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Writ Of Mandamus Can Be Issued In Contractual Matters Only When Outstanding Payments Are Admitted, Not Otherwise: Allahabad HC
Upasna Agrawal
24 Jan 2025 6:51 AM
The Allahabad High Court has held that writ jurisdiction cannot be invoked to enter contractual unless exceptional circumstances are present, which include respondents agreeing to the outstanding dues. It held that a writ of mandamus can be issued in such cases. In brief, the Petitioner won the contract to construct a residence under the Basic Services to the Urban Poor Yojana at...
The Allahabad High Court has held that writ jurisdiction cannot be invoked to enter contractual unless exceptional circumstances are present, which include respondents agreeing to the outstanding dues. It held that a writ of mandamus can be issued in such cases.
In brief, the Petitioner won the contract to construct a residence under the Basic Services to the Urban Poor Yojana at Kishanpur, Kanpur Nagar, under 'Jawaharlal Nehru National Urban Renewal Mission'. The Petitioner completed the work within the stipulated time, and possession was handed over.
Thereafter, the concerned authority passed bills amounting to Rs.15,81,540/-. Petitioner was asked to carry out certain work, which were completed. However, the bills remained pending.
The petitioner approached the High Court under Article 226 of the Constitution of India, seeking payment of the dues on the grounds that financial constraints cannot be grounds to deny payment for the work already done.
Per contra, respondent authorities argued that a certain amount was being retained on the grounds of shortcomings in the petitioner's work.
The Court relied on M/S Bio-Tech System v. State Of U.P. and Others, where a coordinate bench of the Allahabad High Court had held that a civil suit is a remedy for enforcement of civil rights and liabilities arising out of a contract and not a writ petition under Article 226 of the Constitution of India.
Further, relying on the judgment of the Supreme Court in Kerala SEB v. Kurien E. Kalathil, Orissa AgroIndustries Corpn. Ltd. v. Bharati Industries and Union of India v. PunaHinda, the bench of Justice Shekhar B. Saraf and Justice Vipin Chandra Dixit held:
“in areas of contractual disputes, parties have to approach the civil courts or go for arbitration (if provided for). The writ court would only in exceptional circumstances, when the outstanding payments are admitted by the respondents, enter into the arena and pass a writ of mandamus and in no other case.”
Accordingly, the writ petition was dismissed.
Case Title: M/S Annapurna Construction Co. vs. State Of Uttar Pradesh And Others 2025 LiveLaw (AB) 30 [Writ C 32144 of 2021]
Case citation : 2025 LiveLaw (AB) 30