THROUGH ITS MANAGING DIRECTOR SRI RASENDRA KUMAR SINGH SON OF LATE RAJENDRA SINGH Vs. EAST CENTRAL RAILWAY (ENGINEERING DEPARTMENT), THROUGH ITS CHIEF ADMINISTRATIVE OFFICER

JUDGEMENT

(1.) BOTH these two writ applications are by the same Company against the same respondents and in relation to similar work involving the same dispute and, as such, with consent of parties, have been taken up together and heard for final disposal on merits at this stage itself. The dispute essentially is with regard to compensation payable in relation to cost escalations during period of contract. Petitioner wants implementation of the policy of Railway Board dated 28.09.2007 which, under certain circumstances, removed barrier on price escalation, the agreement amongst parties being subsequent thereto and the Railway contends that the policy would apply only to future contracts thereby meaning to tenders which are floated after policy.

(2.) AS the facts are similar in both the writ petitions, in material particulars relevant for decision, the facts of the first case being CWJC No. 16459 of 2008 are being noted in detail. The two writ petitions, for the sake brevity, are hereinafter referred to as the first case and the second case, as the case may be.

(4.) PETITIONER is a Company incorporated under the Companies Act, 1956 and is a registered Class -I contractor mainly engaged in civil constructions and is also registered with the Indian Railways. On 22.07.2007, East Central Railways floated two tenders for construction of several residential units, staff quarters and other miscellaneous works at Sonepur/Hajipur. They were tender notice No. 21 of 2007 -2008 (open), tender notice No. 57 of 2007 -2008 respectively. Petitioner, being desirous of contesting in the tenders, filed tender papers for both the tenders which were opened on 05.09.2007. In the first case, the period for completion of work was 15 months from the date of work order and it was 18 months in the second case.