Privity of contract key in Kochi Metro dispute; DMRC not liable.

The court held that there was no privity of contract between DMRC and the petitioners, leading to the dismissal of the writ petitions seeking payment for work done on the Kochi Metro Rail Project. It was determined that DMRC was not liable for payments to the petitioners, emphasizing that contractual disputes should be resolved through statutory and common law remedies rather than under Article 226 of the Constitution of India. The judgment underscored that direct payments should be made by EIEL unless accepted by DMRC, ultimately denying the payment claim.

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Issues:
1. Privity of contract between DMRC and petitioners for payment disputes.
2. Maintainability of writ petitions under Article 226 for monetary claims.
3. Liability of DMRC for payments due to petitioners despite insolvency proceedings.

Analysis:
1. The petitioners argued that DMRC is obligated to ensure payments for work done and materials supplied for the Kochi Metro Rail Project, despite agreements being with EIEL. They relied on past direct payments by DMRC to Era-Ranken JV. DMRC contended no privity of contract with petitioners and that monetary claims cannot be addressed under Article 226. The court found DMRC not liable as per agreements, stating that payments should be made by EIEL unless direct payment requests are accepted by DMRC.

2. DMRC reiterated the lack of privity of contract and the inadmissibility of monetary claims under Article 226. Citing previous judgments, DMRC argued that contractual disputes cannot be resolved through writ petitions. Petitioners contended that the bills are undisputed, making the writ petitions maintainable. The court agreed with DMRC, emphasizing that contractual disputes fall outside the purview of Article 226, dismissing the prayer for payment.

3. Despite the insolvency of EIEL, petitioners sought payment based on the limited role of EIEL in the joint venture agreement and past direct payments by DMRC. The court upheld the legal position that DMRC is not liable for payments to petitioners due to EIEL's default. It highlighted that statutory and common law remedies must be pursued for recovery, dismissing the writ petitions and denying the payment claim.

In conclusion, the court found no privity of contract between DMRC and the petitioners, leading to the dismissal of the writ petitions seeking payment. The judgment emphasized the legal principle that contractual disputes, even in public utility projects, must be resolved through statutory and common law remedies rather than under Article 226 of the Constitution of India.

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