2018 (1) TMI 919

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....ndamus commanding the opposite parties no. 3 and 4 to make payment of outstanding dues of service tax for the period of 200506 and 200607 and arrears of bills to the petitioner firm to enable the petitioner to deposit the dues of service tax". 3. Admittedly, the alleged dues i.e arrears of bills etc are nothing but a part of alleged contract executed by petitioner with respondents no. 3 & 4 i.e Chairman, Lucknow Development Authority and Security Officer, Lucknow Development Authority respectively. 4. When questioned as to how for realization of money pursuant to a contractual work writ petition under Article 226 is maintainable, learned counsel for petitioner placed reliance on Apex Court's decision in Hindustan Sugar Mills, M/s. Vs....

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....llowed and observation that Central Government was not bound to pay amount of sales tax legally was deleted and Court said as under: "Where there is such a clause the Central Government is bound to pay the amount of sales tax on the freight component of the price and we hope and trust that the Central Government will honour its legal obligation and not drive the appellant to file a suit for recovery of the amount of such sales tax. We hopefully expect that the Central Government will not try to shirk its legal obligation by resorting to any legal technicalities for we maintain that in a democratic society governed by the rule of law, it is the duty of the State to do what is fair and just to the citizen and the state should not seek to de....

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....enable it to discharge its functions. Disputes arising out of the terms of such contracts or alleged breaches have to be settled by the ordinary principles of law of contract. The fact that one of the parties to the agreement is a statutory or public body will not by itself affect the principles to be applied. The disputes about the meaning of a covenant in a contract or its enforceability have to be determined according to the usual principles of the Contract Act. Every act of a statutory body need not necessarily involve an exercise of statutory power. Statutory bodies have power to contract or deal with property like private parties. Such activities may not raise any issue of public law. When it is not shown that contract is statutory an....

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....t of dues under a contract for supply of goods, it would neither be prudent nor judicious for this Court, in exercise of its jurisdiction under Article 226 of the Constitution, to grant relief, which is in substance, is a prayer for a money decree. These matters, it must be emphasized, are not those relating to statutory contracts but are purely nonstatutory contracts. Whether work has been satisfactorily performed, whether the rates which had been quoted are in accordance with the terms of the contract, whether the goods were of a quality as mandated, and above all, whether the claim is within limitation or otherwise, are issues which cannot appropriately be adjudicated upon under Article 226 of the Constitution." 11. The same view has b....