INFRA DEVELOPERS Vs. STATE OF M P

JUDGEMENT

(1.) Challenging the action of the respondents in issuing a recovery order dated 15.4.2008 Annexure P -1 at the instance of the Executive Engineer, National Highway Division, petitioner has filed this writ petition.

(2.) Petitioner was granted a contract vide written agreement Annexure P -2 on 14.2.2006 for widening and strengthening of road from K.m. 1 to K.m.17 in National Highway No.86. Certain dispute arose in the matter of execution of contract and finally the dispute is now pending consideration before the M.P. Arbitration Tribunal in accordance to the arbitration clause available in the agreement.

(3.) Placing reliance on the judgments rendered by the Division Bench of this Court in the case of B.B.Verma & Ors. Vs. State of MP & Anr., 2008 1 MPHT 17, so also in W.P.No.640/1998 (Thakurdas Narang & Sons Vs. State of MP & Ors.) decided M/s Infra Developers Vs. State of MP & Ors. on 13.4.1999, M/s F.A.Construction, Mumbai Vs. Narmada Valley Development Department & Anr., 2006 2 MPHT 216, it was argued by learned Sr. Counsel for the petitioner that when a dispute is raised and is pending, the liquidated damages cannot be claimed by way of issuance of the Revenue Recovery Certificate without adjudication of the dispute before the competent forum or authority. It is pointed out by Shri Rao, learned Sr. Counsel that in all these cases, principles have been well settled and in the present case also, without adjudication of the same by any proper forum, the damages cannot be claimed.