed questions of fact or even when monetary claim
is raised. At the same time, discretion lies with the High
Court which under certain circumstances, it can refuse to
exercise. It also follows that under the following
circumstances, “normally”, the Court would not exercise
such a discretion:
69.1. The Court may not examine the issue unless the
action has some public law character attached to it.
69.2. Whenever a particular mode of settlement of
dispute is provided in the contract, the High Court would
refuse to exercise its discretion under Article 226 of the
Constitution and relegate the party to the said mode of
settlement, particularly when settlement of disputes is to be
resorted to through the means of arbitration.
69.3. If there are very serious disputed questions of
fact which are of complex nature and require oral evidence
for their determination.
69.4. Money claims per se particularly arising out of
contractual obligations are normally not to be entertained
except in exceptional circumstances.”
“24. Therefore, the dispute could not be raised by way of a writ
petition on the disputed questions of fact. Though, the jurisdiction of
the High Court is wide but in respect of pure contractual matters in
the field of private law, having no statutory flavour, are better
adjudicated upon by the forum agreed to by the parties. The dispute
as to whether the amount is payable or not and/or how much amount
is payable are disputed questions of facts. There is no admission on 2026:MLHC:1033
17
the part of the appellants to infer that the amount stands crystallised.
Therefore, in the absence of any acceptance of joint survey report by
the competent authority, no right would accrue to the writ
petitioner only because measurements cannot be undertaken after
passage of time. Maybe, the resurvey cannot take place but the
measurement books of the work executed from time to time would
form a reasonable basis for assessing the amount due and payable to
the writ petitioner, but such process could be undertaken only by the
agreed forum i.e. arbitration and not by the writ court as it does not
have the expertise in respect of measurements or construction of
roads.”
35. Similarly, the case of Joshi Technologies International Inc.(supra),
para 55, 59, 69.2 being relevant is reproduced herein below as:
“55. Law in this aspect has developed through catena of
judgments of this Court and from the reading of these judgments it
would follow that in pure contractual matters the extraordinary
remedy of writ under Article 226 or Article 32 of the Constitution
cannot be invoked. However, in a limited sphere such remedies are
available only when the non-Government contracting party is able to
demonstrate that it is a public law remedy which such party seeks to
invoke, in contradistinction to the private law remedy simpliciter
under the contract. Some of the case law to bring home this
cardinal principle is taken note of hereinafter.
59. On the basis of these facts, this Court observed that the
aforesaid observations of the High Court relying upon Ramana
Dayaram Shetty case, (1979) 3 SCC 489, were not correct. Thus
observed the Court, speaking through Ratnavel Pandian. J.: (Ajai
Pal Singh case, (1989) 2 SCC 116, SCC pp. 125-26, paras 21-22)
“21. This finding in our view, is not correct in the light
of the facts and circumstances of this case because in Ramana
Dayaram Shetty case (1979) 3 SCC 489 there was no concluded
contract as in this case. Even conceding that the BDA has the
trappings of a State or would be comprehended in 'other authority'
for the purpose of Article 12 of the Constitution, while determining
price of the houses/flats constructed by it and the rate of monthly
instalments to be paid, the 'authority' or its agent after entering into 2026:MLHC:1033
18
the field of ordinary contract acts purely in its executive capacity.
Thereafter the relations are no longer governed by the
constitutional provisions but by the legally valid contract which
determines the rights and obligations of the parties inter se. In this
sphere, they can only claim rights conferred upon them by the
contract in the absence of any statutory obligations on the part of
the authority (i.e. BDA in this case) in the said contractual field.
22. There is a line of decisions where the contract
entered into between the State and the persons aggrieved is non-
statutory and purely contractual and the rights are governed only
by the terms of the contract, no writ or order can be issued under
Article 226 of the Constitution of India so as to compel the
authorities to remedy a breach of contract pure and simple -
Radhakrishna Agarwal v. State of Bihar (1977) 3 SCC 457, Premji
Bhai Parmar v. DDA (1980) 2 SCC 129 and Divl. Forest Officer v.
Bishwanath Tea Co. Ltd. (1981) 3 SCC 238"
69.2. Whenever a particular mode of settlement of dispute is
provided in the contract, the High Court would refuse to exercise its
discretion under Article 226 of the Constitution and relegate the
party to the said mode of settlement, particularly when settlement of
disputes is to be resorted to through the means of arbitration.”
36. Based on the authorities referred to herein above, the principle has
also been adverted to by this Court in the case of Smti. Priyanchi R. Marak
(supra), the relevant para being noted herein below as para 37, 38 and 39:
“37. Venturing to ignore such a situation repleted with disputed
question of facts would reduce this Court to a trial court wherein
evidence has to be looked into and appreciated, which is not a duty
cast upon a constitutional Court, considering the facts and
circumstances of this instant case. In this regard, the observations of
a Division Bench of this Court in the case of Adarsh Saraswati
Mahila Shiksha and Gramin Vikas Samiti v. State of Meghalaya &
Ors. in MC(WA) No. 16/2023 in W.A. No. 22/2023, at para 7 of
Judgment dated 19.07.2023, is found relevant to the factual situation
of this instant case, wherein it was observed as follows:
2026:MLHC:1033
19
“7. For the wealth of reasons indicated in the order
impugned, the writ court held that the writ petition was liable
to be dismissed as not maintainable. Indeed, notwithstanding
the wide authority available to a Constitutional Court under
Article 226 of the Constitution, there is an element of self-
restraint that is exercised. Since writ proceedings are
decided on affidavit evidence and on summary procedure,
disputed questions of fact which require proof are not
entertained. In any event, at the end of the day, the real
grievance of the petitioner is that the petitioner has been
unfairly treated and has been deprived of the profits that the
petitioner was entitled to upon successful completion of the
work. Such grievance sounds in money and the relief that the
petitioner should pursue should be by way of a suit for
damages.”
38. This Court having convinced itself that there appears to be
question of disputed facts to be looked into, the relevant authorities
cited in this regard may not be off the mark. In the case of Poona
Hinda(supra) at para 24 the Hon’ble Supreme Court has held that
“…Though, the jurisdiction of the High Court is wide but in respect
of pure contractual matters in the field of private law, having no
statutory flavour, are better adjudicated upon by the forum agreed to
by the parties. The dispute as to whether the amount is payable or
not and/or how much amount is payable are disputed questions of
facts.”
39. In the case of Joshi Technologies International Inc.(supra) at
para 69 of the same, the Hon’ble Supreme Court has observed that
though there is no bar to the maintainability of a writ petition in a
contractual matter where there are disputed questions of fact or even
when monetary claim is raised, however discretion is bestowed upon
the High Court to refuse to exercise such jurisdiction, when there are
serious disputed questions of fact and money claims arising out of
contractual obligations are normally not to be entertained, the fact
being that there is proper forum for determination of the parties’
right, for example a civil court of competent jurisdiction.”
37. In view of the above, this Court is of the opinion that the grievance
of the petitioner can only be remedied by an approach before the civil court of 2026:MLHC:1033
20
competent jurisdiction. Considering the fact that the proceedings before this
Court has travelled a long distance since the year 2022, therefore, provided the
petitioner approach such civil court within a period of 60 days from the date of
this order, the period spent before this Court is hereby condoned as far as the
rigors of the provisions of the Limitation Act is concerned.
38. In the final analysis, this petition is hereby disposed of in the terms
hereinabove set out. No costs.
Judge
2026:MLHC:1033
Legal Notes
Add a Note....