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2024 Supreme(Cal) 232

IN THE HIGH COURT AT CALCUTTA
M.V. Muralidaran, J.
Imran Enterprise & Anr. – Petitioners
Versus
The State of West Bengal & Ors. – Respondents
W.P.A. No. 22289 of 2018
Decided On : 12-04-2024

Advocates:
Advocate Appeared:
For the Petitioner: Mr. Sarajit Sen, Mr. Tapas Singha Roy,
For the Respondent: Mr. Arindam Chattopadhyay, Ms. Lipika Chatterjee, Mr. Tapas Kr. Mondal

Headnote:

Interest Payment - Writ Petition - Indian Contract Act, 1872, Section 73 - South Eastern Coalfields Limited v. State of M.P. and others (2003) 8 SCC 648

Fact of the Case:

The petitioners completed construction works in 2010 and filed a writ petition in 2018 seeking payment of final bills with interest. The respondents delayed payment citing incomplete bills and non-availability of funds.

Finding of the Court:

The court found that the delay in payment was unjustified and violative of Article 14 of the Constitution of India. The petitioners were entitled to interest on the delayed payment at the rate of 9% per annum.

Issues: Delay in payment of final bills, entitlement to interest, violation of Article 14 of the Constitution of India

Ratio Decidendi: The court relied on the Indian Contract Act, 1872, Section 73 and the decision in South Eastern Coalfields Limited v. State of M.P. and others (2003) 8 SCC 648 to establish the entitlement to interest on delayed payment in the absence of any agreement.

Final Decision: The writ petition was allowed, and the respondents were directed to pay interest at the rate of 9% per annum on the bill amounts from the date of preparation of the final bills till the date of actual payment. The security deposit amount was also ordered to be paid to the petitioners within twelve weeks.

JUDGMENT :

M.V. Muralidaran, J.

Heard Mr. Sarajit Sen, learned counsel for the petitioners; Mr. Arindam Chattopadhyay, learned counsel for the respondent State and Mr. Tapas Kr. Mondal, learned counsel for the respondent Zilla Parishad.

2. This writ petition has been filed by the petitioners for issuance of a writ of mandamus directing the respondents to pay the petitioners the amount due under the final bills (Annexure-P/2) as prepared by the respondent authority with interest at the prevailing bank rate till the actual payment is made.

3. The case of the petitioners is that on 7.12.2009 two work orders, namely RIDF-XIII under Scheme 209-10 AWC under GP Bodhakhali Khatian No.369, land area 3 Satak under Block Namkhana, AWC No.11, S.L.No.13 two construction of ICD Centre at different location in different blocks of south 24-Parganas District under RIDF-XIII, Scheme 2009-10, AWC under G.P. Narayanpur, Mouza - Narayanpur, J.L.No.47, Dag No.02, Khatian No.02, land area 3 Satak under Block Namkhana were issued in favour of the petitioners. The petitioners have satisfactorily completed the works on 5.10.2010 and 15.10.2020respectively. On 15.10.2010, a joint measurement of the works were done and recorded in the measurement books and the respondent Engineer has also prepared two separate final bills for those two works. Despite the Assistant Engineer signed those two final bills and despite the request made by the petitioners, the respondent authorities have failed to pay the bill amounts. In this regard, on 10.8.2018, the petitioners have sent a lawyer notice requesting the respondents to pay those two final bills. Despite the receipt of the lawyer notice, the respondents have not settled the amount. Hence, the writ petition.

4. It is the admitted case of both sides that pending writ petition, the bill amounts were paid to the petitioners on 9.4.2020. Now the petitioners are pressing for interest on the bill amounts till the date the payment is made.

5. The respondents by filing affidavit-in-opposition contended that as per the request of the Zilla Parishad, South 24-Parganas, the petitioner had submitted photocopies of said work done on 14.3.2020 and on the same day, the inspection report was submitted by the Junior Engineer and thereafter on 16.3.2020, the Assistant Engineer counter-signed the said report. According to the respondents, on 8.4.2020, the Zilla Parishad, South 24-Parganas had released the entire bill amount after deducting the security money. The Zilla Parishad, South 24-Parganas has no latches for payment of delay to the petitioner. The payment was delayed due to two reasons one is incomplete bill with documents and another is non-available of fund. As per Clause 19 of the tender notice, it is clear that payment will be made as per availability of the fund and the fund is not available at the relevant time.

6. The learned counsel for the petitioners submitted that being satisfied with the bills, the Assistant Engineer signed and forwarded the bills for payment and the petitioners cannot be put to suffer non-payment of the bills immediately after completion of the works. According to the learned counsel, the fund under ICDS scheme for the said work must have been made available. However, the respondent authorities intentionally delayed the payment of bill only to earn interest over the available fund at the cost of the petitioners losing interest over the final bill amount.

7. The learned counsel further submitted that there was no obligation on the part of the petitioners to submit the alleged photocopies of the work done pursuant to the respondents’ request. Therefore, the same cannot be a ground or reason of delayed payment of the bills. In fact, the works having been completed on 5.10.2010 and 15.10.2010 respectively and the bills having been prepared on 14.12.20212. However, the respondent authorities deliberately delayed even to ask for the alleged photocopies in March, 2020 only to delay and defer the payment of bil

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