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M/s Prema Construction Versus Assistant Commissioner, Central Excise and Service Tax and others

2016 (9) TMI 1156 - ALLAHABAD HIGH COURT

Breach of Contract - Recovery of certain money from U.P. Rajya Vidyut Utpadan Nigam Limited - based on contractual matter for which remedy lies in common law - availment of Article 226 to claim any money in respect of breach of contract or tort or otherwise - Held that:- In Kerala State Electricity Board and another Vs. Kurien E. Kalathil and others [2000 (7) TMI 920 - SUPREME COURT], Court said that interpretation and implementation of a clause in a contract cannot be subject-matter of a writ p .....

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arising out of the terms of such contracts or alleged breaches have to be settled by the ordinary principles of law of contract. The fact that one of the parties to the agreement is a statutory or public body will not by itself affect the principles to be applied. The disputes about the meaning of a covenant in a contract or its enforceability have to be determined according to the usual principles of the Contract Act. Every act of a statutory body need not necessarily involve an exercise of sta .....

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many other cases. therefore, in view of the same, mandamus sought by petitioner is nothing but grant of a money decree in extraordinary equitable jurisdiction under Article 226 which ought not to have been granted. - Decided against the petitioner - Writ Tax No. - 563 of 2013 - Dated:- 24-8-2016 - Hon'ble Sudhir Agarwal And Hon'ble Kaushal Jayendra Thaker, JJ. For the Petitioner : Rakesh Kumar Srivastava, S.D. Singh, Ashish Agarwal For the Respondent : R.K. Shukla, Sr. S.C., P.K. Tripath .....

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it petition lie since in absence of any statutory right, Article 226 cannot be availed to claim any money in respect of breach of contract or tort or otherwise. 4. In Kerala State Electricity Board and another Vs. Kurien E. Kalathil and others 2000 (6) SCC 293, Court said that interpretation and implementation of a clause in a contract cannot be subject-matter of a writ petition. Whether a contract envisages actual payment or not is a question of construction of contract. If a term of contract i .....

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fact that one of the parties to the agreement is a statutory or public body will not by itself affect the principles to be applied. The disputes about the meaning of a covenant in a contract or its enforceability have to be determined according to the usual principles of the Contract Act. Every act of a statutory body need not necessarily involve an exercise of statutory power. Statutory bodies have power to contract or deal with property like private parties. Such activities may not raise any .....

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so, how much and refusal of the appellant to pay it is justified or not, are not the matters which could have been agitated and decided in a writ petition." 5. Following the above authorities, a Division Bench of this Court in M/S Prabhu Construction Company through its Proprietor Vs. State of U.P. and another (Writ C No. 25075 of 2014) decided on 05.05.2014 said as under: "In the present case, there is nothing on the record which may persuade us to hold that the contract is a statuto .....

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