SUPREME INFRASTRUCTURE INDIA LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ petition been preferred to challenge the termination of the contract (Agreement No. 01-NCB/2012-13 dated 20.07.2012) for the work of widening to intermediate lane and improvement of Sisai-Basia Road from Km 0.0 to 37.775 issued by the Chief Engineer (Communication), Road Construction Department, Jharkhand (Annexure-16). Pursuant thereto, security deposit also stood forfeited to the Government. The impugned letter also refers to the communication of Superintending Engineer (LWE), MoRTH & H, New Delhi vide letter no. NH- 12014/411/2010/JH/LWE dated 18.04.2016 and Secretary, Road Construction Department, Jharkhand, Ranchi Letter No. 2586(S) dated 25.04.2016. Annexure-15 is communication of the Superintending Engineer (LWE), Ministry of Road Transport and Highways, Government of India requesting the Principal Secretary, Road Construction Department, Government of India to take necessary action in the matter of proposal for termination of the Contract Agreement of the petitioner in relation to the same work. This also been challenged by the petitioner as admittedly, the work in question is sponsored by the Ministry of Road Transport and Highways, Government of India.

(2.) However, it is pertinent to notice here that the Agreement itself been executed between the petitioner and the Respondent No. 6 - Executive Engineer, Road Division, Gumla, Road Construction Department, Gumla. It is further pertinent to notice here that on 03.05.2016 when the matter was taken up for the first time, while granting time to the Respondent State and Union of India, it was observed that pendency of the writ application would not preclude the parties from going to an alternative resolution of the dispute. It was also observed that any forfeiture made pursuant to the impugned order, would be subject to the outcome of the writ petition.

(3.) Incidentally, during pendency of the writ application, the Respondent Department issued a e-tender bearing Reference No. RCD/Gumla (LWE)/448 dated 20.05.2016 for award of "Remaining Work of Strengthening and Widening of Sisai- Basia Road from K.M. 0.00 to 37.775 (under LWE Scheme) and also (Widening to Intermediate Lane and Improvement of Sisai-Basia Road from K.M. 0.000 to 37.775 K.M.) ". This was assailed by the petitioner in I.A. No. 3442/2016. By order dated 03.06.2016 passed by a Coordinate Bench of this Court, further process of e-tender Reference was stayed. During course of the proceedings thereafter, parties were directed to explore the possibilities for referring the matter for arbitration and suggest choice of the names of the Learned Arbitrator. The Respondent-Union of India was asked to furnish its response as well. WPC 2852/2016