M/S Infra Valley LLP vs. The East Central Railway (Zonal Office)
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The Petitioner, M/S Infra Valley LLP, filed a writ petition seeking directions against Respondent No. 2 (Chief Engineer/Con/Ganga Bridge, East Central Railway) to pay outstanding dues of approximately Rs. 55 lakhs for work done on the "Construction of Super Structure of Viaduct at South approach of Patna Ganga Bridge" under Tender no-ECR-CAO-C-S-ETEN-06-17-18. The Petitioner also sought directions to prevent Respondent No. 5 (M/S Rawatsons Engineers Pvt. Ltd.) from receiving further payments until the Petitioner's dues were settled, and for an inquiry into alleged forged bills and GST-paid materials being diverted. The Petitioner claimed to have executed work on behalf of Respondent No. 5, who was the main contractor with Respondent No. 2. The Railways (Respondents 1-4) opposed the petition, arguing there was no privity of contract between them and the Petitioner, and that the Petitioner's recourse was against Respondent No. 5.
Held
The Court held that there was no privity of contract between the Petitioner and the Respondent-Railways, nor was there any tripartite agreement that obligated Respondent No. 2 (Chief Engineer/Con/Ganga Bridge, East Central Railway) to pay the Petitioner for the work done. The Petitioner was found to be a sub-contractor under Respondent No. 5. Consequently, the Court found no merit in the writ petition warranting interference. The Petitioner's grievance regarding non-payment of amounts for work done could only be pursued against Respondent No. 5, not against the Respondent-Railways. The Court dismissed the writ petition, leaving it open to the Petitioner to avail legal remedies available under law before an appropriate forum. No specific GST provisions were discussed or relied upon in the judgment.
Key Issues
1. Whether the Respondent-Railways can be directed to make payment of outstanding dues to the Petitioner for work done, despite the absence of a direct contract between them, under Section 73 of the Indian Contract Act, 1872, and principles of natural justice? Petitioner's arguments: The Petitioner contended that Respondent No. 2, as the employer, should direct Respondent No. 5 to pay the admitted outstanding dues, or pay them directly. They also sought an inquiry into alleged fraudulent practices by Respondent No. 5 regarding forged bills and GST-paid materials. The Petitioner relied on the fact that they had completed the work and submitted bills, facing financial hardship due to non-payment. Revenue/State's arguments: The Respondent-Railways argued that the writ petition was not maintainable as there was no privity of contract between the Petitioner and the Railways. They stated that the contract was with Respondent No. 5, and payments were being made to Respondent No. 5 as per the contract. The Railways contended that any grievance the Petitioner had was against Respondent No. 5, not the Railways.
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Cause title — parties, addresses and appearances
ORAL ORDER 12 16-09-2025 Heard learned counsel for the parties.
The present writ petition has been filed for the following relief(s):- “i) For issuance of a direction to the Respondent-2 to direct the 2/5 Respondent 5 to make the payment of admitted outstanding dues amounting to Rs. 55 lakhs (approx.) to the Petitioner against for the work done by him in the project pertaining to the Tender no-ECR-CAO-C-S-ETEN-06- 17-18 in Two Packet System for the work of "Construction of Super Structure of Viaduct at South approach of Patna Ganga Bridge" in which Respondent-2 is the employer or the Respondent-2 may be directed to make payment to the Petitioner against the admitted dues for the work done by him. i) For direction to the Respondent-2 to not to continue and release any payment to M/S Rawatsons Engineers Pvt. Ltd. pertaining to any of the dues or underlying security deposit or any other work being in continuation until the outstanding dues of the Petitioner illegally pocketed by Respondent- 5 is paid with compensation of appreciation of interest. iii) For a direction to the Respondent- 1to enquire as to under what circumstances
the materials purchased by the Petitioner with GST paid over them has been paid to the Respondent-5 on forged bills without any bonafide purchase bills of civil materials viz. TMT, Concrete, Cement, Ready Mix Concrete, etc. by them.”
It is the case of the petitioner that the Respondent No. 5 along with Respondent No. 6 have entered into a work 3/5 contract for the purpose of construction of the Super Structure of Viaduct at South Approach of Patna Ganga Bridge with the Respondent No. 2 (the Chief Engineer/Con/Ganga Bridge, East Central Railway (Construction), Mahendrughat, Patna). The petitioner has executed the work on behalf of the Respondent No.
Learned counsel submits that though the petitioner has completed the work and submitted the bills. However the bills are not being paid as a result of which the petitioner is facing with great financial hardship. Learned counsel has therefore prayed this Hon’ble Court to direct the Respondent No. 2 to clear the bills and make the necessary payments.
Per contra, learned counsel appearing on behalf of the respondents-Railways has vehemently opposed the very maintainability of the present writ petition and stated that there is no privity of contract between the petitioner and the respondents-Railways Company. That the contract is with the Respondent No. 5 Company and the respondent-authority is making the necessary payments to the Respondent No. 5 as and when the bills are submitted. That in case the petitioner has any grievance his remedy is against the Respondent No. 5 and not against the Respondents-Railways. Learned counsel has, therefore, prayed this Hon’ble Court to dismiss the present writ 4/5 petition.
A perusal of the legal notice dated 24.06.2024 (Annexure P/9) issued by the petitioner reveals that the petitioner has issued the said legal notice to the respondents- Railways and also the Respondent No. 5 and at Para 20 of the said legal notice it is stated as under:- “20) That you are further noticed by my client that in case of failure to remit the aforementioned amounts within 30 days of receiving this notice shall constitute a refusal to meet your lawful pecuniary obligations. Consequently, my client shall be constrained to initiate appropriate legal actions against you, not limited to civil but criminal liability and for that appropriate legal remedy through complaint/FIR u/s 406. 420 etc./Commercial suit for recovery of dues and intimation to the concerned GST, PMLA (ED) and Railway authorities for undertaking scrutiny of invoices and books under Economic Offence Wing, to take appropriate legal action against you for contravening the provisions of the agreement and subverting the specifications at your legal expenses.” (Emphasis added)
Having regard to the same it cannot be said that 5/5 there is any privity of contract between the petitioner and the respondents-Railways nor there is any tripartite agreement between the petitioner, respondents-Railways and the Respondent No. 5 which obligates the Respondent No. 2 (the Chief Engineer/Con/Ganga Bridge, East Central Railway (Construction), Mahendrughat, Patna) to pay the amounts for the work done by the petitioner. The petitioner is only a sub- contractor under the Respondent No. 5 and if he has any grievance with regard to the non-payment of the amounts for the work done it can be only against the Respondent No. 5 not against the respondents-Railways.
Having regard to the same, this Court does not find any merit in the present writ petition which warrants any interference by this Court. The writ petition is accordingly dismissed leaving it open to the petitioner to avail the legal remedies as available to him under law before an appropriate forum.
With the above direction, the present writ petition stands dismissed.
Bhardwaj/- (A. Abhishek Reddy , J) U
Reproduced from the public record of the Patna High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.