Himachal Pradesh High Court
Decided On: 16.12.2025 vs Union Of India And Others on 16 December, 2025
Author: Ajay Mohan Goel
Bench: Ajay Mohan Goel
2025:HHC:43939
IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
.
CWP No. 7507 of 2024
Decided on: 16.12.2025
M/s The Shivam Enterprises ... Petitioner
Versus
Union of India and others ... Respondents
of
Coram
Hon'ble Mr. Justice Ajay Mohan Goel, Judge.
Whether approved for reporting?1
_____________________________________________________
rt
For the petitioner : Ms. Amanpreet Kaur, Advocate
through VC and Ms. Anchal Sharma,
Advocate.
For the respondents : Mr. Rajinder Thakur, CGC for
respondents No. 1 and 3.
: Mr. Rajpal Thakur, Addl. AG for
respondents No. 2, 4 and 6.
Ajay Mohan Goel, Judge (Oral)
By way of this writ petition, the petitioner has inter alia prayed for the following reliefs:-
"(i) To issue writ, in the nature of 'Mandamus' directing respondents No. 1, 3, 5 and 6 to release the pending balance payment of Rs. 4,18,89,498/- of Engineering, Procurement & Construction/EPC-25, Chamba agreement dt. 28.01.2022 (Annexure P-3), along with interest @ 12% till realization."
2. When this case was lastly listed before the Court on 11.12.2025, the following order was passed:-
1Whether reporters of the local papers may be allowed to see the judgment?::: Downloaded on - 17/12/2025 20:33:06 :::CIS 2
2025:HHC:43939 "As per report of the Registry, the report of the .
Committee has not been furnished. Learned Counsel appearing for the petitioner submits that the petitioner has not been invited by the Committee for any negotiations.
This Court is of the considered view that if that is so, of then the same amounts to contempt of Court because as far back as on 31.10.2025, the Court was intimated by learned Deputy Advocate General that the Committee stood constituted rt and the date was being collected by the Committee and that petitioner shall be associated by the Committee before any final decision is arrived at.
The case is ordered to be listed on 16.12.2025, on which date learned Deputy Advocate General shall apprise the Court as to what all the Committee has done as from the date of passing of the above mentioned orders, i.e. order dated 31.10.2025."
3. Today, learned Additional Advocate General has handed over instructions received from the Executive Engineer, NH Division, HPPWD, Theog, which are reproduced herein below:-
"In this regard it is submitted that as per the directions issued vide the matter was pursued with the office of Ld. District Attorney at the office of the worthy Engineer-in-chief Shimla and data of the constituted committee is attached for your kind perusal and also refer to the matter in this regard, attention is invited to the communication issued from the office ::: Downloaded on - 17/12/2025 20:33:06 :::CIS 3 2025:HHC:43939 of the no PW-LC-worthy Engineer-in-Chief. HPPWD vide letter .
CWPNo.7572/2023/Shivam Enterprises/-2610 dated 08/12/2025, endorsed by the District Attorney (PW), wherein it has been categorically clarified that, the issue involved in the matter is not with respect to any admitted liability, but relates to of a claim raised by the petitioner to which he is not entitled, as per the respondents. The entire admissible payment in respect of the executed work already stands released to the petitioner rt and no bill or amount is pending. The Committee for deciding claims in respect of pending bills of contractors has been constituted by the Government vide notification dated 07.07.2025, and in the present case, no such pending bill exists. The information as desired by the Government for placing the matter before the Committee had already been submitted vide e-mail dated 16.07.2025. The matter is being contested by the Department on merits, and instructions have been sought for apprising the Office of the Learned Advocate General accordingly.
It is, therefore, respectfully submitted that the factual position, as clarified above, may kindly be taken on record for the purpose of compliance of the directions issued by the Hon'ble High Court please."
4. Reply filed by the respondents-State has also been perused by the Court and relevant portion thereof reads as under:-
::: Downloaded on - 17/12/2025 20:33:06 :::CIS 42025:HHC:43939 "3....Accordingly, the work was awarded to the M/s .
