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Delhi High Court - Orders

Prl Projects And Infrastructure Ltd vs Universal Agency Ramgarg Pvt. Ltd on 26 November, 2020

Author: V. Kameswar Rao

Bench: V. Kameswar Rao

$~7
*     IN THE HIGH COURT OF DELHI AT NEW DELHI
+     OMP(I)(COMM)384/2020, I.A. 11130/2020

      PRL PROJECTS AND INFRASTRUCTURE LTD
                                                                 ..... Petitioner
                         Through:       Mr. Ankit Jain, Adv.

                         versus

      UNIVERSAL AGENCY RAMGARG PVT. LTD.
                                                               ..... Respondent
                         Through:
      CORAM:
      HON'BLE MR. JUSTICE V. KAMESWAR RAO
                   ORDER

% 26.11.2020 This matter is being heard through video-conferencing. I.A. 11130/2020 (for exemption) Exemption allowed subject to all just exceptions. Application stands disposed of.

OMP(I)(COMM)384/2020

1. The present petition has been filed by the petitioner with the following prayers:

"In the aforesaid facts and circumstances, it is most humbly and respectfully prayed that this Hon'ble Court may kindly be pleased to:-
(i) Restrain the respondent from creating any hindrances, of any nature whatsoever, in the execution of the work of "Rehabilitation and Upgrading to 2 lane/ 2 lane with paved shoulders configuration and strengthening of 'Birpur - Bihpur' Section (from KM 0.0 to KM 106.0) NH 106 in the State of Bihar";
(ii) Restrain the respondent from blocking the entry to the site (camp entries) in respect of "Rehabilitation and Upgrading to 2 lane/ 2 lane with paved shoulders configuration and strengthening of 'Birpur - Bihpur' Section (from KM 0.0 to KM 106.0) NH 106 in the State of Bihar'';

(iii) Restrain the respondent from blocking access to or use of any plant or machinery being used at site for carrying out the work at site in respect of "Rehabilitation and Upgrading to 2 lane/ 2 lane with paved shoulders configuration and strengthening of 'Birpur - Bihpur' Section (from KM 0.0 to KM 106.0) NH 106 in the State of Bihar";

(iv) Direct the respondent to ensure the smooth functioning of the work at site in respect of "Rehabilitation and Upgrading to 2 lane/ 2 lane with paved shoulders configuration and strengthening of 'Birpur - Bihpur' Section (from KM 0.0 to KM 106.0) NH 106 in the State of Bihar";

(v) Pass ex-parte interim order in terms of prayer (i) to (iv) above;

(vi) Pass any other or further orders which may deem fit and proper in the facts and circumstances of the case, in favour of the petitioner."

2. Mr. Ankit Jain, learned counsel appearing for the petitioner states that a copy of the petition has been served on the respondent. Despite service there is no appearance for the respondent.

3. Issue notice to the respondent, returnable on March 18, 2021.

4. It is stated by Mr Ankit Jain that the Ministry of Road Transport and Highways had entered into a contract with IL&FS Engineering and Construction Company Ltd. for Rehabilitation and Upgrading to 2 lane / 2 lane with paved shoulders configuration and strengthening of 'Birpur- Bihpur' Section of the National Highway 106 in the State of Bihar.

5. The IL&FS has contracted the work to the petitioner, with regard to Section I and Section III. The respondent had also represented itself to the petitioner for carrying out the work along with the petitioner herein. Accordingly, a Memorandum of Understanding dated September 24, 2019 was executed between the parties herein for carrying out the work. The work was to be executed in equal ratio and the profits and loss arising out of the project had to be shared equally.

6. Mr. Jain states the project being a World Bank Finance Project, by taking suo moto cognizance, the High Court of Judicature at Patna is also overseeing the project and various orders have been passed from time to time.

7. It is his submission, the respondent agreed to invest an amount of Rs.15 Crores till November 2019. However, the respondent had only invested an amount of Rs.1.15 Crores (in cash). According to Mr. Jain, admittedly there is failure in fulfilling the obligations on the part of the respondent. He states that the petitioner has received a letter dated November 02, 2020 from the respondent making of claim for Rs.25.34 Crores from the petitioner. In fact, on November 04, 2020 a meeting was convened by the Executive Engineer of the project to work out the dispute between the parties. It was agreed that the petitioner would give an offer to the respondent regarding the manner in which the amount invested by the respondent would be paid back to the respondent. It was further agreed that in case the proposal of the petitioner is not acceptable to the respondent, the respondent would be at liberty to take legal recourse for recovery of its amount. But in no way the respondent can hinder the progress of the work carrying out at the site and the work would be started in full force w.e.f. November 06, 2020.

8. Mr. Jain states that unfortunately, despite clear understanding between the parties, the respondent has locked the gates preventing the ingress and egress of the workers of the petitioner at the site. In other words, the respondent is creating hindrance for the petitioner to carry out the work.

9. Mr. Jain has drawn my attention to a communication dated November 24, 2020 received from IL&FS calling upon the petitioner to carry out the work in right earnest otherwise, they would be compelled to terminate the contract. He also states that it is under these circumstances, the present petition has been filed in this Court.

10. Mr. Jain also states that there is no order passed by the High Court of Judicature at Patna in suo moto petition restraining the petitioner from carrying out work of the project.

11. Having perused the record and heard Mr. Jain and the fact that no one is present for the respondent, pending notice the respondent, its directors, its employees / workers shall not create any hindrance, including the usage of machinery and material, during the execution of the work of Rehabilitation and Upgrading to 2 lane / 2 lane with paved shoulders configuration and strengthening of 'Birpur-Bihpur' Section of the National Highway 106 in the State of Bihar, being carried out by the petitioner till the next date of hearing.

V. KAMESWAR RAO, J NOVEMBER 26, 2020/aky