Dismissed

Shabnam Quraishi v. State of U P and 2 Others

Allahabad HC15 Mar 2019WRIC/5470/2019

Case brief

AI extract

What is this about?

This court held that a writ petition under Article 226 is not maintainable to enforce contractual obligations or claim money for breach of a non-statutory contract. Relying on Supreme Court precedents, the court ruled that disputes regarding contract interpretation, breach, or non-payment must be settled in civil courts or via arbitration, not through extraordinary writ jurisdiction.

What did the court decide?

Mandamus sought by the petitioner was not granted, and the petition was dismissed.

Shabnam Quraishi Vs State of U P and 2… — Contract and Commercial Disputes | Allahabad HC (2019)

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Court No. - 34

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Case :- WRIT - C No. - 5470 of 2019

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Petitioner :- Shabnam Quraishi Respondent :- State Of U P And 2 Others Counsel for Petitioner :- Akhilesh Kumar Counsel for Respondent :- C.S.C.,C.K.Parekh

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Hon'ble Sudhir Agarwal,J. Hon'ble Rajendra Kumar-IV,J.

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Heard Sri Akhilesh Kumar Rajbhar, learned Counsel for petitioner, learned Standing Counsel for State-respondents and Sri C.K. Parekh, learned Counsel for Nagar Nigam.

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In the present writ petition, petitioner's parking contract has been cancelled by impugned order dated 07.02.2019.

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Petitioner claim that parking contract has been wrongly cancelled. The dispute has arisen from contract. In our view, if there is wrong breach of contract under Section 27 of Contract Act, 1972 (hereinafter referred to as "Act, 1972") there is a remedy in common law but a writ petition under Article 226 of the Constitution of India is not maintainable.

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Learned Counsel for petitioner has placed reliance on Supreme Court's Judgements in Zonal Manager, Central Bank of India versus Devi Ispat Limited and others, (2010) 11 SCC 186 and Noble Resources Ltd. versus State of Orissa and another, (2006) 10 SCC 236 but having gone through the same and do not find that the same has any application to the facts of this case.

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This question has been considered specifically in Hindustan Petroleum Corporation Limited and another Vs. Dolly Das 1999 (4) SCC 450 wherein Court said that in absence of any constitutional or statutory rights being involved, a writ proceeding would not lie to enforce contractual obligations even if it is sought to be enforced against State or to avoid contractual liability arising thereto. In the absence of any statutory right, Article 226 cannot be availed to claim any money in respect of breach of contract or tort or otherwise.

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In Kerala State Electricity Board and another Vs. Kurien E. Kalathil and others 2000 (6) SCC 293 , Court said that interpretation and implementation of a clause in a contract cannot be subject-matter of a writ petition. Whether a contract envisages actual payment or not is a question of construction of contract. If a term of contract is violated, ordinarily remedy is not the writ petition under Article 226. A contract would not become statutory simply because it is for construction of a public utility and it has been awarded by a statutory body. A statute may expressly or impliedly confer power on a statutory body to enter into contracts in order to enable it to discharge its functions. Disputes arising out of the terms of such contracts or alleged breaches have to be settled by the ordinary principles of law of contract. The fact that one of the parties to the agreement is a statutory or public body will not by itself affect the principles to be applied. The disputes about the meaning of a covenant in a contract or its enforceability have to be determined according to the usual principles of the Contract Act. Every act of a statutory body need not necessarily involve an exercise of statutory power. Statutory bodies have power to contract or deal with property like private parties. Such activities may not raise any issue of public law. When it is not shown that contract is statutory and parties are within the realm of their authority, contract between the parties is in the realm of private law. The disputes relating to interpretation of terms and conditions of such contract cannot be agitated in a petition under Article 226 of the Constitution. The Court further said:

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"That is a matter for adjudication by a civil court or in arbitration if provided for in the contract. Whether any amount is due and if so, how much and refusal of the appellant to pay it is justified or not, are not the matters which could have been agitated and decided in a writ petition."

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Following the above authorities, a Division Bench of this Court in M/S Prabhu Construction Company through its Proprietor Vs. State of U.P. and another (Writ C No. 25075 of 2014) decided on 05.05.2014 said as under:

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"In the present case, there is nothing on the record which may persuade us to hold that the contract is a statutory contract. The remedy of the contractor, if he is aggrieved by non-payment, would be to either file an ordinary civil suit or if there is an arbitration

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agreement between the parties, to invoke the terms of the agreement."

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The Court also relied on its earlier decision in M/s R.S. Associate Vs. State of U.P. and others (Writ-C No. 11544 of 2014) decided on 24.02.2014.

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Again in Alaska Tech Vs. State of U.P. 2014 (6) ADJ 591 , a Division Bench of this Court observed as under:

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"2. We are of the view that, in a matter of this nature which pertains to alleged non-payment of dues under a contract for supply of goods, it would neither be prudent nor judicious for this Court, in exercise of its jurisdiction under Article 226 of the Constitution, to grant relief, which is in substance, is a prayer for a money decree. These matters, it must be emphasized, are not those relating to statutory contracts but are purely non-statutory contracts. Whether work has been satisfactorily performed, whether the rates which had been quoted are in accordance with the terms of the contract, whether the goods were of a quality as mandated, and above all, whether the claim is within limitation or otherwise, are issues which cannot appropriately be adjudicated upon under Article 226 of the Constitution."

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The same view has been reiterated in M/S Goyal Stationary Mart through its Proprietor State of U.P. (Misc. Bench No. 10971 of 2015) decided on 27.11.2015; Budh Gramin Sansthan Vs. State of U.P. 2014 (7) ADJ 29; Kaka Advertising Agency Vs. U.P. Technical University and others 2014 (11) ADJ 227; M/s A.K. Constructions Vs. State of U.P. and others (Misc. Bench No. 1909 of 2014) decided on 07.03.2014; Major Travels through Proprietor Vs. State of U.P. and others (Misc. Bench No. 3472 of 2014) decided on 25.04.2014; and Uttaranchal Paper Converters and Publishers through Proprietor Vs. State of U.P. and others (Misc. Bench No. 3898 of 2015) decided on 13.05.2014.

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In view thereof, we are clearly of the view that mandamus sought by petitioner cannot be granted in extraordinary equitable jurisdiction under Article 226 of the Constitution.

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Dismissed accordingly.

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Order Date :- 15.3.2019 I.A.Siddiqui

Shabnam Quraishi v. State of U P and 2 Others

Case brief

What is this about?

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Shabnam Quraishi v. State of U P and 2 Others

Case brief

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