M/S Best Security Services Thru. Its Proprietor Kuldeep Chaturvedi vs. Union Of INDIA Thru. Its Ministry Of Labour And Employment, Govt. Of INDIA New Delhi And Others
Facts
The petitioner, M/s Best Security Services, a GST-registered firm, filed a writ petition seeking a mandamus to compel respondents to release outstanding dues of Rs. 6,98,090/-. These dues relate to bills dated March 22, 2021, and June 1, 2020, and a security deposit, arising from a tender for manpower supply to Station HQ, Faizabad. The contract was extended for hiring casual laborers and drivers. The petitioner claims to have rectified objections raised previously. However, the respondents have not admitted the claimed amount, and the refund of the security deposit is contingent on such admission. The petitioner's claim stems from a contract.
Held
The Court held that the dispute, which arises out of a contract, cannot be adjudicated under Article 226 of the Constitution of India. The reasoning is that writ jurisdiction is generally not meant for resolving contractual disputes, especially when the amounts claimed are not admitted by the respondents and the refund of security deposit is conditional on such admission. The Court found no occasion for refund of the security deposit until it was admitted by the respondents. Therefore, the High Court declined to entertain the petition on its merits. The ratio decidendi is that contractual disputes, particularly those involving disputed amounts and conditional refunds, are not amenable to writ jurisdiction under Article 226 and require recourse to alternative legal remedies.
Key Issues
1. Whether the High Court, under Article 226 of the Constitution of India, can adjudicate a dispute arising from a contract for the release of outstanding dues and security deposit? Petitioner's contention: The petitioner sought a writ of mandamus to compel the release of outstanding dues and security deposit, implying a belief that the High Court could intervene to ensure payment of contractual obligations, especially after alleged rectification of objections. Respondent's contention: The respondents argued that the dispute arises out of a contract and therefore cannot be adjudicated under Article 226 of the Constitution of India, suggesting that alternative remedies should be pursued.
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Court No. - 2 Case :- WRIT - C No. - 300 of 2023 Petitioner :- M/S Best Security Services Thru. Its Proprietor Kuldeep Chaturvedi Respondent :- Union Of India Thru. Its Ministry Of Labour And Employment, Govt. Of India New Delhi And Others Counsel for Petitioner :- Rudra Kumar Tiwari Counsel for Respondent :- A.S.G.I.,Sanjeev Singh Hon'ble Mrs. Sangeeta Chandra,J.
Hon'ble Manish Kumar,J.
Heard learned counsel for the petitioner, Shri Sanjeev Singh, learned counsel for Respondent No.3 and learned Standing counsel appears on behalf of State respondent.
The present writ petition has been filed with the following main prayers: "(i) To issue a writ order or direction in the nature of mandamus commanding the Opposite Party No.2 and 3 to release the petitioner's outstanding dues amounting Rs.6,98,090/- towards bill dated 22.03.2021, 01.06.2020 as well as the security deposit, arising out of the tender bearing no.CBF/ Sanitation/ Station HQ/2019-20/21 dated 02.07.2019, within a short reasonable period to be prescribed by this Hon'ble court in the interest of justice."
The petitioner is running security services and petitioner's firm has duly been registered in the Goods and Services Tax
The judgment continues below.
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