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2026 Supreme(Gau) 787

THE GAUHATI HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH 
DEVASHIS BARUAH, J.
M/s Nawab Enterprise & Another - Petitioner
Vs.
The State of Assam & Others - Respondent
WP(C) No. 426 of 2026
Decided On : 22-05-2026

Advocates:
Advocate Appeared:
For the Petitioner:Ms. P. Borah, Advocate
For the Respondent: Ms. D. Bora, Standing Counsel, Health & Family Welfare Department

When a contractor completes work assigned by public authorities and payment is withheld, the court may exercise its writ jurisdiction to direct a time-bound verification and release of dues, provided the performance of work and entitlement are confirmed through an established administrative process.

Headnote:(A) Writ Jurisdiction - Non-payment of dues for executed works - Liability of state authorities - Contractors seek release of pending payment for completed public infrastructure and service works - Dispute regarding outstanding billing for projects - Court directs authorities to verify work completion and document submission to determine entitlement - Constitutional remedy invoked to address administrative inaction on contractual obligations. (Paras 3, 6)

Facts of the case:
The petitioners, registered contractors, performed works related to a medical care facility for a government department. Despite completing the assigned tasks and submitting the invoices, a significant portion of the payment remained unpaid. The petitioners approached the High Court seeking a directive for the release of the withheld funds by the respondent authorities.

Findings of Court:
The court observed that while there was no disagreement regarding the issuance of the work order, the determination of the final amount payable required an administrative verification process. The court concluded that it was necessary to ensure that the work was successfully executed and that all requisite documents were produced, thereby mandating a time-bound verification.

Issues: Whether the court can exercise writ jurisdiction to direct government authorities to verify and clear outstanding contractual payments owed to a contractor who has performed services related to public work.

Ratio Decidendi: In cases involving undisputed work orders where performance is claimed but payment is delayed, the court may direct a time-bound administrative verification of work completion and entitlement to facilitate the release of legitimate dues owed to contractors.

Result: Petition disposed of with a direction to the authorities to complete verification and release payments within six months.

Table of Content
1. legal entitlement for payment of government contract dues. (Para 1 , 2 , 3)
2. governmental verification of work as a condition for payment. (Para 4)
3. judicial mandate for verifying and clearing outstanding contract payments. (Para 5 , 6)

JUDGMENT & ORDER :

DEVASHIS BARUAH, J.

Heard Ms. P. Borah, learned counsel appearing on behalf of the petitioners and Ms. D. Bora, learned Standing Counsel appearing on behalf of the Health and Family Welfare Department, Assam.

2. The instant writ petition has been filed by the Petitioners challenging the non-payment of an amount of Rs. 43,33,195.92 against the execution of works allotted to the petitioners vide letter No. NHM/DHS/MRG/Covid’19/2021-22/574 dated 20.05.2021 issued by the Joint Director of Health Services, Morigaon, Assam.

3. The case of the petitioners is that the petitioner No. 2 herein is a registered contractor under the Department of Public Health, Government of Assam and the proprietor of Petitioner No. 1. During period of Covid-19 pandemic, the respondent authorities had allotted several works to the petitioners related to Bowalguri ITI COVID Care Centre at Morigaon district and issued work order vide letter dated 20.05.2021. As per the said work order, the petitioners had completed the works allotted to them and also submitted the bills of the works, so completed by them. However, out of the total bill amount of Rs. 56,07,016.92/-, the respondent authorities had paid only Rs.12,73,821/- to the petitioners and the payment of remaining amount i.e. Rs. 43,33,195.92/- has not yet been made to the petitioners; even though, the bills had already been submitted by the petitioners to the respondent authorities. Being aggrieved, the petitioners have approached this Court by filing the present petition.

4. Ms. D. Bora, learned Standing Counsel appearing on behalf of the Health and Family Welfare Department, Assam submitted that there is no denial to the fact that the work in question was issued to the Petitioners. The learned Standing Counsel, however, submitted that the entitlement of the Petitioners would depend upon verification to be carried out by the Respondent Authorities.

5. Upon perusal of the materials on record, this Court is of the opinion that if the Petitioners had completed the abovementioned work, the Petitioners would be entitled to the amount. However, for the same, verification on the part of the Respondent Authorities would be required.

6. This Court therefore disposes of the instant writ petition with the following observations and directions:-

(i) The Respondent Authorities shall verify as to whether the Petitioners had successfully executed the work, i.e. Supply diet & other requirement at Bowalguri ITI Covid Care Centre.

(ii) The Respondent Authorities shall also verify as to whether, the Petitioners had submitted the requisite documents which are required for the purpose of releasing the amount due, as claimed by the Petitioners.

(iii) The Respondent Authorities shall also verify the entitlement of the Petitioners to the dues, and if upon verification in the manner stated above, it is found that the Petitioners are entitled to any such amount, the Respondent Authorities shall pay the same to the petitioners.

(iv) The above exercise be completed within a period of 6 (six) months from the date a certified copy of the instant order is served upon the respondent authorities.

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