STATE OF GUJARAT Vs. PRAVINCHANDRA C KHATIWALA

JUDGEMENT

(1.) The present Letters Patent Appeals are preferred by the State of Gujarat against the judgment dated 22.3.96, passed by the learned Single Judge of this Court in Special Civil Application Nos. 933 and 934 of 1988, whereby the learned Single Judge has allowed both the said petitions.

(2.) Short facts leading to the present appeals are as under.

(3.) Original petitioners of the above Special Civil Applications (referred to hereinafter as "the petitioners") are the contractors and they were granted govt. contract on the terms and conditions as agreed. One of the terms was Clause 20B. Since we are not concerned with the other terms of the contract, the same are not dealt with here. It is the case of the State Government that since the price quoted of certain items were exceeding the prescribed price, overpayment of total Rs. 55,18,426-89 ps. was made so far as the petitioner of Special Civil Application No. 933/88 is concerned and overpayment of Rs. 30,10,163.23 ps. was made so far as the petitioner of Special Civil Application No. 934/88 is concerned. Since the government had no amount available for the purpose of set off or appropriation thereof, Clause 20B of the contract which was agreed by the original petitioners was invoked and notices were issued to the original petitioners calling upon them to make the payment as mentioned in the notice. Against those orders passed by the authorities, the petitioners have preferred the Special Civil Applications referred to hereinabove, challenging the said notices. Contention before the learned Single Judge in the aforesaid Special Civil Applications was that these notices are without jurisdiction since there is no adjudication of the issue and it was also contended by the petitioners that the principles of natural justice are not followed. However, the learned Single Judge by interpreting the provisions of Clause 20B observed that the same cannot be invoked as the said provisions are attracted where claim has been ascertained under the appropriate provisions of law and the same has become due. Reference was made earlier by the learned Single Judge of the decision of the Apex Court in the case of Union of India vs. Raman Iron Foundry reported in AIR 1974 SC 1265 and ultimately, it was observed by the learned Single Judge that the impugned notices were without any authority of law and therefore, the notices were quashed. Against the said decision of the learned Single Judge, the State of Gujarat has preferred the present Letters Patent Appeals.