Improper withholding of payment post-construction without timely notice of defects violates contractual obligations.

JUDGMENT

The petitioner is the proprietor of M/s. Antos Constructions, and is a contractor. The petitioner had undertaken the construction work of a multipurpose hall for the respondent Nos. 2 and 3, as per the administrative sanction accorded by the 5th respondent to the 4th respondent. Exhibit P5 is the agreement dated 24.04.2018 executed by the petitioner with the 1st respondent, the consultant appointed by the Government in this regard. The said agreement was entered into, in acceptance of the tender submitted by the petitioner in response to the notification published by the 1st respondent in this regard. The petitioner had carried out the work, and Ext.P7 is the completion report. Exhibit P7 would indicate that the date of completion was on 29.08.2018, and the building was taken over by the Principal Government College of Nursing, the 2nd respondent herein, on

29.01.2019.

2. However, as the amounts payable to the petitioner, based on the bill prepared in this regard were not released, the petitioner has approached this Court seeking the following reliefs:

i. To issue a writ of Mandamus or any other appropriate writ, order or direction to the 2nd respondent to comply with Ext.P15 and pay the amount of Rs.27,18,308/- with interest at the rate of 18% towards the final settlement of account in respect of Ext.P4 work order and P5 agreement forthwith.

ii. To declare that the petitioner is entitled receive the final bill from the 2nd respondent with interest forthwith in view of Ext.P15.

iii. To issue such other appropriate writ, order or direction as deem fit and proper in the facts and circumstances of the case.

iv. The petitioner prays that this Hon’ble court may be pleased to dispense with the translation of the documents produced in the vernacular language, 3. Pending consideration of this writ petition, the respondents have released certain payments, and Ext.P18 order passed by the 2nd respondent would indicate that, out of the final bill of Rs.39,39,088/- (thirty-nine lakh thirty-nine thousand eighty eight only), Rs.10,00,000/- was withheld as per an order dated 22.02.2024 (Ref.No.5 in Ext.P18) issued by the Government. Thus, what remains to be paid as per the claim of the petitioner is Rs.10,00,000/-, which is already withheld by the Government.

4. A counter affidavit was submitted by the 1st respondent, where, the sequence of events with regard to the awarding of work, completion of work, and the inspections conducted by the authorities concerned in connection with the necessary approval granted for the work, were highlighted. A statement was also submitted by the 2nd respondent in response to the averments contained in the writ petition.

5. I have heard Smt. M. Kabani Dinesh, learned counsel for the petitioner, and Smt. Molly Jacob, learned standing counsel for the 1st respondent, and Smt. K.G. Sarojini, learned Government Pleader appearing for the respondent Nos. 2 to 5.

6. What now remains to be considered is the non payment of Rs.10Lakhs as evidenced by Ext. P18. The said amount was withheld acting upon the Government Order issued in this regard, by which, the 2nd respondent was instructed to withhold the said amount. It is pointed out that, as per the documents, it was intimated by the respondents that the building constructed by the petitioner had certain defects, and it was on account of the same that the deduction was made. However, the crucial aspect to be noticed is that, the work was completed on 29.08.2018. After the completion of the work, the Chief Engineer, NHM (National Health Mission), who is the member of the technical committee, conducted an inspection of the building and issued Ext.R1(b) on 24.11.2018, certifying that the construction was finished sa