IMECO LTD Vs. BEML LTD

JUDGEMENT

(1.) THIS writ application is filed by the petitioner company for issuing a writ in the nature of mandamus commanding the respondent no.1 to release the payment of invoice raised by the petitioner for a total sum of Rs.4,81,54,608. The aforesaid amount was claimed by the petitioner company for execution of work orders and or contracts awarded to it by the respondent no.2 entering into sub-contracts with the petitioner company for manufacturing and supply of additional Berth (Middle Berth) for fitment of the same on longitudinal side of existing AC 3- Tier Railway Coaches and Sleeper Class Rail Coaches running within the jurisdiction of Southern Railway. The petitioner was a company within the meaning of companies Act, 1956 having its registered office at "IMECO House ", Budge Trunk Road, Dakghar, Maheshtala, Kolkata-700141 with its workshop situated at Kharagpur. The respondent no.1 was a company incorporated under the Companies Act, 1956 as a public sector undertaking for manufacturing Rail Coaches, spare parts and Mining Equipments. The Government of India owned 54% of total equity shares and balance 46% was held by public, financial institutions, foreign institutional investors, bank and employees. The respondent no.1 had been designated as "Mini Ratna Category-II " and plays a privotal role and the service core sectors like, defence, rail, power, mining and infrastructure. In other words, the respondent no.1 is a state within the meaning of Article 12 of the Constitution of India having deep and pervasive control of the respondent no.2 on it.

(2.) WITH the objective of increasing passenger carrying capacities it had been decided by the respondent no.3 that the additional Berths(Meddle berths) should be provided on longitudinal side of existing AC 3-Tier Rail Coaches and Sleeper Class Rail Coaches. The above decision was communicated to all General Managers, All India Railways by the competent authority of the respondent no.3 under communication dated April 25, 2007 for taking immediate action of expeditious implementation of that decision under reference to the respondent no.3. The competent authority of the respondent no.3 further informed the General Managers, All India Railways under its communication dated May 22, 2007 that with concurrence of the financial department of the Ministry of Railways that steps were being taken for presenting supplementary demand for grants before the Parliament in its Monsoon Session. The Senior Divisional Mechanical Engineer, Southern Railway and Divisional office awarded contracts for the aforesaid jobs to the respondent no.1 after floating open tender on all India basis by various Zonal Railways. The respondent no.1 entered into sub-contract with the petitioner company for manufacturing and supply of Middle Berths in longitudinal side of 3-Tier Rail Coaches run within the jurisdiction of Southern Railways, amongst other similar sub-contracts in respect of other Indian Railways. The above sub-contract was executed at the office of the petitioner company lying situated at within the territorial jurisdiction of this High Court.

(3.) BY another communication dated June 22, 2010 the competent authority of the Railway Board directed the Chief Mechanical Engineer of India Railways for an early reconciliation and settlement of pending bills. The above communication is quoted below: