Petitioner sought writ relief against recovery proceedings following a road construction contract dispute. Court held that pursuant to the contract's dispute resolution clause, the matter must be referred to the competent authority.
Competent Authority to appoint itself and pass orders within 45 days; recovery against petitioner stayed until such orders.
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IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Writ Petition (M/S) No.996 of 2020
Ram Narayan ….Petitioner
Versus
State of Uttarakhand & others
....Respondents
Present:- Mr. Vikas Bahuguna, Advocate, for the petitioner. Mr. N.S. Pundir, Deputy Advocate General, for the State/respondent no.1. Mr. S.S. Chauhan, Advocate, for respondent nos.3 & 4.
Hon’ble Sudhanshu Dhulia, J .
The petitioner was given a contract to construct the road from “Marwari to Thaing Motor Road, Stage – 1 Work”. The time period for construction of the road was extended from time to time, but it is an admitted fact that ultimately the petitioner did not complete the project.
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redressal system. Clause 24.1 of the General Condition of Contract is reproduced hereunder:-
“24.1. If any dispute or difference of any kind what-so-ever shall arises in connection with or arising out of this contract or the execution of works or maintenance of the Works there under, whether before its commencement or during the progress of works or after the termination, abandonment or breach of the Contract, it shall, in the first instance, be referred for settlement to the competent authority, described along with their powers in the Contract Data, above the rank of the Engineer. The competent authority within 45 days of arising the dispute or difference shall, within a period of forty-five days after being requested in writing by the Contractor to do so, convey his decision to the Contractor. Such decision in respect of every matter so referred shall, subject to review as hereinafter provided, be final and binding upon the contractor. In case the Works is already in progress, the Contractor shall proceed with the execution of the Works, including maintenance thereof, pending receipt of the decision of the competent authority as aforesaid, with all due diligence.”
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petitioner. Consequently the respondent shall appoint the Competent Authority to hear the petitioner and the concerned person which shall pass appropriate orders within 45 days, as stipulated.
disposed.
(Sudhanshu Dhulia, J.) 01.07.2020
Nitesh/
1 issue framed by the court
Whether the dispute resolution clause in the contract mandates referring the dispute to the competent authority.
Ram Narayan
State of Uttarakhand
Sudhanshu Dhulia, J
As recorded by the court registry
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