Gauhati High CourtAdministrative and Public LawContract Law

Assam HC Denies PMGSY Contractor’s Bid to Resume Remaining Road Work Already Awarded to Another Firm, While Leaving Termination Merits Open

Muslim Aliv.The State Of Assam And 3 Ors

Assam HC Denies PMGSY Contractor’s Bid to Resume Remaining Road Work Already Awarded to Another Firm, While Leaving Termination Merits Open. Muslim Ali vs The State Of Assam And 3 Ors. Gauhati High Court. LawLens
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In brief

The question

1. Whether the Court should exercise its jurisdiction under Article 226 to interfere with the termination when the parties’ competing explanations for non-completion raised disputed questions of fact requiring evidence.

The court held

The Court dismissed the writ petition, declining to interfere with the termination under Article 226 and refusing the requested opportunity to complete the remaining work.

It also directed

The dismissal was without prejudice to the petitioner’s right to challenge the termination in other proceedings; the period from 18 January 2025 until the judgment was directed to be excluded when computing limitation.

The Court further stated that dismissal would not prejudice the petitioner’s rights in any such proceedings, and vacated the interim order.

01Facts

The petitioner was awarded a contract under the Pradhan Mantri Gram Sadak Yojana for construction and maintenance of a rural road in Barpeta District.

p. 3

The contract, for ₹17,24,37,355, was accepted on 8 March 2019 and executed on 13 June 2019, with a 12-month completion period.

p. 3

The petitioner attributed the delay to access difficulties and alleged that the respondents had failed to perform reciprocal obligations; the respondents denied this and maintained that they had fulfilled their obligations, including payment of dues.

pp. 3, 5–6

After a modification to the contract in August 2022, the respondents terminated it on 17 December 2024 for alleged fundamental breach and at the petitioner’s risk and cost.

p. 3, 5

The petitioner sought to quash the termination and to be allowed to complete the remaining work.

p. 5

In the meantime, the remaining work was awarded to another contractor, and the court noted the reported progress and anticipated completion dates.

p. 4

Interim protection against coercive steps and imposition of risk and cost had been granted during the proceedings.

p. 4

02Issues

i.1. Whether the Court should exercise its jurisdiction under Article 226 to interfere with the termination when the parties’ competing explanations for non-completion raised disputed questions of fact requiring evidence.

pp. 5–6

ii.2. Whether the petitioner could be granted an opportunity to complete the balance work after it had been awarded to another contractor.

p. 5

03Law Applied

The Court considered its jurisdiction under Article 226 of the Constitution of India.

p. 6

It held that disputes turning on contested factual allegations, which require proof by oral and documentary evidence, are not suitable for determination in writ proceedings and should be resolved in a forum where such evidence can be led.

p. 6

04Reasoning

The Court found that the petitioner and respondents gave conflicting accounts of why the contract was not completed: the petitioner alleged non-performance of reciprocal obligations and other circumstances beyond its control, while the respondents asserted that they had performed their obligations and the petitioner had committed a fundamental breach.

pp. 5–6

Resolving those claims would require evidentiary examination, making the writ proceeding inappropriate for deciding the termination dispute.

p. 6

The Court also declined to direct that the petitioner complete the remaining work because another contractor had been engaged and the work was progressing toward completion.

p. 5

05Holding

The Court dismissed the writ petition, declining to interfere with the termination under Article 226 and refusing the requested opportunity to complete the remaining work.

pp. 5–7

The dismissal was without prejudice to the petitioner’s right to challenge the termination in other proceedings; the period from 18 January 2025 until the judgment was directed to be excluded when computing limitation.

p. 7

The Court further stated that dismissal would not prejudice the petitioner’s rights in any such proceedings, and vacated the interim order.

p. 7
Gauhati High Court

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Muslim AlivsThe State Of Assam And 3 Ors

Gauhati High Court · November 02, 2026

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