State appeals against writ orders restoring work orders cancelled over allegedly fraudulent EMD. Court proposed a via-media: contractor undertakes to complete work at 2019 agreement rates without escalation or extension; State agreed. Single Judge's order modified to that extent and appeals disposed of.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT PATNA Letters Patent Appeal No.114 of 2021 In
Civil Writ Jurisdiction Case No.4020 of 2020
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... ... Appellant/s
Versus
M/s Khushee Construction through its Power of Attorney Holder, namely Shree Rajeev Kumar, aged about 32 years, (Male), Son of Virendra Singh, Resident of Village - Rampur Dumra, P.S. Maranchi, District- Patna.
... ... Respondent/s
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with Letters Patent Appeal No. 126 of 2021
In
Civil Writ Jurisdiction Case No.3963 of 2020
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... ... Appellant/s
Patna High Court L.P.A No.114 of 2021 dt.29-07-2024 2/5
Versus
M/s Khushee Construction through its Power of Attorney Holder, namely Shree Rajeev Kumar, aged about 32 years, (Male), Son of Virendra Singh, Resident of Village - Rampur Dumra, P.S. Maranchi, District- Patna.
... ... Respondent/s
| ====================================================== Appearance : (In Letters Patent Appeal No. 114 of 2021) For the Appellant/s : Mr.Anjani Kumar, AAG-4 Mr.Alok Kumar Rahi, AC to AAG-4 |
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| For the Respondent/s : Mr.Vikas Kumar, SC-11 (In Letters Patent Appeal No. 126 of 2021) For the Appellant/s : Mr.Anjani Kumar, AAG-4 Mr.Alok Kumar Rahi, AC to AAG-4 |
| For the Respondent/s : Mr.Vikas Kumar, SC-11 ====================================================== |
| CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE PARTHA SARTHY ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) |
Date : 29-07-2024
Read order no. 10 dated 24.06.2024:
Having heard the learned Additional Advocate General who argued the matter, we were of the prima facie opinion, without looking into the merits of the matter, that the respondentcontractor’s submission before this Court that he is willing to carry out the work on the rates agreed upon in the year 2019 has to be considered.
2. The allegation on which the cancellation of work order was made was that the EMD was fraudulently submitted. However, after the work order was issued the performance guarantee was properly made. In fact, despite the EMD having been submitted before the work order was issued, the respondents did not verify it.
3. We did not go into the merits of the matter. However, we were of the opinion that the interest of
Patna High Court L.P.A No.114 of 2021 dt.29-07-2024
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the State would be served, if the respondent, who was the writ petitioner, agrees to carry out the contract as submitted by the learned counsel, on the very same rates agreed upon in the year 2019. The judgment was in the year 2020 and the appeal in the year 2021. Till date, the work has not commenced. Even if we set aside the judgment, there would be a re-tender and there would necessarily be escalation of costs. In such circumstances, we thought it fit that the learned Additional Advocate General should get instructions from the Department as to whether they would prefer the continuation of the tender, in which event, the respondent-petitioner would have to undertake before this Court that the work would be carried out on the basis of the rates fixed earlier in 2019. However, if the department decides otherwise and the judgment is upheld we may have to give liberty to the petitioner to seek escalation of costs, by virtue of the passage of time.
4. Post this case on 4th of July, 2024.
appellant-State on 03.07.2024 from which Paragraph No. 7 is extracted hereunder:
‘That in compliance of order dated 24.06.2024, after considering the entire materials available on record no objection to allow the respondent to continue with the tender subject to undertaking that the respondent shall complete the remaining work of the scheme on the basis of rate fixed under the agreement in 2019 in stipulated
Patna High Court L.P.A No.114 of 2021 dt.29-07-2024 4/5
time without any extension of time.’
‘That respondent furnishing an undertaking that he is ready and willing to carry out remaining works in question as per terms and conditions and rate fixed in the agreement of the year 2019.’
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the undertaking made on behalf of the 1st respondent. The learned Counsel for the respondent also submits that there are certain bills pending with the respondent, disbursement of which will be looked into, on the contractor satisfying the appellant about the completion of such work, for which the bills were raised.
(K. Vinod Chandran, CJ)
(Partha Sarthy, J)
Anushka/-
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| Uploading Date | 30.07.2024 |
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1 issue framed by the court
Whether the cancelled work order could be restored on 2019 rates with contractor's undertaking to complete remaining work without escalation or time extension
The State of Bihar through the Secretary, Public Health Engineering Department
The Secretary, Public Health Engineering Department, Govt. of Bihar, Patna
M/s Khushee Construction through its Power of Attorney Holder Shree Rajeev Kumar
K. Vinod Chandran
Partha Sarthy
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
