Article 226 - Writ Of Mandamus Virtually Granting Specific Performance Of Contract/Work Order Cannot Be Issued: Supreme Court

The Supreme Court observed that a writ of mandamus cannot be issued virtually granting specific performance of the contract/work order petition.

In this case, challenging the cancellation of work order (for purchasing desks, benches, almirahs and tables) awarded by the Municipal Corporation Gondia, Divi Works & Suppliers approached the Bombay High Court. The High Court has set aside the action of the Municipal Council and held that the writ petitioner is entitled to make the supply in pursuance of the work order and that it is entitled to the payments as per the terms of the work order. 

In appeal, the Apex Court bench noticed that the High Court has issued a writ of mandamus virtually granting the relief of specific performance of the contract/work order. Taking note of the factual aspects, the bench said:

There are disputed questions of fact such as whether in fact the goods were manufactured as per the specifications or not. Nothing was on record before the High Court that goods were in fact and actually manufactured by the original writ petitioner No.1, as per the specifications and the requirements of the Council and as per the work order. In absence of any evidence and material on record and there being disputed questions of facts the High Court ought not to have passed the impugned judgment and order directing the Council to continue the work order and accept the goods from the original writ petitioner No.1 and to make the payments as per the work order. Even otherwise, no writ of mandamus could have been issued virtually granting the writ for specific performance of the contract/work order in a writ petition under Article 226 of the Constitution of India. The original writ petitioners ought to have been relegated to file a civil suit for appropriate relief of losses/damages, if any, sustained.

The bench further noted that the cancellation order was was necessitated due to Covid­19 Pandemic and there was a lockdown and the schools were closed and that the Council had no sufficient funds.

Observing thus, the bench set aside the High Court judgment.

Case: Municipal Corporation Gondia vs Divi Works & Suppliers HUF |  CA 1538 of 2022 | 28 Feb 2022

Coram: Justices MR Shah and BV Nagarathna

Citation : 2022 LiveLaw (SC) 225

Counsel: Adv Gaurav Agrawal for appellant,  Sr. Adv R.L. Khapre for respondent

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