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2007 Supreme(Gau) 207

IN THE HIGH COURT OF GAUHATI (KOHIMA BENCH)
Maibam B.K. Singh, J.
S. Supong and Ors.
Vs.
Financial Commissioner and Ors.
Decided On: 14.03.2007

The court emphasized the equitable distribution of government funds and the need for all similarly situated persons to be treated fairly, citing the State of Assam, Public Works Department Act, 1984, Section 5(1)(a) and the Limitation Act, 1963, Section 3 to support its decision.

Headnote:

Payment Dispute - Government Contracts - [State of Assam, Public Works Department Act, 1984, Section 5(1)(a); Limitation Act, 1963, Section 3] - The court dismissed a writ petition seeking payment for pending bills for works executed under the PHE Department, Phek Division during 1984-1996. The court emphasized equitable distribution of government funds and cited the State of Assam, Public Works Department Act, 1984, Section 5(1)(a) and the Limitation Act, 1963, Section 3 to support its decision.

Fact of the Case:

The petitioners, petty contractors, sought payment for pending bills amounting to Rs. 9,24,015 for works executed under the PHE Department, Phek Division during 1984-1996. The respondents admitted the pending bills but cited non-availability of funds for non-payment.

Finding of the Court:

The court dismissed the writ petition, emphasizing equitable distribution of government funds and the need for all similarly situated persons to be treated fairly. It also highlighted the three-year limitation period for recovery of dues and the inappropriateness of a writ petition for mere recovery of an amount due under a contract by the government.

Issues: The issues included the delay in filing the writ petition, the applicability of the three-year limitation period, and the appropriateness of a writ petition for recovery of dues under a contract by the government.

Ratio Decidendi: The court held that the delay in filing the writ petition without explanation was unreasonable and that a writ petition for mere recovery of an amount due under a contract by the government is not maintainable. It emphasized the equitable distribution of government funds and the need for all similarly situated persons to be treated fairly.

Final Decision: The writ petition was dismissed as not maintainable, with observations that the respondents could take necessary steps for making payment if satisfied about the genuineness of the claim, ensuring equitable distribution of government funds.

JUDGMENT

M.BK. Singh, J.

1. Heard Mr. C.T. Jamir, learned Counsel appearing on behalf of the petitioners and Mrs. Y. Longkumer, learned Government Advocate appearing on behalf of the Government respondents.

2. This writ petition has been filed praying mainly for directing the respondents to make payment of the petitioners' 12 (twelve) pending bills amounting to Rs. 9,24,015 with interest as done in many other similar cases. According to the petitioners, they are petty contractors, who executed some works under PHE Department, Phek Division during the period 1984 to 1996 and the works were also duly verified by the concerned Verification Committee. Further, according to the petitioners, though the concerned officials of the PHE Department, Phek Division initiated a process for clearing the said pending bills and requested the Finance Department for releasing sufficient fund for enabling to clear them, the later has failed to do so.

3. In the counter affidavit filed on behalf of respondents 2, 3 and 4, there is admission about the execution of various works by the petitioners during the said period, the verification by the concerned Verification Committee and the pendency of bills of the total amount of Rs. 9,24,015. According to them, the Department is not in a position to clear the pending bills due to non-availability of fund for the purpose.

4. Mr. C.T. Jamir, learned Counsel appearing on behalf of the petitioners, vehemently submits for directing the respondents to make payment of the admitted pending bills within a specified time as was done by this Court in many other similar cases.

5. Some cases of the nature similar to the present one are found to have been disposed of by this Court by giving direction of the type submitted by the petitioners' counsel. In my considered opinion, the said type of direction is causing injustice to may contractors, who have not yet approach this Court or who are able to approach this Court only later for obtaining the said type of direction, inasmuch as those contractors, who have been able to obtain the said type of direction earlier are edging out the claims of the former class of contractors. There is no appreciable reason as to why, in respect of payment of pending bills, priority should be given to contractors who have been able to obtain the said type of direction by approaching this Court earlier, over those contractors whose bills have been pending longer but have not been able to obtain the said type of direction from this Court.

6. For securing the interest of all concerned and for ensuring an equitable distribution of Government funds in discharge of the admitted outstanding dues of the citizens, a Single Bench of this Court in Jatin Pathak v. State of Assam and Ors. WP(C) No. 3354/04 of the Principal Seat, decided on 31.5.2005, instead of issuing direction of the type mentioned above, gave modified directions to be followed in dealing with similar cases. The Single Bench in the above referred case held:

This court may reasonably assume that there will be a large number of other contractors to who money is due but who may not have moved the court for payment of their admitted outstanding dues. In the aforesaid situation, I am of the considered view that the present writ application ought to be disposed of with a little modification of the orders passed earlier in similar matters so as to secure the interests of all concerned and to ensure an equitable distribution of Government funds in discharge of the admitted outstanding dues of the citizens. Accordingly, it is ordered that the following directions shall govern this particular case as well as the course of action that the Department shall now adopt in deciding all similar claims that may be pending before it.

(1) The Public Works Department of the State of Assam shall prepare a list of contractors, in each of its Division to whom money is admitted to be due on account of the contract works performed whether under orders of the court or

























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