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Judgment
Heard Mr. B. Pathak, the learned counsel appearing on behalf of the Petitioner and Mr. P. Nayak, the learned Additional Advocate General who is also the Standing counsel of the PWD appearing on behalf of the Respondent Nos. 1 to 5. I have also heard Mr. A. Chakraborty, the learned counsel appearing on behalf of the Respondent No.6.
The Petitioner and the Respondent No.6 are embroiled in a dispute in the present proceedings as to who is entitled to the proceeds of the work completed.
From the materials on record, it is apparent that there is a Memorandum of Understanding between the Petitioner and the Respondent No.6 dated 11.01.2021 in respect to the terms and condition agreed upon for carrying out the work relating to “Construction of Proposed North Lakhimpur By-pass from existing km 338/924 to km 349/213 of NH-52 in the state of Assam (Job No.052-AS-2011-12-099) Package No. PWD/BRD(Rd)/NAG/2011-12/06. The said contract was awarded to the Petitioner.
In terms of the said Memorandum of Understanding dated 11.01.2021, the Petitioner approached the Respondent No. 6 for undertaking the work. Clause No.5 of the said Memorandum of Understanding stipulates that all the payments of the Bills/IPCs/SPSs/Any other payment recommended by the PWD in connection with the project would be released in the Joint Project Account. The Joint Project Account is a Current Account bearing Account No.0307050013961 maintained in the Punjab National Bank, North Lakhimpur Branch.
In the backdrop of the above, it is seen that the work in question had been duly completed and this is the second round of litigation, whereby, on account of the dispute between the Petitioner and the Respondent No. 6 as to who would be entitled to the said amounts, the Chief Engineer, PWD (NH Works) had passed an order dated 31.12.2025 which is impugned in the present proceedings.
It is also seen from the tenor of the impugned order dated 31.12.2025 that it was agreed upon that the said amount shall be payable to the Respondent No.6. The Petitioner herein has disputed the said aspect. It is the opinion of this Court that such disputes are purely disputes between the Petitioner and the Respondent No.6 should be adjudicated only before a competent Court of Civil Jurisdiction or Arbitration if there exists an Arbitration Clause. Under such circumstances, the public law remedy under Article 226 of the Constitution cannot be involved.
This Court also take note of the contents of the Memorandum of Understanding dated 11.01.2021, which neither the Petitioner nor the Respondent No. 6 disputes. It is categorically stipulated therein that any payments received in respect of the contract shall be deposited only in the joint bank account, i.e. the Joint Project Account bearing Account No. 0307050013961 maintained in the Punjab National Bank, North Lakhimpur Branch.
Considering the above, this Court therefore disposes of the present writ petition with the following observations and directions:
The Chief Engineer, PWD (NH Works) who is the Respondent No.2 is directed to disburse the entire amount payable to the Joint Project Account bearing Account No. 0307050013961 maintained in Punjab National Bank, North Lakhimpur Branch. The same should be done not later than 4 (four) months from the date a certified copy of this judgment is served upon the Chief Engineer PWD (NH Works) i.e. the Respondent No.2.
Upon deposit of the said amount, the Petitioner as well as the Respondent No.6 would be at liberty to amicably resolve the dispute and if such dispute is not resolved, the Petitioner as well as the Respondent No.6 shall be at liberty to get their disputes resolved before a competent Court of Civil Jurisdiction and if there exists an Arbitration Clause, then through Arbitration.
Interim order passed earlier stands vacated.