Allahabad High Court

Contractual rights following Letter of Intent cannot be enforced through writ jurisdiction under Article 226.

M/S Anu Enterprises Thru.Proprietor Anu Singh vs State Of U.P. Thru. Addl. Chief Prin. Secy. Secondary Edu. Lko. And 6 Others

Allahabad High CourtJUDGMENT: July 28, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner was declared the successful bidder for two construction projects (Mini Indoor Stadiums in Ambedkar Nagar) invited by Respondent No. 3 (U.P. State Construction and Infrastructure Development Corporation).

Source reference: para. 3

Letters of Intent (LoI) were issued to the Petitioner on April 21 and 22, 2026.

Source reference: para. 4

Subsequently, the State Government issued an order on April 29, 2026, replacing Respondent No. 3 with Respondent No. 7 (U.P. Projects Corporation Limited) as the nodal agency for the projects, citing unsatisfactory execution by the former.

Source reference: paras. 4, 6

Consequently, the Petitioner was restrained from work, and Respondent No. 7 issued new e-tenders for the same projects.

Source reference: para. 4

The Petitioner challenged the government order and the new tenders via writ jurisdiction.

Source reference: para. 2
02

Issues

1. Whether the rights accrued to a petitioner pursuant to the issuance of Letters of Intent and award of tenders can be enforced through a writ petition under Article 226 of the Constitution of India.

Source reference: para. 7

2. Whether the court should entertain a writ petition when the dispute arises from a non-statutory contract and an alternative remedy (arbitration or civil suit) is available.

Source reference: paras. 7, 14
03

Law Applied

Disputes involving non-statutory, purely contractual rights cannot be agitated under Article 226 of the Constitution, as held in Bareilly Development Authority v. Ajai Pal Singh.

Source reference: para. 10

Interpretation of contract terms is a matter for arbitration or civil courts as established in State of U.P. v. Bridge & Roof Co.

Source reference: para. 11

Writ courts are prohibited from compelling authorities to remedy a simple breach of contract as per Zonal Manager, Central Bank of India v. Devi Ispat Ltd.

Source reference: para. 12

Where an efficacious alternative remedy exists, the exercise of discretionary writ jurisdiction should be the exception, not the rule, affirming the principle in Rikhab Chand Jain v. Union of India and Thansingh Nathmal v. A. Mazid.

Source reference: para. 14
04

Reasoning

The Court reasoned that the relationship between the Petitioner and Respondent No. 3 is situated within the realm of private contract law, not statutory law.

Source reference: para. 11

The grievance regarding the transfer of the project nodal agency is essentially a matter between the State and Respondent No. 3; the Petitioner cannot engage in "proxy litigation" to challenge the State's administrative decision to change its nodal agency.

Source reference: para. 8

The Court observed that resolving the dispute would require an interpretation of the specific terms of the contract and the Letters of Intent, which is an exercise meant for an Arbitral Tribunal or a Civil Court, rather than a writ court.

Source reference: paras. 12-13

The Petitioner’s claims for loss of profit or damages are consequential reliefs arising from an alleged breach of contract, for which common law remedies are sufficient and efficacious.

Source reference: paras. 8, 15
05

Holding

The Court held that a writ petition is not the appropriate forum to enforce contractual rights or to remedy an alleged breach of a non-statutory contract.

The Petitioner must seek redress through the arbitration clause or a civil suit for damages/compensation.

Source reference: paras. 8, 12

The writ petition was dismissed as not maintainable under Article 226.

Source reference: para. 15
Allahabad High Court

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M/S Anu Enterprises Thru.Proprietor Anu SinghvsState Of U.P. Thru. Addl. Chief Prin. Secy. Secondary Edu. Lko. And 6 Others

Allahabad High Court · July 28, 2026

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