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2025 Supreme(HP) 984

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA 
SANDEEP SHARMA, J.
Rahul Bisht - Appellant
Versus
The State of Himachal Pradesh and Others - Respondents
CWP No. 15610 of 2024
Decided On : 07-01-2025


Advocates:
Advocate Appeared:
For the Appellants : Sunil Mohan Goel, Paras Dhaulta
For the Respondents: Rajan Kahol, Vishal Panwar, B.C. Verma, Ravi Chauhan

Writ petitions against the State for contractual obligations are maintainable even with disputed facts; courts can direct payment when liability is clear.

Headnote:

(A) Constitution of India - Article 226 - Writ of mandamus - Claim for payment of final bill for construction work - Petitioner completed work but payment not released due to paucity of funds - Court finds no dispute regarding completion of work and directs release of payment. (Paras 1, 5, 10, 11)

(B) Jurisdiction of Writ Court - Writ petition maintainable even in presence of disputed questions of fact arising from contractual obligations - Court can issue directions to ensure fair and just action by State. (Paras 6, 8)

(C) Interest on delayed payment - Court directs payment of interest at 6% per annum on the amount due. (Para 11)

Facts of the case:
The petitioner completed construction work worth Rs.54,45,812/- but was only partially paid. Despite the final bill being prepared and verified, Rs.40.00 lacs remained unpaid due to lack of funds.

Findings of Court:
The court found that the petitioner was entitled to the payment as per the final bill and directed its release along with interest.

Issues: The main issues were the non-release of payment despite completion of work and the jurisdiction of the writ court in contractual disputes.

Ratio Decidendi: The court held that the writ court has jurisdiction to entertain petitions involving contractual obligations and can direct payment when there is no dispute regarding liability.

Result: Petition allowed; respondents directed to release Rs.40.00 lacs with interest.

JUDGMENT :

Sandeep Sharma, J.

1. By way of present writ petition, petitioner has prayed for following main relief:

“(a) That this Hon’ble Court may be pleased to issue writ of mandamus directing the respondents to immediately release the 1st & Final Bill of the work done as prepared by the Assistant Engineer, Nankhari i.e. respondent No. 4 (Annexure P-3) and Memorandum of Payment (Annexure P-4) as prepared by the Executive Engineer (B&R) Division Rampur Bushahr amounting to Rs. 40.00 lacs alongwith commercial rate of interest @ 12.75%.”

2. Precisely, the grouse of the petitioner, as has been highlighted in the petition and further canvassed by Mr. Sunil Mohan Goel, learned Senior Counsel representing the petitioner is that though petitioner herein has successfully completed the work of construction awarded to him vide letter 15.09.2023, for an amount of Rs.54,45,812/-, but yet he is not being paid amount due to him. To substantiate factum with regard to completion of work as well as preparation of final bill, Mr. Goel, learned Senior Counsel representing the petitioner specifically invited attention of this Court to Annexures P-3 and P-4, perusal whereof clearly reveals that Site Engineer, after being satisfied with the quality of work done by petitioner, prepared final bill amounting to Rs.51,46,186/- in the month of March, 2024, however, except a sum of Rs.9,71,738/-, which was released in the month of October/November, 2024, remaining amount of Rs.40.00 lacs is not being released, on one pretext or the other. In terms of afore final bill prepared and verified by Assistant Engineer, the Executive Engineer, HPPWD, though authorized payment for sum of Rs.40,00,000/-, but till date, amount has not been credited in the bank account of the petitioner.

3. Vide order dated 19.12.2024, this Court had specifically called upon learned Additional Advocate General to ascertain that why despite there being completion of work, amount is not being released. Vide aforesaid order, this Court had further called upon respondents/State to file short reply affidavit within one week specifically detailing therein reasons for non-release of payment in favour of the petitioner, despite his having completed the work.Neither short reply has been filed nor amount has been released.

4. Mr. Vishal Panwar, learned Additional Advocate General, on instructions, states that Site Engineer after being satisfied with the quality of work, has already prepared the final bill, but on account of paucity of funds, amount has not been released till date. He states that Public Works Department has already taken-up the matter with the Government of Himachal Pradesh for release of funds and as and when funds are made available, bill submitted by the petitioner shall be cleared.

5. Though in the case at hand, no reply has been filed, but taking note of averments contained in the petition, which is duly supported by way of an affidavit, as well as documents annexed therewith, coupled with the fair statement given by learned Additional Advocate General, this Court finds that petitioner herein has already completed the work and department, after being satisfied with the quality of work, has already prepared the bill, if it is so, amount to which petitioner is entitled, as indicated in the final bill, deserves to be released.

6. Though it is not in dispute inter se parties, that in terms of agreement arrived inter se parties, dispute if any, qua non payment of bill is to be adjudicated by the arbitrator, if any, appointed with the consent of parties or as per direction issued by the Court under Section 11 of the Arbitration and Conciliation Act but once there is no dispute qua the liability of the respondents and as of today, Rs.42,87,250/- is payable to the petitioner, this Court sees no impediment in considering the prayer of the petitioner while exercising power under Article 226 of the Constitution of India. Aforesaid issue has already been settled by the Hon’ble Apex Court in

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