THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTING THE RESPONDENTS TO IMMEDIATELY RELEASE THE BALANCE AMOUNT OF RS.4,24,240/- TO THE PETITIONER FOR THE WORK COMPLETED UNDER WORK ORDER NO. 52/2018-19 DATED 18.01.2019, ALONG WITH INTEREST AT THE RATE OF 18 PERCENT PER ANNUM FROM THE DATE OF COMPLETION OF THE WORK TILL THE DATE OF PAYMENT WITHIN A SPECIFIC TIMEFRAME.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM

ORAL ORDER

Digitally signed VIKASA SOUDHA, by CHAITHRA A Location: HIGH COURT OF KARNATAKA

The captioned petition is filed seeking a direction against the respondents to immediately release the balance amount of Rs.4,24,240/- by taking cognizance of the completion of Work Order No.52/2018-19 dated 18.01.2019 as per Annexure-A.

2. Heard learned counsel for the petitioner and learned AGA for the respondents.

3. The petitioner participated in a tender process floated by the respondent–authorities and, upon due evaluation, emerged as the successful bidder. Consequent thereto, the petitioner was entrusted with the work of construction of “Samskruthi Bhavana”. It is specifically averred that a formal work order came to be issued in favour of the petitioner on 18.01.2019 for a total contract value of Rs.9,27,710.28/-. Pursuant to the issuance of the work order, the petitioner commenced and completed the entrusted work strictly in accordance with the terms and specifications stipulated in the tender document and to the satisfaction of the competent authorities.

4. The petitioner further asserts that upon completion of the project, the respondent–authorities conducted a spot verification and prepared the requisite checklist, culminating in the issuance of a work completion certificate dated 03.12.2019, which is produced at Annexure-B. The issuance of the completion certificate, preceded by due verification, unequivocally establishes that the work executed by the petitioner has been duly accepted by the respondents without any demur or reservation. In that view of the matter, the liability to release the contractual dues stands crystallized and is no longer in dispute.

5. However, despite completion of the work and certification thereof, the respondents have failed to discharge their corresponding contractual obligation of releasing the balance payment due to the petitioner. The petitioner has been constrained to issue legal notice and submit several representations calling upon the respondents to release the admitted amount. Notwithstanding the same, there is palpable inaction on the part of the respondent–officials. Such conduct, this Court observes, is wholly arbitrary and cannot be countenanced, as the State and its instrumentalities, being model employers and contracting parties, are expected to act fairly and honor their financial commitments, particularly when the execution of work is undisputed.

6. This Court is of the considered view that once the work entrusted under a valid contract is completed and duly certified by the competent authority, the respondents cannot be permitted to protract or withhold the payment of the contractual amount on untenable grounds or on account of administrative lethargy. Any such delay not only causes undue hardship to the contractor but also runs contrary to the principles of fairness and reasonableness that govern State action under Article 14 of the Constitution of India. The obligation to make timely payment is an integral part of the contractual relationship, and failure to do so, especially when the liability is admitted, warrants interference by this Court in exercise of its writ jurisdiction.

7. Having regard to the material placed on record and in light of the submission made by the learned AGA that the petitioner’s representations would be considered and appropriate action would be taken, this Court deems it appropriate to issue neces