RAAJ CONSTRUCTION CO Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) Seeking a direction for release of arrears of amount for the work executed by the petitionercompany, the present writ petition has been filed.

(2.) The brief facts of the case are that, pursuant to Notice Inviting Tender dated 16.01.1999, the petitioner was awarded work for execution of Residual Earth Work of Chandil Left Main Canal from K.M. 32.392 to 40.840. The letter of intent was issued on 11.10.1999 and agreement with the petitionercompany was executed on 05.11.1999. The Mechanical Carriage Item was sanctioned on the basis of (Current Schedule Rates) CSR1999 and all payments were made from the year 19992004 on CSR1999 basis. In terms of letter dated 30.07.1998 providing price escalation which was made part of the Notice Inviting Tender, on 19.09.2001 a proposal was directed to be sent and the Chief Engineer was directed to resolve the matter.

(3.) The respondentState of Jharkhand took a plea that no payment contrary to the terms of agreement dated 05.11.1999, can be made to the petitioner. The letter dated 30.07.1998 was recalled by the Department vide letter dated 18.08.1999 and thus, no price escalation can be awarded to the petitioner. The agreement dated 05.11.1999 executed with the petitioner does not contain a provision for price escalation. The Chief Engineer recommended payment of 90% escalation without approval of the department and therefore, the matter was referred to the Vigilance Bureau. The part payment of price escalation made on the order of Chief Engineer was without any approval of the competent authority and thus, the illegal part payment cannot be a ground for seeking further payment.