ARJUNDAS NARAINDAS CONSTRUCTION COMPANY Vs. UNION OF INDIA

JUDGEMENT

(1.) HEARD the parties.

(2.) ORDINARILY , this Court does not interfere in disputes relating to contracts even when one of the parties is the State Government or the Union of India. But cases involving apparent arbitrariness and lack of fairness amounting to clear violation of Article 14 of the Constitution constitute an exception. The present case comes under that category. In the present case, the controversy between the parties does not relate to any right based upon disputed facts. The dispute is only over an issue of law as to whether levy of royalty by the State Government on ordinary earth used for filling or leveling purposes in construction of embankment, road, railways and buildings under the provisions of Bihar Minor Mineral Concession Rules, 1972 (hereinafter referred to as "the Rules") will be covered by the expression "statutory tax" as finds mention in Clause 23.4 of the Chapter -Ill of the document containing the Conditions of Tender and Instruction to Tenderers or will it amount only as additional cost of earth.

(3.) FROM the aforequoted Clause 23.4, it is evident that any increase in the rates of taxes or levy of any new type of statutory tax shall be liability of the Railways.