State authorities cannot withhold payment for goods or services rendered when liability is admitted, citing internal administrative or inter-departmental delays. Judicial intervention is warranted to ensure timely payment, with the possibility of imposing interest liability on the state recoverable from the responsible officials for prolonged inaction.

JUDGMENT AND ORDER (ORAL) :

Heard Ms. B. Soren, the learned counsel appearing on behalf of the Petitioners and Mr. D. Upamanyu, the learned Standing Counsel appearing on behalf of the Health and Family Welfare Department. I have also heard Mr. B. Gogoi, the learned Additional Advocate General who appears on behalf of the Finance Department.

2. The case of the Petitioner herein is that the Petitioner 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 supplying of the materials.

3. The Petitioner herein is a proprietorship concern engaged in the business of supplying stationery, sports, and other office- related materials under the trade name M/s Rumi Store, Mangaldoi, Assam.

4. The case of the Petitioner herein is that, during the financial years 2020–2023, the Respondent No. 3 placed a series of official indents upon the Petitioner for the supply of various stationery, sports and other office-related materials, as per requirement, against valid and duly approved quotations.

5. The learned counsel for the Petitioner submitted that, after supplying all the items as per requirement, the Petitioner submitted bills amounting to Rs.9,79,545/- to the Respondent Authorities for payment; however, the said amount has not been paid. The learned counsel further submitted that the Petitioner has also made several representations before the competent authorities, including Respondent Nos. 3 and 4; however, despite repeated communications and reminders, no action has been taken till date. It is under such circumstances, the present writ petition has been filed.

6. Mr. D. Upamanyu, the learned Standing counsel for the Health and Family Welfare Department submitted that the amount of Rs.9,79,545/- to which the Petitioner is claiming is duly admitted but on account of certain formalities to be carried out by the Department, for the financial sanction, the payment could not be made to the Petitioner.

7. It is the opinion of this Court that the Petitioner is entitled to the said amount of Rs.9,79,545/- but on account of inter- departmental delays, the Petitioner should not be penalized inasmuch as, on account of non-payment of the dues, the Petitioner is already suffering.

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

(i) The Petitioner herein is entitled to the amount of Rs.9,79,545/- from the Respondents jointly and severally.

(ii) Taking into account that the Respondent Authorities are only required to submit a fresh proposal as submitted by Mr. D. Upamanyu, the learned Standing counsel for the Health and Family Welfare Department and thereupon the financial sanction would be granted, this court directs the Respondents jointly and severally to take effective steps so that the amount to which the Petitioner is entitled to i.e. Rs.9,79,545/- is released to the Petitioner within a period of 3 (three) months from the date a certified copy of the instant judgment is served upon the Respondent Nos. 1 and 4.

(iii) This Court further observes and directs that in the circumstance, the said amount is not released within a period of 3 (three) months as above directed, interest would accrue @8% per annum from the date of expiry of 3 (three) months from the date a certified copy of the instant judgment was served upon the Respondent Nos. 1 and 4 and in such circumstances, such interest amount shall be paid by the Respondent Authorities and be later on realised from the salary of the erring officials.