LAWS(MANIP)-2020-8-31

NIRAJ CEMENT STRUCTURALS LTD. Vs. UNION OF INDIA

Decided On August 20, 2020
Niraj Cement Structurals Ltd. Appellant
V/S
UNION OF INDIA Respondents

JUDGEMENT

(1.) The appellant Contractor invokes Article 226 of the Constitution of India pleading that the action of the respondent No. 1 and 2 to terminate the contract is arbitrary and contrary to the mandatory provisions of the Article of the Engineering Procurement and Construction (EPC, in short) Agreement dated 08.11.2017, namely, Article 23.1.2. The appellant also pleads that the Detailed Project Report (DPR, in short) is unworkable, making an emphatic allegation of inexactitude that is after the agreement is signed and the work had started. The appellant pleads that the respondents are at fault and the termination of contract is an attempt to cover up the inherent error in the Detailed Project Report (DPR)/ feasibility report. Respondents, on the other hand, specifically pleaded that the writ petition is not maintainable, it is an abuse of process of court, further the termination notice is perfectly in order as per Article 23.1.2 of the Agreement. Further no cause of action has been pleaded in the writ petition and interim order was obtained by suppression of facts. Since no cause of action arose within the jurisdiction of this Court, the learned Single Judge was correct in dismissing the writ petition.

(2.) In this case, the appeal was filed on 04.04.2019 and taken up for hearing on several dates. Thereafter, both the appellant's counsel and the respondents' counsel have been taking substantial time to argue the case. The last hearing was on 03.03.2020. Since it is a commercial litigation and at their instance, the Court gave enough leeway to either side to put forth their arguments. Finally, the arguments got almost concluded but due to COVID- 19 pandemic, the all India lockdown came into force and the Bar categorically stated in writing that they do not want listing of regular old cases during this period and that only urgent motion cases should be taken up. However, on the direction of the Hon'ble Supreme Court, the respective counsels completed their argument on 14.8.2020 and 17.08.2020.

(3.) On the various dates of hearing, Mr. H.S. Paonam, learned senior counsel assisted by Mr. A. Arunkumar appeared for the appellant, Ms Madhavi Divan, learned ASG assisted by Mr. S. Suresh, learned ASG appeared for respondent No. 1 and 2 and Mr. Abir Phukan and Mr. Irom Dening learned counsel appeared for respondent No. 3 and 4.