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2023 Supreme(J&K) 705

HIGH COURT OF JAMMU AND KASHMIR AND LADAKH
SINDHU SHARMA, J.
Mukesh Singh – Appellant
Versus
Union Territory of J&K & Ors. – Respondent
WP(C) No. 1747/2021
Decided on : 12-10-2023

Advocates:
Advocate Appeared:
For the Appellant : Jagpaul Singh
For the Respondent: Amit Gupta

A contractor's entitlement to payment for executed works cannot be denied based on alleged lack of administrative approval when such works were accepted, confirming the principle of accountability in contractual dealings.

Headnote:(A) Article 226 of the Constitution of India - Contractors - Payment of dues - The petitioner, a contractor, successfully executed works but was owed Rs. 6,22,000/- which the respondents delayed despite admitting liability. The court held that it is not the contractor’s responsibility to ensure all approvals were in place before executing work. (Paras 1, 4, 10, 12)

(B) Administrative approval - The respondents cannot avoid liability by claiming lack of administrative approval after the work was executed. They must adhere to their obligations in dealings with contractors. (Paras 9, 11)

Facts of the case:
The petitioner executed various road works under a contract but faced undue delay in payment from the respondents despite their admission of liability for Rs. 10,47,000/-.

Findings of Court:
The court found that the respondents must fulfill their payment obligation, having admitted the debt for works executed satisfactorily.

Issues: The main issue addressed was the validity of the respondents’ refusal to pay based on claimed lack of administrative approval despite acknowledging the works were carried out.

Ratio Decidendi: The court ruled that once works are executed and accepted, the respondents are bound to honor the payment regardless of administrative technicalities. The lack of approval cannot serve as a defense against payment.

Result: Petition allowed; respondents directed to pay Rs. 6,22,000/- with interest.

Table of Content
1. petitioner executed work assigned after tender process. (Para 1 , 2)
2. petitioner made claims for payment of work executed. (Para 3 , 4 , 5)
3. respondents admit work execution and liability, dispute funding. (Para 6 , 7 , 8)
4. court questions execution approval and administrative authority. (Para 9 , 10)
5. liability for payment cannot be denied by respondents based on technicalities. (Para 11 , 12)
6. court orders payment of remaining due amount to petitioner. (Para 13)

JUDGEMENT

1. The petitioner, who is "A" Class Government contractor by profession, claims to have executed the construction work which was allotted to him after participating in the tendering process issued by the respondents. That pursuant to work order, the petitioner has executed the construction of road works of improvement/ restoration of Rohi Minor breached at RD 900-1200M by way of plugging at various places, plugging of leakage between RD 7000-7100 M of D-9 by way of concreting and restoration of damages/plugging of leakage and cuts of Katyal Minor of D-10A RD 2300-2600M.

2. The Superintending Engineer, Hydraulic Circle, Jammu in reference to the letter No. JID/II/2320 dated 11.12.2019 vide his communication dated 13.12.2019 accorded sanction/approval for execution of the aforesaid work.

3. The said work was executed and completed by the petitioner well within time and up to the satisfaction of the respondents, however, an amount to the tune of Rs. 10,58000/- is to be paid to the petitioner for the execution of the aforementioned work. The respondents were avoiding the payment to the petitioner on one pretext or the other. Thereafter, on 05.03.2021 the petitioner served a legal notice upon the respondents through his counsel for release of the amount and upon this, an amount to the tune of Rs. 4,25,000/- was released out of the total amount of Rs. 10,58,000/-

4. The petitioner submits that although he has executed the aforesaid work but the payment due to him for successful execution of the work has not been made to him till date. The respondent No. 3 vide communication dated 14.07.2021 admitted that the said work was executed by the petitioner and further admitted the work done claim of the petitioner to the tune of Rs. 10,47,000/-. It is admitted by respondent No.3 that out of Rs. 10,47,000/-, an amount to the tune of Rs. 4,25,000/- already stands released and an amount to the tune of Rs. 6,22,000/- is still outstanding.

5. The grievance of the petitioner is that even though he has successfully executed the works allotted to him to the entire satisfaction of the respondents but the respondents, despite admitting their liability to make payments, have not released amount due to him till date.

6. The respondents in their objections submitted that the works had been executed by the petitioner vide approval issued by SE Hydraulic Circle Jammu's No. SE/Hyd/DB/7452 dated 13.12.2019 and SE/Hyd/DB/7451, dated 13.12.2019 and these are the contractual matters and the claims can be settled only in the light of the terms and conditions of the allotment order. They further submitted that the work which had been claimed executed is subject to verification, the verification committee had also been constituted by Chief Engineer (I&FC) Jammu vide No. IFCJ/Legal/5285-88, dated 17.06.2023 to verify the work done claim in the light of the terms and conditions of the contract. They further submitted that the verification stands accomplished by the committee and the report had been submitted to the Chief Engineer (I&FC), Jammu for onwards submission to the Administrative Department for final disposal of the claim. However, the further payment could not be made to the contractor because of non- availability of Accord of Administrative Approval.

7. As per these objections, an amount of Rs. 6,22,000/- is yet to be paid to the petitioner and the only reason for denial of payment of the amount is because of non-availability of Accord of Administrative Approval.

8. The

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