In CIVIL APPEAL NO. 2610 OF 2019, M/S SURYA CONSTRUCTIONS vs THE STATE OF UTTAR PRADESH, an appeal was filed before the Supreme Court against the High court order dismissing a writ petition filed by a contractor. The High Court had dismissed the petition on the ground that disputed questions of fact arise and that the amount due arises out of a contract.
The issue in the dispute was in relation to a claim of payment against extra work raised by the Appellant. The Supreme Court found that the claim had not been raised by the respondent, rather they have stated that no funds are available to make the payment.
The Supreme Court referring to the judgment in ABL International Ltd. vs Export Credit Guarantee Corporation of India Ltd. and disagreeing with the High Court observed that there is no dispute on fact and that where the State behaves arbitrarily, even in the realm of contract, the High Court could interfere under Article 226 of the Constitution of India.
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