IN THE HIGH COURT AT CALCUTTA
Partha Sarathi Chatterjee, J.
Nandalal Saha – Petitioner
Versus
Raiganj Muinicipality & Ors. – Respondents
WPA 3255 of 2024
Decided On : 17-04-2025
JUDGMENT :
Partha Sarathi Chatterjee, J.
1. This matter has been placed before the Court for clarification on the issue as to whether the State can entirely absolve itself of liability in the present case.
2. Heard the learned Advocates for the respective parties.
3. Following the proposition laid down in the decision of the Hon’ble Special Bench rendered in case of Binod Kumar Toppo vs. State of West Bengal & Ors, reported in 2011 (3) CalHN 299, the order dictated in open Court on 11.04.2025 but not transcribed is hereby recalled, and the writ petition is disposed of with the following order:
4. In the present case, a contractor, after executing the work assigned to him by the Municipality, has been persistently approaching various authorities, including this Court, seeking payment for the work executed.
5. To better understand the issue involved in the present writ petition, it is necessary to set out the key facts. The Raiganj Municipality issued a Notice Inviting Tender for the construction of a road within its territorial jurisdiction. In response, the petitioner submitted his bid and was declared the successful tenderer. Consequently, the work was awarded to him through the issuance of a formal work order. The petitioner duly executed the work in accordance with the specifications outlined in the said work order and subsequently submitted the final bill amounting to Rs. 79,56,000/- (Rupees seventy-nine lakh fifty-six thousand only). However, despite completion of the work, the Municipality has failed to honour the bill and release payment in favour of the petitioner.
6. Meanwhile, there was a change in the constitution of the Municipal Board. The newly constituted Board raised an allegation that the erstwhile Chairman had awarded the work in violation of the legal provisions and without following the prescribed procedure. As a result, a criminal proceeding was initiated against the said former Chairman.
7. However, upon conclusion of the trial, the erstwhile Chairman was acquitted by a competent court on 30th April, 2024. Despite this acquittal and the admitted completion of the work, no payment has yet been made to the petitioner.
8. Being aggrieved by such inaction, the petitioner was constrained to file a writ petition before this Hon’ble Court, being WPA 17176 of 2023. The said writ petition was disposed of by a Co-ordinate Bench of this Court by an order dated 25th September, 2023, directing the Principal Secretary, Department of Urban Development and Municipal Affairs, to take a decision in the matter after granting an opportunity of hearing to both the petitioner and a representative of the Municipality.
9. Pursuant to the said order, the Principal Secretary passed a reasoned order dated 18th December, 2023, holding that the Raiganj Municipality is solely liable to clear the petitioner’s dues for the work executed, since the work had been undertaken without prior approval of the State Government. It was further observed that the State Government cannot be held responsible for releasing funds in respect of a project that lacked both administrative approval and financial sanction.
10. Notably, there was no dispute raised as to the petitioner’s entitlement to the amount claimed in the final bill. The Principal Secretary also recorded in the said order that the work order in favour of the petitioner was issued on 24th November, 2015, the work was completed in early 2016, and a completion certificate was duly issued by Raiganj Municipality.
11. It is submitted on behalf of the petitioner that he had invested a substantial sum for the execution of the said project by availing a loan from a financial institution, secured through an equitable mortgage created on his residential property. Due to his inability to repay the loan installments, proceedings under the SARFAESI Act have been initiated against him. Furthermore, the petitioner is presently suffering from a terminal illness, namely cancer. In light of these compelling circumsta
Contractors executing government work are entitled to payment based on the belief of proper authorization, and the State must act justly in fulfilling its contractual obligations.
State and instrumentalities cannot withhold admitted dues for executed and accepted works on paucity of funds or privity pleas; violates Article 14; writ maintainable; interest payable for arbitrary ....
State and instrumentalities jointly liable for admitted dues on executed and accepted public works; cannot withhold payments citing no privity, paucity of funds or delays, violating Article 14; must ....
State cannot withhold admitted dues for executed and accepted public works citing paucity of funds or lack of privity among instrumentalities; violates Article 14, warrants interest on delay.
Delay and laches cannot be invoked by the government to deny an admitted claim for payment, emphasizing the need for timely compensation to contractors.
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