Where a contractor has completed public works and obtained technical certification, the state is obligated to perform a timely verification of the claim and disburse earned payments and security deposits in accordance with established judicial precedents regarding the settlement of contractor dues.

JUDGMENT :

DEVASHIS BARUAH, J.

Heard Mr. A.K. Azad, the learned counsel appearing on behalf of the Petitioner. Ms. M. Das, the learned Standing Counsel appears on behalf of the PWD.

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 completion of the work.

3. The Petitioner herein is a registered Class-1(A) contractor under the PWD, Government of Assam, and has executed various works in the said Department to the entire satisfaction of the concerned authorities.

4. The case of the Petitioner herein is that, vide Work Order No. CE/NEC/BR/11/2012/Pt-V/7 dated 10.10.2012 issued after completion of the tender process against Tender No. NEC/BR/08 of 2012–13 of the Chief Engineer (Border Roads & NEC Works), a formal work order was issued in favour of the Petitioner by the Chief Engineer, PWD, Border Roads & NEC Works, Assam, Guwahati. By the said work order, the Petitioner was allotted the work, namely, “Development of Margherita–Deomali Road in Tinsukia District in Assam under the Social and Infrastructure Development Fund (SIDF) (Ch. 0.00 m to Ch. 750.00 m, including construction of R.C.C. Bridge No. ½), Package No. TSK-SP-1A.”

5. It is the case of the Petitioner that, after signing of the agreement and furnishing of performance security, the Chief Engineer, PWD, Border Roads & NEC Works, Assam, on 10.10.2012, issued a letter to the Petitioner asking him to proceed with the execution of the said work in accordance with the contract documents. Accordingly, the Petitioner commenced the work as per the terms and conditions of the agreement and submitted Running Account Bills for the said work before the Respondent Authorities from time to time.

6. It is the further case of the Petitioner that the Respondent Authorities made part payments of the running bills of the Petitioner, and finally, on 10.11.2015, the Petitioner completed the said work and submitted the final bill. Thereafter, the Executive Engineer, PWD, Tinsukia State Road Division issued a Completion Certificate certifying that the work had been physically verified by him and found to have been completed by the Petitioner in all respects in accordance with the specifications, drawings, and tender conditions, with 100% physical progress. Further to that, it is the case of the Petitioner that the Respondent Authorities paid an amount of Rs. 1,74,78,299/- against the bills submitted by the Petitioner from time to time, and at the time of such payments, the Respondent Authorities deducted all applicable charges, such as Income Tax, VAT, Labour Cess, etc., and also deducted security deposits against each and every bill of the Petitioner. In this regard, the Executive Engineer, PWD, Digboi & Margherita Territorial Road Division, issued a Liability Statement on 30.06.2020, wherein it was mentioned that the Petitioner had been paid an amount of Rs. 1,74,78,299/- after deductions, and that an amount of Rs. 13,08,014/- remained outstanding as balance bill amount payable to the Petitioner. It was further mentioned that the security deposit amounting to Rs. 12,05,309/- deducted from the Petitioner’s bills was also liable to be paid to the Petitioner. It is further averred in the writ petition that the Petitioner submitted a representation on 10.08.2020 to the Executive Engineer, PWD, Margherita–Digboi Territorial Road Division, Tinsukia, praying for payment of the outstanding bill amount and security deposit. However, no steps were taken in that regard. The Petitioner also sub