2014 (9) TMI 384 - HC - Indian Laws

Appellate court dismisses writ petition for contractual claims, citing maintainability issues and time-barred claim.

GOVT. OF NCT OF DELHI & ORS. Versus NEW VARIETY TENT HOUSE & ANR

GOVT. OF NCT OF DELHI & ORS. Versus NEW VARIETY TENT HOUSE & ANR - TMI Issues Involved:1. Maintainability of writ petition for contractual claims.2. Bar of limitation on the claim.3. Non-payment due to audit objections.4. Comparison with similar cases (e.g., M/s. Punjabi Tent House).5. Public law element in contractual disputes.Issue-wise Detailed Analysis:1. Maintainability of Writ Petition for Contractual Claims:The respondents filed a writ petition seeking payment for services rendered. The appellants contended that the writ petition was not maintainable for contractual claims and that the appropriate remedy was a suit for recovery of money. The court noted that normally, a writ petition under Article 226 is not entertained for enforcing civil liabilities arising out of a breach of contract. The Supreme Court has held that contractual obligations are beyond the zone of judicial review unless there is a public law element involved.2. Bar of Limitation on the Claim:The appellants argued that the claim was barred by limitation as the payments pertained to the period 1999-2000, and the writ petition was filed in 2007. The court observed that under Article 12 of the Limitation Act, the limitation for recovery of hire charges was three years from the date the hire became payable. The respondents' claims were time-barred as there was no acknowledgment of liability within the meaning of Section 18 of the Limitation Act. The court reiterated that extraordinary remedies under the Constitution are not intended to enable the claimant to recover monies barred by limitation.3. Non-payment Due to Audit Objections:The respondents claimed that their payments were withheld due to audit objections. The learned Single Judge found that the Directorate of Education was not justified in withholding payments without conducting any inquiry into the complaints about the quality of work. However, the appellate court noted that the respondents failed to provide substantial evidence to prove that the work orders were placed pursuant to a tender enquiry or that an agreement was executed.4. Comparison with Similar Cases (e.g., M/s. Punjabi Tent House):The respondents argued that their case was similar to that of M/s. Punjabi Tent House, which had been paid after filing a writ petition. The court noted that the respondents waited for more than three years after the decision in the Punjabi Tent House case to file their petition. The court emphasized that a wrong decision in another case cannot constitute a precedent for allowing other time-barred claims.5. Public Law Element in Contractual Disputes:The court examined whether the dispute had a public law element, which could justify the invocation of writ jurisdiction. It was concluded that the present case did not involve any public law element. The Supreme Court has held that a writ petition in contractual matters would be entertained only if there is an element of public interest. The court found no such element in the present case.Conclusion:The appellate court allowed the appeal, setting aside the order dated 23rd March 2010, which had directed the appellants to release the payment to the respondents. The writ petition filed by the respondents was dismissed on the grounds that it was not maintainable for enforcing a contractual claim, especially when the claim was barred by limitation. No order as to costs was made.