NCC LTD. Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) The present writ petition has been filed for a direction upon the respondents to immediately and forthwith grant extension of time till 28.02.2011 in connection with Agreement No. 01 F 2/2006-07 for the work of construction of Mega Sports Complex Package-II and consequently pay the pending dues of the petitioner amounting to Rs. 19.68 Crores.

(2.) The case of the petitioner as stated in the writ petition is that the respondent Building Construction Department invited bids for construction of Mega Sports Complex Package-II. The petitioner participated in the bid process and finally it was awarded the work and agreement to that effect was executed being Agreement No. 01 F 2/2006- 07. The date of commencement of the work was 29.05.2006 and it was initially required to be completed within a period of 18 months i.e 28.11.2007, but the time was subsequently extended till 30.01.2009. The petitioner further applied for extension of time till 28.02010 vide application dated 05.11.2009, but subsequently vide letter dated 21.12009, it brought to the notice of the respondents that the time for completion of work may be extended till 28.02011 instead of 28.02010. Subsequently by various letters to the respondent authorities, the petitioner sought extension of the time and also for refund of the liquidated damages illegally deducted from its bills for want of written extension of time. The stadium was finally taken over by the department on 210.2010 without any demur and the national games were successfully organized in February 2011. It is further submitted that even after handing over the construction, the respondents neither extended time nor made payment of dues. The executive engineer informed the petitioner vide letter no. 59/Ranchi dated 20.01.2017 that vide letter no. 594 (Anu) dated 24.11.2014, the proposal for extension of time has already been forwarded to the Superintending Engineer, Chhotanagpur Anchal., However, no action was taken thereafter. The petitioner also served a legal notice to the respondents dated 23.06.2017 demanding an amount of Rs. 9.68 crores towards extra work, Rs. 3.60 crores towards retention of money, Rs. 4.90 crores towards withholding money un-contractually and Rs. 1.50 crores towards the Final RA Bill. However, the petitioner has neither been granted extension of time nor paid the due amount, which gives rise to the filing of the present writ petition.

(3.) The learned Sr. counsel appearing on behalf of the petitioner submits that the respondents are not justified in keeping the application for extension of time in abeyance for indefinite period, particularly when the respondents have already taken possession of all the buildings, structures etc. without any demur and defect. It is further submitted that the respondents cannot sit tight over the application for extension of time without any justifiable cause that too when the defect liability period for the project has also ended thereby causing grave loss, damage and injury to the petitioner. It is claimed by the petitioner that from the very beginning, the petitioner diligently mobilized the manpower and machineries for executing work in terms of the contract, but on account of reasons beyond its control, the work prolonged. The petitioner was also ordered to execute extra works which were not included in the agreement or the Bill of Quantity which was also one of the reasons for delay in completion of work. It is further submitted that similarly situated another company i.e M/s Ling Simplex was also entrusted the work of construction of other packages of Mega Sports Complex and the time extension sought by it has been granted. Moreover, all its dues have also been paid.