GOVERNMENT OF A P Vs. RAMA ENGINEERING CONSTRUCTIONS

JUDGEMENT

(1.) Learned Single Judge by his order dated 2-8-2000 allowed the writ petition of the respondent-contractor, hereinafter referred to as the 'petitioner', thereby declaring the action of the first appellant in issuing the order in G.O.Ms.No.118, Irrigation and CAD Department, dated 29-6-1998 and the consequential actions of the other appellants in giving effect to the impugned orders by way of making payment under final bill to the writ petitioner resulting in non-payment of Rupees 3.03 crores as illegal, arbitrary, discriminatory and unconstitutional and consequently directing the appellants to make payment of the withheld amount, including the recovered amount with interest from the date of passing of the impugned order.

(2.) The appeal questioning the said order of the learned Single Judge is filed by the State Government, inter alia, on the ground that the learned Single Judge ought not to have entertained money claim of the writ petitioner in respect of a commercial transaction arising out of a non-statutory concluded contract in exercise of jurisdiction under Article 226 of the Constitution of India, more particularly in view of highly contentious and disputed questions of fact arising for consideration.

(3.) Facts in brief are that the petitioner was awarded work of excavation of Srisailam Right Branch Canal from 116 KMs to 141 KMs including construction of structures and lining under Package XIII. The agreement was entered into between the petitioner and the respondents on 8-5-1991 at a cost of Rs.23.57 crores. Work was commenced on 2-7-1991. It was to be completed by June 1994, but the period was extended up to 30-6-1995. Again three months extension was granted up to 30-9-1995. Extension became necessary owing to change in scope of the work and addition of new items of work of the project resulting in increase of the amount of contract. Different items of works were included in the tender estimates with reference to the requirements indicated in the bidding documents. It also indicated quantities of various items of excavation of soil work, etc. Amongst other items the quantity of F&F rock was estimated as 119 Cubic Metres both in the tender estimates and the bidding documents. After commencement of the work, it was noticed that the quantity of F&F rock was many times more than indicated in the estimates and the bidding documents. Variation was in unreasonable proportion and was on very high side. This also led to the re-classification of the strata during the course when canal was exposed. The actual execution of F&F Rock thus came to 6,94,824 Cubic Metres., as against 119 Cubic Metres. The rate for F&F rock in the agreement was mentioned at Rs.126/- per Cubic Metre.