Shivam Enterprises # 110 Bawa Nagar Chandigarh road, Rajpura 140401, Patiala Punjab on 03-12-2021 2022 (Copy enclosed as Annexure R-2) with a time limit of 9 months subject to maintenance for period up to 5 years as per the site handing of over memorandum the complete site was handed to the contractor on 05-02-2022 (Copy enclosed as Annexure R-3). The scope of work mainly comprised of Construction of Retaining - rt wall, Thrie beam Crash barriers, Signage from Katori Bangla to Chamba Km 39/00 to 106/00 including rectification of identified black spots (7 Nos) at RD 39/00,RD 42/165 to 42/195,RD 49/880 to 49/960,RD 57/300 to 57/315, RD59/240, RD59/290 to 59/350& RD 89/620 of NH154A in a length of KM 30.820 at Project cost of Rs 24.90 Crores. There are some serious lapses on part of the contractor which are summarized as under:-
(i) Non completion of critical work:-It is respectfully submitted that the contractor mainly executed the profitable part of the work i.e. installation of crash barrier and construction of Plain cement concrete (PCC) Retaining wall, Reinforced cement concrete (RCC) Retaining wall in a length of 115 Meter which was essentially required at site on RD 104/520 to 104/635 (Parel Ghar) photograph attached (Copy enclosed as Annexure R-18), due to quite narrow portion of the road just along the river side work was never started by the contractor at site, Despite ::: Downloaded on - 17/12/2025 20:33:06 :::CIS 5 2025:HHC:43939 repeated requests and management meetings vide letters on .
19.03.2022, 19.10.2022, 06.07.2023, 16.08-2023 23.08.2023 20.10.2023 ,28.11.2023 ,01.02.2024 25.05.2024 (Copy enclosed as Annexure R-4 to R-12) the contractor least bother to submit the design of RCC Retaining wall which was incumbent of on his fault, being EPC (Engineering procurement and construction) mode of contract as such very purpose of sanction of the road safety DPR (Detailed Project Report) by MORTH rt (Ministry of Road Transport and Highway )was defeated due to breach of contract on the part of contractor.
(ii) Submission of false bill:-The contractor submitted wrong/false claim of payment toward his 9th running bill amounting to Rs.1,74,30,000{ONE CRORE SEVENTY FOUR LACS THIRTY THOUSAND},on scrutiny of bill in higher office.
The false claim of contractor was noticed and the claim was rejects as per the Schedule H (Copy enclosed as Annexure R-15) of the agreement This false claim constitutes a gross breach of trust and ill intention on part of the contractor to defraud the Department.
(iii) Arbitration Penalties: Request to Avoid The contractor has not approached this Hon'ble High Court with clean hands and he has suppressed the material fact from the Hon'ble court.
However, it is clear that this request is a tactical maneuver to shift the responsibility of delay and to avoid the penalties that would otherwise be imposed for none performance, delays and ::: Downloaded on - 17/12/2025 20:33:06 :::CIS 6 2025:HHC:43939 fraudulent billing. Even the end treatment of crash barrier was .
not completed by the contractor which was very crucial for safety point of view and also pointed out by the Ministry of Road Transport and Highway (MORT&H) Officer during inspection vide letter no. 05.07.2024(Copy enclosed Annexure R-
of
13)."
5. This Court is of the considered view that in the peculiar rt facts of this case as there are disputed facts between the parties as to whether the entire emoluments to which the petitioner is entitled, stands released in favour of the petitioner or not, these issues cannot be decided by this Court under Article 226 of the Constitution of India and the better course for the petitioner shall be to have recourse to the other legal remedies which are available to it.
6. Accordingly, this writ petition is closed, with liberty to the petitioner to have recourse to such remedies, as are available to it, in accordance with law. Pending miscellaneous applications, if any, also stand disposed of accordingly.
(Ajay Mohan Goel) Judge December 16, 2025 (narender) ::: Downloaded on - 17/12/2025 20:33:06 :::CIS