Rajesh Shankar, J. - (1.) The present writ petition has been filed for quashing letter no.CUJ/P122 dated 21.12.2016 (Annexure-8 to the writ petition) issued under the signature of the Registrar (I/C), Central University of Jharkhand (in short 'CUJ'), whereby it has been informed that pending payment of the petitioner has been withheld as per the direction of the Central Bureau of Investigation, Anti-Corruption Bureau, Ranchi and the payment will be considered once "No objection for release of payment" is received from it. It is also prayed for issuance of direction upon the respondents, particularly, respondent no. 2 to release the outstanding amount of Rs. 11.24 crores to the petitioner against the work done by it along with penal and compensatory interest @ 18% per annum with effect from the date on which the said amount fell due.
(2.) The factual background of the case, as stated in the writ petition, is that pursuant to the Notice Inviting Tender (NIT) No. CUJ/OSD(Project)/2011-12/1012 dated 210.2011 issued by the CUJ, the petitioner got empanelled in Group-C category. The empanelled contractors were advised to submit their rates for undertaking construction works (Civil and Electrical) based on Delhi Schedule of Rates of the year 2007 (DSR-2007). The petitioner quoted the rate 58% above the DSR-2007. However, it was asked by the respondent-University to reduce the rate 54% above the DSR-2007, which was accepted by the petitioner. Thus, two separate agreements were executed between the CUJ and the petitioner for execution of construction work of (288+288) i.e 576 number of 3 seated rooms of U.G Boys' Hostel along with dining hall and other allied structures of the CUJ at its permanent campus in Mauja Cheri/Manatu, at a total agreement value of Rs. 20.00 Crores (Rs. 10.00 Crores for each agreement). The entire work was completed with strict adherence to all the quality norms within the scheduled time and the engineers inspected the building so constructed and recorded their satisfaction in the site order book. The building was also maintained up to Defect Liability Period, and the petitioner continuously requested the respondent-CUJ to take over the possession of the building but it failed to take over the possession of the same. Subsequently, an FIR was lodged by the S.P/HOB, CBI, ACB Ranchi on 30.10.2014 alleging, inter alia, that the then ViceChancellor and other employees of CUJ had connived with contractors/firms/companies in respect of allotment of work for construction of building and infrastructure at the permanent campus of CUJ at Cheri-Manatu Ranchi. It was further alleged that works of similar nature were allotted to different categories of contractors at different rates which caused wrongful loss to CUJ and correspondingly wrongful gain to the accused persons. In the said case, charge-sheet has also been submitted alleging that the contractor in Group-D was awarded the work at 49% above DSR-2007, whereas similar works were awarded to the contractors in Group-C at 54% above DSR-2007 and to the contractors in Group-B at 56% above DSR-2007 which caused a total loss of Rs. 3,56,66,439/- to the CUJ. It has been alleged against the petitioner that an amount of Rs. 43,52,503/- has been paid in excess to it. The petitioner received a letter dated 21.12016 from the respondent-CUJ through its Registrar(I/C) whereby it has been informed that, on the direction of the CBI, ACB, Ranchi, the pending payment of the petitioner has been withheld and the same will be processed once 'No Objection' is received from the CBI.
(3.) The learned senior counsel for the petitioner submits that non-release of the payment has broken the financial backbone of the petitioner inasmuch as the petitioner has been facing tremendous pressure from the market creditors and the bankers as the petitioner had purchased materials from the suppliers on credit and had taken loan from the bankers for working capital. It is also submitted that the release of payment against the work done has to be made as per contractual stipulations or on the principle of "Quantum Meruit". The payment due to the petitioner against the work done cannot be withheld merely because the CBI has lodged a prosecution against the petitioner and others on the allegation of causing wrongful loss to CUJ by quoting a higher rate than those quoted by other contractors empanelled in different groups. It is also submitted that withholding of payment due to the petitioner on the allegation levelled against it is not under due process of law, as neither the stipulation of the contract under which the work was executed, prohibits payment on such ground nor this issue has been adjudicated by any competent court of law. The CBI has no privity of contract entered between the petitioner and the CUJ. Therefore, CUJ cannot avoid payment under the agreements citing excuse of purported direction of the CBI to withhold payment of the petitioner. The respondent-CUJ or even the CBI does not dispute that the works under the agreements have been completed by the petitioner within the stipulated time frame under the supervision and to the satisfaction of the engineers of CUJ and a certificate of completion has also been issued by the CUJ in favour of the petitioner to that effect. The payment due to the petitioner cannot be postponed indefinitely as the criminal prosecution lodged by the CBI may take a long time in the court of law to be adjudicated and it may have to travel to the higher forums to attain its finality. The petitioner has also served a legal notice dated 26.09.2017 on the respondent- CUJ, but till date its due payment has not been released by the respondent no. 2.;