IN THE HIGH COURT OF JUDICATURE AT PATNA LPA No.90 of 2009 M/S IRCON INTERNATIONAL LTD. Through its Joint General Manager, Sone Nhawan, Ist Floor, Daroga Pd. Rai Path,Patna ……Appellants (in all the appeals) Versus M/S DEBASHREE CONSTRUCTIONS(INDIA) Pvt. Ltd. A company incorporated under the Indian Companies Act 1956 having its office at New Area, Nawajadik Complex, Old G.T. Road, Aurangabad, Bihar through its Managing Director Smt. Geeta Singh wife of Sri Kaushal Kumar Singh, Resdent of New Area, Aurangabad, Bihar. ….Respondents (in all the appeals) with LPA No.91 of 2009 M/S IRCON INTERNATIONAL LTD. Versus M/S DEBASHREE CONSTRUCTION(IND with LPA No.92 of 2009 M/S IRCON INTERNATIONAL LTD. Versus M/S DEBASHREE CONSTRUCTIONS(IN ----------- For the Appellants : Mr. Ranjan Kumar Sinha, Advocate For the Respondent : None --------- 4 15.4.2009 All the three appeals have been heard together and they are being disposed of by this common order. All the appeals are directed against the order dated 3.12.2008 passed by the learned Single Judge in C.W.J.C. No. 13573 of 2008 whereby the appellants were directed to decide the matter with regard to giving the rate of escalated price of bitumen within three months and if the appellants feel that there is no question of giving price escalation then they themselves supply the bitumen to the respondents. The respondent-petitioner had undertaken the road construction and repair work under Pradhan Mantri Gramin Sadak Yojana from the appellants Ircon International Limited. The funds for the project - 2 - come from the Central Government through the State Government and paid by the appellant to the respondent. The work was started under the policy decision of the government in the Ministry of Petroleum Oil and Natural Gas. The Oil company suddenly increased the cost of bitumen and the appellant respondent directed the respondent petitioner to complete the work at a substantive higher price without payment, thereof. The respondents asked for payment of the escalated cost of bitumen otherwise they would suffer loss and for the same cause petitioner filed a writ petition. Learned judge held that the IRCON which is a Govt. of India undertaking has to act fairly and reasonably in all maters including contractual matters. If the contract had been with the State Government, no price escalation clause was there, the State of Bihar acted fairly and reasonably in permitting payment of price escalation. According to the appellant the Central Government only entrusted the scheme of P.M. G.S.Y It is a fixed value contract. No escalation is permissible Learned Single Judge has only observed in his order as follows: “Keeping in view the aspects as noted above, I direct the petitioner to make a detailed representation with regard to its claim along with a copy of this order to the Incharge Engineer of the IRCON concerned with this contract, who would forward the same for redressal of the petitioner’s dispute and see that the same is decided within three months from the date such a representation is filed. In case, IRCON feels that there is no question of giving any price escalation then they may consider supplying the bitumen itself to the contractor, as per the bill of quantity. It would avoid the entire controversy.” It is also in the nature of a recommendation. There is no positive direction. Petitioner can also file a representation to the Govt. of India, so that it can consider the increase in price of bitumen of Govt. of India - 3 - Rahman/ respondent. In view of the fact that it is only in recommendatory in character, we do not find any reason to interfere with the impugned order and the appeals are dismissed. (J.B.Koshy, CJ) (Dr. Ravi Ranjan, J)