Charanjeet v. North Delhi Municipal Corporation

1 This order shall dispose,ofthisrbatch ofwrit petitions.

2 At the outset, it is..pointed'dufhEat a bunch of similarly placed contractors had|llle<L':dertadh^'siTfe''\^i(^ in their favour against which a'feigular EiiftCO^ppeal;->n been filed. That Regular First Appeal had been disposed of by a Single Bench ofthis Court on 01.12.2016(RFA No.786/2016); it was based on the consent i order dated 17.11.2016 arrived inter-se the parties This Court notes that these writ petitions arise out of[the 2017:DHC:8335 Corporation. All the petitioners are duly registered contractors registered with the respondent Corporation and have been carrying out various works of the respondent. The petitioners having completed the said works to the satisfaction ofthe respondent for which bills had i been prepared and certified but complete payment not having been received by the petitioners had accordingly been constrained to file these petitions. Contention of the petitioners being that they 'are claiming only.,thoso bills whick'-had been dulypcertified for payment and for whichufo'amountiik^^dfe^ %:...

4 The stand ofthe respondent was that there is a specific clause in the agreefnent which is bindin:gupdn.;fhe parties and which was to the ^ effect that rhe payinOnt b|the> be subject to the availability ofltods.'in.:p^ipulnr--"h^a4^f apebuht from time to time and the payments shall be made strictly on queue basis i.e. first the past liabilities will be cleared and after the release of payments for past bills only then the ease of the petitioners would be considered; interest would also not be payable.

5 The relevant extract of Clause 7 ofthe 'General Conditions of Contract for Municipal Corporation of Delhi Works' highlighted by I the respondent Corporation is reproduced herein as under:- "The payment ofpassed bills will be subject to availability offunds in particular ^ head ofaccountfrom time to time in MCD. Payment ofbills shall be strictly on Queue basis i.e.first the past liabilities will be cleared and after that the release ofpaymentfor passed bills be in order ofthe demandreceived atHQ underparticular head ofaccounts. No interestshall be payable to the.eondWcfor inpase ofdelay in payment on account of non-availability offunds in the,particularfie,ad of'apcgunt-ofMCD." \

6 This beiiigvthe stand.of.'the/rbspQndenf'Cb^ the petition had progre^sedjand the up fpnfinhl hearing.:

7 However,at this sta^ejlasiirib^fed'supra, attention|bfthis Court has been drawn to the ju^gm|nt"p'a^^^^^ by the Single|bench ofthis Court in RTA NQ.=,'78i6/^d-l^?:iltld^-I^A^ out of decrees which had enuredThTavQunpfsuclihke pQntractors who had preferred to file civil suits instead offiling'Wit petitions.

8 In the course ofthese proceedings on 07.09.2016,the additional submission ofthe respondent was noted which was that the payments being asked for by the petitioner are under'non-planned head' and the petitioner will have to stand in queue along with'others; submission of i planned head' and the money under the 'non-planned head' is being mis-used i.e. for purpose other than those purposes for which it is required to be used. The respondent had been directed to place on record an affidavit stating the amounts expended in the 'non-pianned head'. This affidavit is on record and the details of money sought to be expended in the'non-planned head'have been given.

9 Court is ofthe viewThat-theiordefspassed,.in RFA No.786/2016 this Court is,6fthe view,thatitlieselpetitions cahmlsp be disposed off on the same temis and conditiqns.iahfhere is no dispititd|o the factithat the case 6fthese petitionershssimilhr to those who were/parties in the / f T,/ ft 5' RTA.

10 The terms of the cohserit'ofher.passed reproduced in RFA Nb;,$86/2016 readtasir ''

(i) The appellants shallfilefresh compilations, complete in allrespects in respectofthe respondents and the other contractors, irrespective of whether they have flea any appeals/suits ofrecoveiy or not, so that there is a clarity about their priority in the list. wait

(ii) The appellants undertake to strictly adhere to the timeline mentioned in the compilation,for releasingpayments to the respondents. !

(iv) The appellants shall ensure that the budgetfor release ofamounts under the head of Non-Plan Expenditure Is increased on a regular basisso that the release ofpayments can be expedited to the respondents and other contractors in the wait list, even prior to dates ofpriority mentionedagainsttheir names. the

(v) The appellants shall upload the compilation on their websitesfor ease ofaccess and update it regidarly at the end ofeach monthfor the respondents and others to knoM'.what their status is in the wait list.

(vi) Having regard to thefact that the appellants expect the respondents to stay their hands and not pursue their legal remediesfor execution ofthe impugnedjudgments and decreesfor a period mentioned'hereinafter, it is agreed,that interest shall be payable to the respondents on the principal amount after th.e expiry ofthree years and ninety days reckonedfrom theHatethe cdncernedHWision hadpass'ed:ihe:,jbillsg)fthe respondentsfor payment.In otljer \fbr.ds, acushion of90days isj>e.ingprovided to the Head Quarters of both the appellantsyfor coinpletihgytheiadmimstrative workoffeceiyiri^and diarising\the bills receivedfronfdifferentDivisions,and'preparmgacombinedlistfoifpaymentand it is agreedthatfor the saidperiod, no interestshall.bepayable to the respondents.

(vii) It is further agreed that thcfqppellahfsj^nll not be liable to pay interest on the principal amounts payable:.toTihef\msp(y^ehij^.dnder impugned judgments and decrees, for a'-period -of three years-mckldhedfhmfhf' ddte of expiry of 90 days mentioned above."n n " n • • I