M/S.V.R.Nirman PVT.LTD. vs. The Union Of INDIA

Facts

The petitioner, M/s. V.R. Nirman Pvt. Ltd., filed a writ petition challenging the respondents' inaction in implementing an Arbitral Award dated October 29, 2021, and releasing a GST amount of Rs. 17,67,378/-. The petitioner had undertaken construction work for the International Student Hostel for Acharya Nagarjuna University. They claimed to have paid all statutory dues, including GST as per the contractual agreement, to the Government of India/CPW Department, amounting to Rs. 17,67,378/-, which was not reimbursed. Following an arbitration, an award was passed directing reimbursement of the amount paid by the petitioner along with interest. The petitioner contended that the authorities failed to implement the award and release the GST amount, prompting the writ petition. The respondents, represented by the Union of India, filed a counter-affidavit. The Court noted that the petitioner's claim for GST was rejected by the authorities, as evidenced by an exhibit in the counter-affidavit dated April 17, 2023.

Held

The Court held that the writ petition, seeking implementation of an Arbitral Award, could not be entertained in exercise of jurisdiction under Article 226 of the Constitution of India. The Court noted that while the petitioner referred to a representation dated February 25, 2022, which they claimed was not considered, the material filed with the respondents' counter-affidavit, specifically Exhibit R18 dated April 17, 2023, indicated that the petitioner's claim towards the GST amount of Rs. 17,68,378/- had been rejected. Therefore, given that the primary prayer was for the implementation of an Arbitral Award and the claim had been rejected by the authorities, no relief could be granted as prayed for in the writ petition. The Court dismissed the writ petition, advising the petitioner to pursue other available remedies in accordance with the law. The issue of whether the petitioner's representation was considered was rendered moot by the rejection of the claim and the Court's decision on the maintainability of the writ petition for enforcing an arbitral award.

Key Issues

1. Whether the action of the respondents in not implementing the Arbitral Award dated October 29, 2021, and releasing the GST amount of Rs. 17,67,378/- without considering the petitioner's representation dated February 25, 2022, is illegal, unfair, and arbitrary, warranting a direction for payment with interest under Article 226 of the Constitution of India. Petitioner's Arguments: The petitioner argued that they had paid GST amounting to Rs. 17,67,378/- as per the contractual agreement, which was not reimbursed. An Arbitral Award directed reimbursement of this amount with interest. The respondents' failure to implement the award and release the GST amount constituted illegal and arbitrary action. The petitioner sought implementation of the award and payment of the GST amount with interest. Respondents' Arguments: The respondents, through their counsel, stated that a detailed counter-affidavit had been filed. They also pointed out that the petitioner's claim towards the GST amount of Rs. 17,68,378/- was rejected by the authorities, as indicated by Exhibit R18 dated April 17, 2023, filed with the counter-affidavit. The respondents contended that a writ petition under Article 226 of the Constitution of India was not the appropriate forum for enforcing an Arbitral Award.