RANCHI, India, July 7 -- Jharkhand High Court issued the following order on June 6:

1. The instant writ petition has been filed under Article 226 of the Constitution of India for direction upon the respondents to pay the outstanding amount of Rs. 67.5 Lakh along with interest at the rate of 18 per cent per annum payable to the petitioner for supply of materials against Package 60 for Bhilai Steel Plant in relation to Purchase Order No. HEC/Proj/TRF-Pkg. 060 /BSP/08-1443 dated 24.07.2008 issued by Sr. DGM/Project Division, Heavy Engineering Corporation Limited along with the supervision work carried out by the petitioner for erection and commissioning of the New Coal Handling Plant at Bhilai Steel Plant (SAIL).

2. Learned counsel for the petitioner submits that the core grievance of the petitioner is the non-payment of admitted dues by the respondents. It is further submitted that, despite a series of negotiations and communications between the parties, the admitted dues remain unpaid.

3. During the course of arguments, it has emerged that the agreement between the parties contains a dispute resolution mechanism. As per Clause 31.0(b), any dispute arising out of or in connection with the order/purchase order, including any breach thereof, is to be initially resolved amicably and in good faith through negotiations between the designated executives of the parties

4. It appears that parties have not taken recourse to the above stated dispute resolution modality.

5. Learned counsel for the respondents has submitted that the negotiation in terms of Clause 31.0 (b) can be undertaken if the designated executive of the petitioner approaches the respondent no. 1, who in turn, would designate an executive in terms of Clause 31.0 (b). He has also submitted that no counter-affidavit has been filed in the present case and therefore, it cannot be said at this stage that the alleged dues are admitted by the respondents.

6. In view of the available efficacious alternative remedy, no order in the instant writ petition is being passed.

7. However, the petitioner is at liberty to initiate steps in terms of Clause 31.0(b) of the agreement by appointing a designated officer to approach respondent no. 1. This shall be done by submitting a detailed representation supported by relevant documents, including a copy of the writ petition and a copy of this order. Upon receipt of such representation, the Chairman-cum-Managing Director of respondent no. 1 shall take necessary action and nominate a designated executive to facilitate the amicable resolution of the dispute through negotiation. The aforesaid exercise shall be undertaken as expeditiously as possible and, in any case, within a period of one month from the date of submission of the representation by the petitioner.

This writ petition is, accordingly, disposed of.

Pending interlocutory application, if any, also stands disposed of.

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