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HIGH COURT OF DELHI
W.P.(C) 2706/2023
Date of Decision: 27.03.2023 IN THE MATTER OF:
M/S S N MALHOTRA AND SONS .... Petitioner
Through: Ms. Anusuya Salwan, Advocate
Through: Mr. Siddhant Nath, Standing Counsel.
JUDGMENT
1. By way of present petition filed under Article 226 of the Constitution of India, the petitioner has sought release of payments due and payable to it under the bills prepared and approved by respective Assistant Engineer(s) and counter-signed by Junior Engineer(s) of the erstwhile Corporations against the work executed by it. Alongwith the petition the petitioner has annexed the relevant letter of enlistment.
2. Ms. Anusuya Salwan, learned counsel appearing for the petitioner submits that the facts of the present case are squarely covered by the decision rendered by this Court in W.P.(C) No. 116/2021 titled as Garg Construction Company v. North Delhi Municipal Corporation.
3. On 02.03.2023, while noting the submissions on behalf of the petitioner, notice was issued to the respondent. Learned Standing Counsel for the respondent accepted notice and sought some time to obtain instructions. Thereafter, the matter was listed on 20.03.2023 and 23.03.2023 when some more time was sought on behalf of the respondent to obtain instructions.
4. Today, learned counsel for the petitioner submits that even after taking ample opportunities, the respondent has failed to point out as to why the present petitioner is not covered by the decision rendered in Garg Construction (Supra). Learned Standing Counsel for the respondent has however disputed the bill with respect to Work Order No. 135 dated 30.03.2016 in respect of M1-KBZ allegedly passed on 30.12.2019 for a gross value of Rs.7,67,159/-.
5. A perusal of the decision in Garg Construction (Supra) would show that after considering the fact that the bills were duly prepared and approved by the respective Assistant Engineer(s) and counter-signed by Junior Engineer(s), and further in view of the fact that the respondent had come out with a policy decision to release the payments towards the principal amounts to similarly placed persons, this Court had observed as under:-
6. While referring to the decision of Co-ordinate Bench of this Court in North Delhi Municipal Corporation and Anr. v. Sanjeev Kumar reported as 2018 SCC OnLine Del 8053, this Court in Garg Construction (Supra) held as under:-
contractor who has duly executed tendered works and whose bills have been approved.
12. Moreover, the summary of outstanding dues/arrears of principal amounts placed on record by the petitioners has not been disputed by the Corporation, the relevant bills having been prepared and approved by officials of the Corporation itself.
13. Accordingly, the present petitions are allowed and the Corporation is directed to release payments due towards principal amounts to the petitioners, against verified and approved bills, within a period of eight weeks from the date of passing of this judgment. So far as the petitioners’ prayer for interest on delayed payments is concerned, they may pursue their remedy by initiating appropriate proceedings in accordance with law.
14. It is clarified that the present petitions are entertained and disposed of in the peculiar facts and circumstances, where the Corporation has taken a conscious decision to release the payments."
7. In view of the fact that except for one bill, the respondent has not been able to point out any fact regarding inapplicability of the aforesaid decision to the other bills, the present petition is disposed of with the direction that principal amounts against the verified and approved bills of the petitioner be paid by the respondent within a period of eight weeks from today. Petitioner shall be at liberty to initiate appropriate proceedings for recovery of interest in accordance with law.
JUDGE MARCH 27, 2023