M/S R.S.Pandey & Co v. The Union Of India

“24.1. If any dispute or difference of any kind whatsoever shall arises in connection with or arising out of this Contract or the execution of Works or maintenance of the Works commencement or during the progress of Works termination, abandonment or breach of the Contract, it shall, in the first instance, be referred for settlement the competent authority, described along with their powers in the Contract Data, above the rank of Patna High Court CWJC No.8160 of 2011 (8) dt.10-12-2013 2 shall, Engineer. The competent authority shall, within a period of forty-five days after being requested in writing by the Contractor to do so, convey his decision to the Contractor. Such decision in respect of every matter so referred review as subject hereinafter provided, be final and binding upon the Contractor. In case the Works is already in progress, the Contractor shall proceed with the execution of the Works, including maintenance thereof, pending receipt of the decision of the competent authority as aforesaid, with all due diligence.

24.2. Either party will have the right of appeal, against the decision of the competent the Standing Empowered authority, Committee if the amount appealed against exceeds rupees one lakh. 24.3. The composition of the Empowered Standing Committee will be : I. One official member Chairman of the Standing Empowered Committee, not below the rank of Additional Secretary to the State Government; II. One official member not below the rank of chief engineer; and III. One non-official member who will be technical expert of Chief Engineer‟s level selected by the Contractor from a panel of three persons given Employer.” to him by Learned counsel for the petitioner submits that the petitioner has already filed a representation by way of request for settling the dispute to the Chief Engineer on 14.3.2013, vide Annexure-2/1 of the reply to the counter affidavit. He submits that, in terms of the said clause 24.1 and 24.2, it is only after the decision of the competent authority that the petitioner can Patna High Court CWJC No.8160 of 2011 (8) dt.10-12-2013 3 approach the Empowered Standing Committee, if any.

He submits that the competent authority, in terms of clause 24.1, has to give his decision within 45 days after filing of the representation. Hence, since petitioner has already approached before the competent authority, his application should have been considered and final decision should have been communicated to him positively within 45 days from the date of filing of the same, which has not been done. Learned counsel for the respondents submits that the same may be done even today and for this purpose petitioner may be given liberty to file a fresh request for decision on the dispute being raised by him. This writ application is accordingly disposed of with liberty to the petitioner to file a fresh application before the respondent Chief Engineer, Central Public Works Department within two weeks from today. As and when the Chief Engineer receives the said request on behalf of the petitioner, he shall take a decision and communicate the same to the petitioner positively within 45 days thereafter.

In case, he is not the competent authority, then he shall transfer the request of the petitioner to the competent authority, who shall also take a decision and communicate it to the petitioner within 45 days thereafter. If the Patna High Court CWJC No.8160 of 2011 (8) dt.10-12-2013 4 petitioner is aggrieved he will be at liberty to move the Secretary of the Central Public works Department for referring the matter to the Empowered Standing Committee which shall be constituted, if already not in existence, positively within two weeks from the date of receipt of the request from the petitioner. The matter shall be thereafter taken up by the Standing Empowered Committee which shall take steps to decide the matter strictly in terms of the relevant clauses of the SBD and at the earliest. (Jayanandan Singh, J) Arvind/-