HINDUSTAN STEELWORKS CONSTRUCTION LTD Vs. CENTRAL COALFIELDS LTD

JUDGEMENT

(1.) Aggrieved by order dated 06.06.2014 whereby the contract awarded to the petitioner M/s Hindustan Steelworks Construction Ltd. (HSCL) has been terminated, the petitioner has preferred the present writ petition.

(2.) Briefly stated the facts of the case are summarised thus: Pursuant to Notice Inviting Tender (NIT) dated 18.08.2012 for the work of "hiring of HEMM such as shovels, tippers, drills, dosers, graders and water sprinkler etc. for removal of strata including top soil earth, alluvium soil, various rocks, blasted rocks and blast hole drilling in all kinds of strata, excavation, loading, transporting, dumping, spreading and dozing of specified places, haul road maintenance and water spraying on haul road as per instruction of engineer at SDQ1, outsourced patch for a period of one year", the petitioner participated in the tender process and its bid was found most suitable and hence, the same was accepted vide communication contained in letter dated 17.01.2013. Though, the petitioner commenced the work, due to certain reasons it was not completed within the schedule completion period and accordingly, the last measurement was taken on 14.11.2013. The respondentC.C.L vide order dated 24.01.2014 extended the period for completion of work till 25.07.2014. Thereafter, few letters were issued by the respondentC.C.L to the petitionercompany for improving performance and finally, vide letter dated 28.04.2014 the respondentC.C.L threatened penal action. The agreement was terminated vide order dated 06.06.2014, challenging the same the petitionercompany has approached this Court.

(3.) A counteraffidavit has been filed stating that, since the petitioner failed to discharge its obligation under the agreement, the contract was terminated vide order dated 06.06.2014. The petitioner itself admitted that it has removed and transported about 8.20 lacs Cubic Meter of Over Burden till December, 2013 out of the total awarded quantity of 14.99 lacs Cubic Meter. Termination order dated 06.06.2014 does not suffer from irregularity or infirmity. Since the petitioner failed to perform the work under the contract even after extension of time, the agreement was terminated. Sufficient opportunity was granted to the petitioner vide letters dated 20.03.2014, 08.04.2014, 28.04.2014 and 15.05.2014 however, the petitioner did not respond to the same and in terms of Clause 6 of NIT, a penalty of Rs. 4,54,363/ was imposed upon the petitioner upto 14.11.2013. The final measurement would be taken in terms of Clause 8.2 of General Terms and Conditions and the contractor is required to submit interim bill on the basis of the measurement. The petitioner has signed the agreement and after accepting the same it cannot be permitted to retract from the same. Since the petitioner has raised joint bill based on last survey dated 31.03.2014 and since no joint survey has been conducted after 14.11.2013, no further payment has been made to the petitioner. The bill can be raised only on the basis of measured quantity and not on the basis of reported quantity. In these facts the writ petition is resisted by the respondentC.C.L