[Article 226] Writ Courts Cannot Assess Quantum Of Damages Or Compensation, Requires Adjudication By Appropriate Forum: Jharkhand HC

The Jharkhand High Court has held that a writ court operating under Article 226 of the Constitution of India cannot assess the quantum of damage or compensation, as such an assessment requires adjudication through evidence, which is the jurisdiction of another appropriate forum.

The division bench comprising Acting Chief Justice Sujit Narayan Prasad and Justice Arun Kumar Rai observed, “This Court is of the view that the writ court sitting under Article 226 of the Constitution of India cannot assess the quantum of damage or compensation since the same requires adjudication by leading evidence for which the appropriate forum is else.”

The case arose after the petitioner was debarred from participating in future bids due to a criminal case instituted following an incident on the day of bid opening, where some nuisance was created. The petitioner claimed that the debarment, which lasted about eight months, was illegal and deprived him of the opportunity to participate in bids, entitling him to compensation.

The petitioner sought a Writ of Certiorari to quash the debarment order passed by the Municipal Commissioner, Municipal Corporation Hazaribagh, arguing that the mere filing of a First Information Report against a contractor does not justify blacklisting, especially without adhering to the principles of natural justice and for an indefinite period.

The court, however, dismissed the writ petition, holding that the issue of compensation and damage assessment lies outside the jurisdiction of the writ court under Article 226.

Case Title: M/s. Deepak Construction V. The State of Jharkhand

LL Citation: 2024 LiveLaw (Jha) 139

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