Union of India & Ors. Vs Puna Hinda (Supreme Court of India)
The Supreme Court allowed an appeal challenging the Gauhati High Court’s orders directing payment to a contractor based on a Final Joint Survey/Measurement Report dated 24 October 2013. The High Court had quashed communications dated 27 August 2015 and 21 October 2015, directed preparation of a revised Detailed Project Report (DPR) based on the Joint Survey Report, and ordered payment of the claimed amount. The Division Bench affirmed the decision, observing that a fresh survey was not feasible after five monsoons.
The dispute arose from a contract for construction and improvement of a road under the Special Accelerated Rural Development Programme (SARDP). The contractor claimed additional amounts based on the Joint Survey Report after completion of the formation work. The authorities, however, disputed the claim, stating that the Joint Survey Report had not been approved by the competent authority, that the claimed extra work exceeded the contractual scope, and that payments due under the contract had already been made. The authorities also pointed out that the contract contained an arbitration clause for resolving disputes.
Before the Supreme Court, the appellants argued that the dispute involved serious questions of fact concerning measurements, quantities of work executed, and the authenticity of the Joint Survey Report. They relied on earlier Supreme Court decisions to contend that disputes arising out of contractual obligations, particularly monetary claims involving disputed facts, should not ordinarily be adjudicated in writ proceedings under Article 226 where an arbitration mechanism is available.
