Case Note & Summary
The matter arose from a writ petition filed under Article 226 of the Constitution of India by a construction company against the Karnataka Slum Development Board and others. The petitioner had been awarded three work orders for constructing dwelling units for slum dwellers in Bengaluru. The agreed completion period was 24 months, but the work remained incomplete. The Board granted extensions twice – first for 654 days on 07-03-2018 and then for 365 days on 13-07-2020. Eventually, the contract was terminated on 27-07-2021. The petitioner submitted representations on 06-09-2021 and 07-09-2021 seeking six months’ further extension to complete the work. After earlier writ petitions were disposed of with a direction to consider the representations, the Board rejected them by the impugned order dated 17-10-2022. The petitioner contended that the delay was attributable to the Board’s failure to hand over sites in time and that it was ready to complete the work at a lower cost than a fresh tender. The respondent Board argued that despite multiple extensions, the petitioner failed to perform, and the termination order remained unchallenged; a fresh tender had already been issued. The court heard submissions and reserved judgment on 12-01-2024, pronouncing it on 23-01-2024. The available judgment text ends abruptly during the court’s analysis, and the final decision is not ascertainable from the provided excerpt.
Issue of Consideration
Whether the impugned order rejecting the petitioner's representation for extension of time to complete construction work was arbitrary and illegal; whether the petitioner was entitled to a further extension of time despite earlier termination of contract and fresh tender issuance
Case Details
2024 LawText (KAR) (01) 6
Writ Petition No. 23054 of 2022 (GM - SLUM)
D.R. Ravishankar, Saravana S., Spoorthy Hegde, K. Shashikiran Shetty, B.B. Patil
Aishwaryagiri Constructions Pvt. Ltd.
The State of Karnataka, State Level Sanctioning and Monitoring Committee, Commissioner Karnataka Slum Development Board, Executive Engineer Estate Division
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Nature of Litigation
Civil writ petition under Article 226 of the Constitution of India challenging an administrative order rejecting representations for extension of time to complete construction works.
Remedy Sought
Quashing of the order dated 17-10-2022 and a direction to the 3rd respondent to extend the time to conclude the work under work orders dated 18-10-2014, 28-09-2015, and 23-08-2017.
Filing Reason
The Board terminated the contract on 27-07-2021 and subsequently rejected the petitioner’s representations for further extension.
Previous Decisions
Earlier writ petitions (W.P. Nos. 17531/2021, 17536/2021, 17534/2021) were disposed of on 06-09-2022 directing the Board to consider the representations; review petitions were also turned down.
Issues
Whether the impugned order rejecting the petitioner's representation for extension of time was arbitrary and illegal.
Whether the petitioner was entitled to a further extension of time despite the earlier termination of contract and the issuance of a fresh tender by the Board.
Submissions/Arguments
Petitioner argued that the Board did not allot sites in time, causing delay; the petitioner was ready to complete the work within a reasonable time frame and at a lower cost than a fresh tender.
Respondent contended that the petitioner failed to complete work despite two extensions and a third extension period; the termination order was not challenged, and a fresh tender had already been issued.
Judgment Excerpts
the petitioner has no doubt short completed the work allotted to it, but the termination happens unmindful of extension of term for completion of the contract by the 3rd respondent
the Board has already granted extension not once but twice and even after the third extension, the petitioner has not been able to fulfill the conditions of contract
This Court disposed of all the writ petitions on 06-09-2022 directing consideration of those representations.
Procedural History
Tender notification issued by Board; petitioner awarded work orders on 18-10-2014, 28-09-2015, 23-08-2017. Contract signed on 05-03-2016. Petitioner did not complete work; Board granted extension on 07-03-2018 for 654 days. Another extension on 13-07-2020 for 365 days. Contract terminated on 27-07-2021. Petitioner submitted representations on 06-09-2021 and 07-09-2021. Earlier writ petitions filed; disposed on 06-09-2022 directing consideration of representations. Representations rejected on 17-10-2022. Present writ petition filed.
Acts & Sections
- Constitution of India: Article 226