Case Note & Summary
The petitioner, a Class-I PWD Contractor, filed a writ petition under Articles 226 and 227 of the Constitution of India seeking a writ of mandamus to direct the respondents to release the balance bill amount of Rs. 19,18,781/- for contract work executed under Scheme H/A No.3054 Roads & Bridges (Non-Plan) Special Repairs for the years 2000-01 to 2003-04. The petitioner had executed the work and submitted a final bill, which was accepted by the respondents. However, the respondents retained the balance amount without any justification or notice. The petitioner contended that the respondents have no right to retain the amount after acceptance of the final bill. The respondents, represented by the Additional Government Advocate, did not file any statement of objections. The court, after hearing the petitioner's counsel, observed that the respondents had not issued any notice to the petitioner before retaining the amount, and no justification was offered for the retention. The court held that the respondents cannot retain the amount without any notice or justification, and directed them to release the balance bill amount of Rs. 19,18,781/- within six weeks from the date of receipt of the order. The writ petition was allowed.
Headnote
A) Constitutional Law - Writ of Mandamus - Right to Payment - Articles 226 and 227 of the Constitution of India - The petitioner, a contractor, sought direction to respondents to release balance bill amount for work executed under a scheme. The court held that the respondents cannot retain the amount without any notice or justification, and directed payment within six weeks. (Paras 1-4)
B) Administrative Law - Principles of Natural Justice - Unilateral Deduction - The respondents deducted amounts from the final bill without issuing any notice or providing an opportunity to the petitioner. The court held that such unilateral action is arbitrary and violative of natural justice. (Para 3)
Issue of Consideration
Whether the respondents can retain the balance bill amount of the petitioner without any notice or justification, and whether a writ of mandamus can be issued directing payment.
Final Decision
Writ petition allowed. Respondents directed to release the balance bill amount of Rs. 19,18,781/- within six weeks from the date of receipt of the order.
Law Points
- Principles of natural justice
- right to payment for work done
- unilateral deduction without notice
- writ of mandamus
- Article 226
- Article 227
Case Details
2014 LawText (KAR) (01) 21
Writ Petition No.361/2014 (LB-RES)
Sri K.T. Gurudev Prasad (for petitioner), Sri H.T. Narendra Prasad (AGA for respondents)
State of Karnataka, Department of Rural Development and Panchayatraj; State of Karnataka, Finance Department; The Chief Executive Officer, Zilla Panchayat, Bangalore Urban District; The Executive Engineer, Zilla Panchayat, Bangalore Urban District
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Nature of Litigation
Writ petition seeking mandamus for payment of balance bill amount for contract work executed.
Remedy Sought
Direction to respondents to release balance bill amount of Rs. 19,18,781/-.
Filing Reason
Respondents retained balance amount after acceptance of final bill without notice or justification.
Issues
Whether the respondents can retain the balance bill amount without any notice or justification?
Whether a writ of mandamus can be issued directing payment of the balance amount?
Submissions/Arguments
Petitioner's counsel contended that respondents have no right to retain the balance bill amount after acceptance of final bill.
Respondents did not file any statement of objections or offer justification for retention.
Ratio Decidendi
The respondents cannot retain the balance bill amount without any notice or justification. The unilateral deduction without affording an opportunity to the petitioner is arbitrary and violative of principles of natural justice. Hence, a writ of mandamus is issued directing payment.
Judgment Excerpts
The petitioner is a Class-I PWD Contractor. He has filed this writ petition, to issue a writ of mandamus and direct the respondents to pay the balance bill amount of `19,18,781/- for the work executed by him.
The respondents have not issued any notice to the petitioner before retaining the amount. No justification is offered for retention of the amount.
In the absence of any notice and justification, the respondents cannot retain the amount. Hence, the writ petition is allowed.
Procedural History
The petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India. The petition came up for preliminary hearing before the High Court of Karnataka at Bangalore on 30th January 2014. The respondents were represented by the Additional Government Advocate but did not file any statement of objections. The court heard the petitioner's counsel and passed the order allowing the petition.
Acts & Sections
- Constitution of India: Articles 226, 227
