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2026 Supreme(Gau) 868

THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
DEVASHIS BARUAH, J.
M/S S. D. Enterprise – Appellant 
Versus
State Of Assam And 5 Ors. – Respondent 
WP(C)/2996 of 2025
Decided On :  04-05-2026

Advocates:
Advocate Appeared:
For the Petitioners:Mr. D. P. Borah, Advocate
For the Respondents: Mr. N. R. Sharma, SC, BTC : Mr. K. Gogoi, Addl. Sr. GA, Assam

Under Article 226, the court can direct public authorities to satisfy admitted financial liabilities for completed works. Administrative delays in fund allocation do not constitute a valid legal defense for withholding undisputed payments owed to a contractor for services rendered according to established work orders.

Headnote:(A) Constitution of India - Article 226 - Writ jurisdiction - Contractual obligations - Non-payment of admitted dues by public authorities - Where authorities have verified the completion of works and formally acknowledged the liability, the lack of immediate fund availability does not absolve the state from its obligation to remit payment for services rendered - The court is empowered to issue directions to ensure the discharge of financial liabilities arising from contractual agreements when the debt is undisputed. (Paras 2, 5, 7 and 8)

Facts of the case:
The petitioner, a registered contractor, successfully completed various assigned works under official work orders and received valid completion certificates. After the submission of bills, the authorities verified the works performed and acknowledged the outstanding liability. However, payment was not released, with the authorities citing the non-receipt of funds as the reason for the delay. The petitioner approached the court seeking enforcement of the payment of the admitted outstanding amounts.

Findings of Court:
The court observed that admitted financial liabilities for completed work cannot be withheld indefinitely based on internal administrative delays or pending fund allocations. The state authorities are bound to honor their obligations once the work has been certified and the debt is acknowledged.

Issues: Whether the court can exercise writ jurisdiction to order payment for completed contractual work where the liability is admitted by the state authorities but payments are hindered by administrative funding constraints.

Ratio Decidendi: Once a public authority admits to a debt arising from a contract where the work has been duly verified and authorized, the delay in receiving funds is not a sufficient justification to deny the payment to the contractor. The court underscored the necessity of honoring legitimate financial claims without unreasonable delay.

Result: Petition allowed; respondents directed to pay the admitted amount within six months, subject to statutory deductions.

Table of Content
1. establishing the factual basis and contractual performance of the petitioner. (Para 1 , 2 , 3 , 4)
2. admission of liability by the state regarding pending contractual payments. (Para 5 , 6 , 7)
3. court mandated timeline for clearing admitted government liabilities. (Para 8)

JUDGMENT AND ORDER (ORAL) :

Heard Mr. D. P. Borah, the learned counsel appearing on behalf of the Petitioner and Mr. K. Gogoi, the learned Additional Senior Government Advocate appearing on behalf of the State Respondents. I have also heard Mr. N. R. Sharma, the learned Standing counsel appearing on behalf of the Bodoland Territorial Council.

2. The Petitioner herein is aggrieved by the inaction on the part of the Respondent Authorities in not making payment of the amount to which the Petitioner is entitled upon completion of the work.

3. The Petitioner herein is a registered Class-I contractor under the Public Works Roads Department, Public Works Building Department and Public health Engineering Department.

4. The case of the Petitioner herein is that the Respondent Authorities, more particularly Respondent No. 4, allotted several contractual works to the Petitioner at various CRPF camps in Kokrajhar District. Upon being so allotted, the Petitioner completed all the works in terms of the respective work orders and within the stipulated time, without any complaint from any quarter. It is the further case of the Petitioner that, upon completion of the said works, the concerned Authorities of the CRPF issued Work Completion Certificates in respect thereof. Thereafter, the Petitioner submitted bills amounting to Rs.3,44,38,166/- before the Office of the Deputy Commissioner, Kokrajhar, along with the Work Completion Certificates, for payment.

5. It is further the case of the Petitioner that the aforesaid amount has been duly verified by the Respondent Authorities; however, despite such verification, the admitted bill amount has not been released. The learned counsel for the Petitioner submitted that several representations were made to the Respondent Authorities for release of the said amount; however, the amount of Rs.3,44,38,166/- still remains unpaid. Being aggrieved, the Petitioner has approached this Court under Article 226 of the Constitution.

6. Mr. K. Gogoi, the learned Additional Senior Government Advocate during the course of the hearing has placed before this Court an instruction issued by the Additional Deputy Commissioner, Kokrajhar dated 19.03.2026. The said instruction is kept on record and marked with the letter “X”.

7. From a perusal of the said instruction, it appears that the Respondents have admitted that the Petitioner is entitled to the amount of Rs.3,44,38,166/-. However, due to non-receipt of funds, the payment could not be made. The said instruction dated 19.03.2026 is reproduced herein below:

“GOVERNMENT OF ASSAM

OFFICE OF THE DISTRICT COMMISSIONER, KOKRAJHAR

(Nazarat Branch

No.KNZ-5/2018(NAZ-27873)/22 Dated Kokrajhar the 19th March, 2026

To : Shri Koustov Gogoi

Addl. Sr. Government Advocate, Assam

Gauhati High Court, Guwahati

Sub : Submission of present status of the W.P.(C) No.2996/2025 (M/S S.D. Enterprise -Vs- The State of Assam & Ors.)

Ref : Your letter No.ASGA/KG/2026/2278 & 2279 dated 10/03/2026

Sir,

With reference to the subject cited above, I would like to inform you that the proposal for release of fund for clearing the outstanding liabilities of the writ petitioner along with other suppliers/contractors for supplying of various material, Generator Set on hire basis as well as construction works to various Army/CAPF camps in connection with Counter Insurgency Operations in Kokrajhar District has already been submitted to the Govt. in Home & Political Department vide this office e-File No.118137/2024/D1 Dated:18-07-2024 (copy enclosed). But, till date no fund has been received for payment to the instant writ petitioner.

As soon as the fund received from Govt. payment will be made to the

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