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2026 Supreme(Gau) 861

THE GAUHATI HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
DEVASHIS BARUAH, J.
Dulal Uddin Ahmed S/o Yakub Ali - Appellant
Versus
The State Of Assam And Ors. - Respondent
WP(C) No.1433 of 2026
Decided On : 27-04-2026

Advocates:
Advocate Appeared:
For the Appellant :Ms. P. Talukdar , Advocate
For the Respondent: : Mr. D. Gogoi, SC, PHE

Public authorities must ensure timely payment for successfully executed contractual works. Withholding admitted dues without conducting necessary verification of performance and documentation is impermissible, and authorities are mandated to complete such verifications and release entitled payments within a specified timeframe.

Headnote:(A) Writ Jurisdiction - Contractual works - Non-payment of admitted dues - Claim for release of payment for completed project works - Petitioner seeking relief for unpaid bill amount - Respondent authorities failed to discharge their duty causing financial hardship. (Para 4)

(B) Contractual Liability - Obligation to pay - If a contract has been awarded and the work has been duly completed, authorities cannot deny payment, as such amount is due as per law and terms of the agreement. (Para 6)

(C) Administrative Procedure - Verification - Where a claim for payment is made, it is incumbent upon the concerned authorities to carry out necessary verifications regarding the award of the contract, the successful execution of the works, and the submission of requisite documentation. (Paras 6 and 7)

Facts of the case:
The petitioner, a contractor, submitted that contractual works were executed and completed as per awarded work orders. Despite repeated representations, the outstanding bill amount for these executed works remained unpaid, causing prejudice and financial difficulty to the petitioner.

Findings of Court:
The Court held that public authorities cannot arbitrarily deny contractual payments. It directed that the respondent authorities must conduct a verification process to confirm the award of the contract, the successful execution of the work, and the submission of required documents to justify the release of funds.

Issues: The main issues were whether the respondent authorities are justified in withholding payments for completed works without due verification and whether the petitioner is entitled to the claimed amount upon proof of successful contract execution.

Ratio Decidendi: Contractual obligations must be honored by public authorities once the execution of work is established. Administrative inaction regarding payment for satisfactory performance of a contract is not sustainable in law, necessitating a directive for time-bound verification and disbursement.

Result: Writ petition disposed of with directions to complete the verification and disbursement process within six months.

Table of Content
1. state obligation to pay for executed contractual works. (Para 1 , 2 , 3)
2. requirement of verification for disputed contractual claims. (Para 4 , 5)
3. court mandate for administrative due diligence in payments. (Para 6 , 7)
4. directive for time-bound verification and release of dues. (Para 8)

JUDGMENT AND ORDER :

DEVASHIS BARUAH, J.

Heard Ms. P. Talukdar, the learned counsel appearing on behalf of the Petitioner. Mr. D. Gogoi, the learned counsel appears on behalf of the PHE Department of the Government of Assam.

2. The instant writ petition has been filed by the Petitioner challenging the non-payment of the admitted amount of Rs.30,19,609/- in respect of various contractual works including the work “Access to Safe Drinking Water and Sanitation for All Priorities Safe Wash Practices Project” under the Nagaon Public Health Engineering Division, Government of Assam.

3. The case of the Petitioner is that he is a registered contractor engaged in execution of contractual works awarded by the Respondent Authorities, who have from time to time, entrusted him with various work orders. The Petitioner duly executed the said works within the stipulated time. It is the further case of the Petitioner that although the works including the above-mentioned project under the Nagaon Public Health Engineering Division were completed, the outstanding bill amount has not been cleared till date inspite of repeated approaches. The total amount claimed to be payable to the Petitioner is Rs.30,19,609/-.

4. The learned counsel appearing on behalf of the Petitioner submitted that the Petitioner has been pursuing the matter bonafidely and diligently with the Respondents, but the Respondent Authorities have not shown any interest in making payment of the admitted amount of Rs.30,19,609/- due to the Petitioner, for which the Petitioner is facing hardship. The learned counsel for the Petitioner further submitted that the Respondent Authorities have failed to discharge their duty in accordance with law and the same has caused prejudice to the Petitioner. Hence, the Petitioner has approached this Court by filing the instant writ petition.

5. Mr. D. Gogoi, the learned Standing Counsel appearing on behalf of the PHE Department submitted that he has not received any instruction in the matter. Be that as it may, the learned Standing Counsel of the PHE Department, however, submitted that as to whether the Petitioner was awarded the contract and whether the Petitioner had completed the work and is entitled to the amount claimed or any other amount would be subject to certain verifications which are required to be conducted by the Respondent Authorities.

6. This Court is of the opinion that if the Petitioner has been awarded the contract and thereupon has duly completed the work, the Respondent Authorities cannot deny the Petitioner to the contractual amount which the Petitioner is entitled to as per law as well as the terms of the agreement.

7. It is the opinion of this Court that the said would require certain verifications to be carried out by the concerned Respondent Authorities.

8. Accordingly, the instant writ petition stands disposed of with the following observations and directions:-

(i) The Respondent Authorities shall verify as to whether the contract in question was awarded to the Petitioner and as to whether the Petitioner had successfully executed the work, i.e. “Access to Safe Drinking Water and Sanitation for All Priorities Safe Wash Practices Project” under the Nagaon Public Health Engineering Division, Government of Assam”.

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

(iii) The Respondent Authorities shall also verify the entitlement of the Petitioner to the dues, and if upon verification in the manner stated above, it is found that the Petitioner is entitled to any such amount, th

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