AI Insights
The case involves M/s Mecon Ltd., the petitioner, who filed a writ petition against M/s NTPC Ltd. and others, challenging the termination of a contract for the 'External Coal Handling Package for North Karanpura STPP' and the invocation of a bank guarantee without a show-cause notice. The petitioner sought to quash the termination letter dated 24.02.2018 and demanded a refund of the invoked bank guarantee, claiming the actions of NTPC Ltd. were illegal and arbitrary. Both parties, being Central Public Sector Enterprises, agreed to resolve the dispute through the AMRCD mechanism following the issuance of an office memorandum by the Ministry of Heavy Industries & Public Enterprises.
Appeal Details
Counselvise Citation
[2018] 140 COUNSELVISE.COM (IT) 801601 (HC-JHARKHAND)
Assessee PAN
Bench
Appeal Number
CRN Number
Appellant
Respondent
Appeal Type
Others
Pronouncement Date
06-07-2018
Assessment Year
misc
Judgement Text
"1 IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P. (C) No. 1188 of 2018 M/s Mecon Ltd., Ranchi through its General Manager (Contract/Claim/Town Administration) … … Petitioner Versus 1. The Union of India through the Secretary, Ministry of Power, Govt. of India, New Delhi 2. M/s NTPC Ltd., through its Chairman-cum-Managing Director, New Delhi 3. The Director (Projects), NTPC Ltd., New Delhi 4. The General Manager (Contracts), NTPC Ltd., Noida, Uttar Pradesh 5. The Head of Project, NTPC Ltd., North Karanpura STPP, Hazaribagh 6. The Executive Director (North Karanpura), NTPC Ltd., Super Thermal Power Project, North Karanpura, Tandwa, Chatra 7. DGM (Civil), NTPC Ltd., Super Thermal Power Project, North Karanpura, Tandwa, Chatra 8. The Senior Manager, Union Bank of India, Doranda, Ranchi 9. The Chief Manager, ICICI Bank Ltd., Commercial Banking, Jamshedpur ... … Respondents CORAM: HON'BLE MR. JUSTICE RAJESH SHANKAR ----- For the Petitioner : Mr. Rajiv Ranjan, Sr. Advocate Mr. Shray Mishra, Advocate For the Respondent-UoI : Mr. Devanand Kumar, CGC For Respondent Nos. 2 to 7 : Mr. A.K. Sinha, Sr. Advocate Mr. Prashant Pallav, Advocate For the Respondent No. 8 : Mr. P.A.S. Pati, Advocate Mr. Rohan Kashyap, Advocate Mr. Nandan Prasad, Advocate ----- Order No. 06 Dated: 06.07.2018 The present writ petition has been filed for quashing the letter dated 24.02.2018 (Annexure-23 to the writ petition) issued by the respondent- M/s NTPC Ltd., whereby the contract for “External Coal Handling Package for North Karanpura STPP” has been terminated and the bank guarantee submitted by the petitioner has been invoked without issuance of any show-cause notice to the petitioner. Further prayer has been made for a declaration that the act and action of the respondent-M/s NTPC Ltd. in invoking the bank guarantee is illegal and arbitrary as there was no reason to invoke the same. The petitioner has also prayed for refund of the bank guarantee invoked by M/s NTPC Ltd. 2. A supplementary affidavit dated 04.07.2018 has been filed 2 on behalf of the respondent-M/s NTPC Ltd. bringing on record an office memorandum dated 22.05.2018 issued by the Ministry of Heavy Industries & Public Enterprises, Department of Public Enterprises, Government of India for settlement of commercial disputes between the Central Public Sector Enterprises (CPSEs)/Port Trusts inter se and also between CPSEs and Government Departments/Organizations (excluding disputes concerning Railways, Income Tax, Customs & Excise Departments) through Administrative Mechanism for Resolution of CPSEs Disputes (AMRCD). 3. In view of the issuance of the said office memorandum dated 22.05.2018, the learned Senior Counsel for the petitioner as well as M/s NTPC jointly submit that they are ready to get the dispute resolved through the aforesaid mechanism as both are the Central Public Sector Enterprises (CPSEs). 4. The learned Senior Counsel for the petitioner submits that the petitioner will be taking due steps in view of the procedure prescribed in the office memorandum dated 22.05.2018. 5. In view of the aforesaid submission of the learned Senior Counsel for the parties, the writ petition is accordingly disposed of. It is expected that the bodies/the committees mentioned in the office memorandum dated 22.05.2018 shall take prompt steps for resolving the dispute as per the procedure laid down therein. I.A. No. 3228 of 2018 and I.A. No. 3229 of 2018 also stand disposed of. (Rajesh Shankar, J.) Manish "
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