Justice Rajiv Sharma, Judge.

Respondent-Department invited tenders for the construction of Administrative Block of Panchayati Raj Institute, Baijnath, District Kangra. Petitioner participated in the tendering process. The approval to accept the lowest tender of the petitioner amounting to ` 3,67,39,405/-, which was 54.19% above the amount put to tender, i.e 2,38,27,349/- was accorded on 24.11.2009 by the Chief Engineer. Thereafter, petitioner was informed to complete all the codal formalities by the Executive Engineer on 14.12.2009. Petitioner completed all the codal formalities and agreement was also entered between the parties. Petitioner started the construction of building. However, a sum of ` 31,580.23 was deducted from the running bill of the petitioner, vide Annexure A-3.

2. Mr. Ajay Sharma has strenuously argued that the action of the respondents to deduct a sum of ` 31,580.23 from the running bill of the petitioner is illegal. According to him, the petitioner is not bound to pay cess leviable under the Building and Other Construction Workers’ Welfare Cess Act, 1996 and the Rules framed thereunder as per the concluded contract entered into between the parties. He