J U D G M E N T

The petitioner is aggrieved by Ext.P3 order of the Ombudsman for Local Self Government Institutions, the 1st respondent herein. The 2nd respondent is a contractor firm that has constructed a Community Hall cum Shopping Complex for the petitioner in the year 2009. Towards the construction cost, the 2nd respondent submitted a final bill for Rs.87,34,576/-. Out of the said amount, an amount of Rs.75,24,295/- has been paid to him at different points of time. The balance amount of about Rs.12 lakhs is still remaining due and payable to the Contractor. According to the petitioner, because of the fact that various constructions were undertaken during the previous years, a spill over liability of Rs.2,23,31,767/- has accumulated. As a result, payment of the balance amount could not be effected, till date. All the above facts have been intimated to the 2nd respondent also, it is submitted. The Panchayat incurs more than Rs.70 lakhs every year towards establishment charges, honourarium etc. Amounts have to be found for developmental activities also.

The bill amount could not be paid due to financial stringency. It was in the above circumstances, that the 2nd respondent had mov