Facts of the Case

Monowar Hussain, a contractor engaged by N.F. Railways for signal and telecom works in Assam, filed this writ petition disputing the amount paid to him under Running Account (RA) bills, contending that GST had been deducted from his bills and that amounts otherwise due to him under the contract had not been paid or had been wrongly withheld/terminated.

The Standard General Conditions of Contract (SGCC) governing the contract contained Clause 63 for settlement of 'excepted matters' (non-arbitrable matters) and Clause 64 providing for arbitration of other disputes — meaning the contract itself provided a dispute-resolution mechanism outside the writ court.

The Court held that interpretation and implementation of contractual clauses, including disputes over amounts due, validity of termination, or justification for withholding payment, are not matters ordinarily to be agitated or adjudicated in a writ petition, and dismissed the writ petition, while leaving it open to the petitioner to invoke arbitration under the contract or approach a civil court.

Issues Involved

  1. Whether a dispute over amounts due under a works contract (including deduction of GST from RA bills) and the validity of the contract's termination could be adjudicated in writ jurisdiction under Article 226.

Petitioner's Arguments

  • GST had been deducted from the petitioner's RA bills, and amounts otherwise due under the works contract had not been paid or had been wrongly withheld, warranting the Court's intervention.

Respondent's Arguments

  • The Standard General Conditions of Contract itself provided a dispute-resolution mechanism (Clause 63 for excepted matters and Clause 64 for arbitration), and disputes of this contractual nature were not amenable to writ jurisdiction.

Court Order / Findings

  • The Court held that interpretation, implementation, and enforceability of contractual terms — including whether any amount was due, whether the contract had been validly terminated, or whether refusal to pay was justified — are not matters that should ordinarily be agitated in a writ petition.
  • Such disputes are for adjudication by a civil court or through arbitration, as provided in the contract.
  • The writ petition was dismissed, subject to these observations, and it was left open to the petitioner to raise a dispute for reference to arbitration or to approach the civil court, with no order as to costs.

Important Clarification

This order does not decide any GST-law question — the reference to GST deducted from RA bills is simply part of the petitioner's account of disputed contract payments. The ruling is essentially about the limits of writ jurisdiction over contractual payment disputes, directing the petitioner instead to arbitration or a civil suit.

Sections Involved

  • Constitution of India, 1950 — Article 226 (limits of writ jurisdiction over contractual disputes)
  • Standard General Conditions of Contract (Railways) — Clauses 63 and 64 (excepted matters and arbitration)

Decision – In Favour of

Decided against the petitioner in the sense that the writ was dismissed as not maintainable for this kind of dispute — but he was left free to pursue arbitration or a civil suit on the underlying payment dispute, which was not decided on merits.

Case Details

  • Court: Gauhati High Court (High Court of Assam, Nagaland, Mizoram and Arunachal Pradesh)
  • Case No.: WP(C) No.5398 of 2020
  • CNR: GAHC010179882020

Link to Download the Order

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