High Court Jharkhand High Court

Gajo Saha vs State Of Jharkhand And Ors. on 13 December, 2001

Jharkhand High Court
Gajo Saha vs State Of Jharkhand And Ors. on 13 December, 2001
Bench: M Eqbal

ORDER

The Court

1. Heard the parties.

2. Petitioner has challenged the order as contained in letter No. 609 dated 26.11.2001 issued under the signature of Executive Engineer, Sichai Pramandal, Littipara, Pakur, whereby petitioner’s agreement for construction of Check Dam (C.D.) of Chain No. 826 of the Main Canal on Gumani River under the Gumani Barrage Scheme/project has been terminated.

3. I have come across several cases where the termination cancellation, modification of the agreement executed by the various departments of the Government for construction of Dam, Canal, road, sewerage are challenged by invoking writ jurisdiction of this Court. Admittedly these types of contracts are not statutory contract rather the Government in exercise of their executive function enters into such contract. These contracts normally contain various clauses i.e. consequences of termination/cancellation of the contract remedy, in case dispute arises with regard to the validity and executability of contract. Such contracts which have got no statutory force, can not be amenable to writ jurisdiction under Article 226 of the Constitution of India. This question has been set at rest by the Supreme Court in the case of Mahabir Auto Stores and Ors. v. Indian Oil Corporation and Ors., (1990) 3 SCC 752.

4. In the Instant case, the petitioner has annexed a copy of the agreement as Annexure 2 to the writ application. This agreement shows various terms and conditions including remedy for claiming compensation in case of termination or cancellation of contract and further in case of dispute, invoking jurisdiction of arbitrator for adjudication of the claim. The Supreme Court in one case has also laid down the law that if the agreement be it a statutory or non-statutory contains Arbitration Clause then the High Court has no jurisdiction to entertain the writ application under Article 226 of the Constitution of India. In this connection reference may be made to the decision rendered by the Supreme Court in the case of Birsa Stone Line Co. Ltd. and Anr. v. Orissa State Electricity Board and Anr., AIR 1976 SC 127.

5. In that view of the matter in my opinion even assuming cancellation or termination of the contract by the respondents exercising their executive power is illegal, petitioner has remedy to claim compensation damages for illegal termination of contract. The non-statutory contract can not be specifically enforced and that too in exercise of the power under Article 226 of the Constitution of India.

6. For all these reasons. I am not inclined to grant any relief to the petitioner in
this writ application, which is accordingly
dismissed.

7. Writ dismissed.