R D CONSTRUCTION, DUMKA Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) The petitioner has approached this Court seeking a direction upon the respondents for issuance of completion certificate with respect to the work alloted to the petitioner for which an agreement was signed on 15.10.2009 and for a further direction upon the respondents to refund a sum of Rs. 67,56,073/with interest which has been deducted on account of time extension granted to the petitioner. Vide order dated 22.07.2014, I.A. No. 1379 of 2014 filed by the petitioner for amending the prayer in the writ petition for challenging communication dated 04.05.2012 has been allowed and thus, the said communication dated 04.05.2012 has also been impugned by the petitioner in the present proceeding. A further claim for award of interest @ 12% on the amount deducted from the petitioner has also been made in the writ petition.

(2.) The brief facts shorn of unnecessary details can be stated thus:

(3.) A counteraffidavit has been filed on behalf of respondent nos. 2 and 4 stating that the agreement was rescinded and final measurement was taken by the concerned executive engineer however, in view of the letter of the petitioner to the Principal Secretary, Road Construction Department and the affidavit and revised work programme submitted by the petitioner, it was granted last chance to complete the work upto 31.03.2012 which however, could not be accomplished by the petitioner and therefore, finally the agreement was rescinded on 10.07.2012. It is stated that the work order was issued on 01.10.2009 and the schedule completion period for the work was 15 months, that is, upto 31.12.2010. As the progress of work was not satisfactory, several letters were issued to the petitionercompany and vide letter dated 08.11.2011, the petitioner was ordered to complete the work on or before 28.11.2011 failing which, the agreement would be rescinded and final measurement would be taken on 28.11.2011. The petitioner failed to complete the work by 28.11.2011 and therefore, vide letter dated 02.12.2011, the agreement was rescinded. The petitioner thereafter submitted letter dated 24.12.2011 along with affidavit and revised work programme, seeking an opportunity to complete the work by 31.03.2012 which was accepted by the department and the respondent no.4 vide letter dated 09.01.2012 granted time extension upto 31.03.2012 and the order rescinding the agreement was recalled. However, the petitioner again failed to complete the work within the extended period and therefore, letters dated 11.06.2012, 19.06.2012, 23.06.2012 and 29.06.2012 were issued to the petitioner. Finally, the agreement was rescinded vide order dated 10.07.2012 which was approved by the Chief Engineer vide letter dated 21.07.2012. The petitioner committed fundamental breach of contract as per Clause 59.1 and 59.2 (a), (e), (f) & (g) of the agreement and therefore, the agreement was terminated.