Non-Adherence Of Codal Formalities No Ground To Deny Contractor's Dues After Work Completion: Jammu & Kashmir High Court
The Jammu and Kashmir and Ladakh High Court has recently said that the Government cannot deprive a contractor of his dues after work completion, by raising a plea that codal formalities at the time of allocation of the work had not been not adhered to.Justice Sanjay Dhar said that the adherence to codal formalities is an internal mechanism of the Department and once they had allotted a...
The Jammu and Kashmir and Ladakh High Court has recently said that the Government cannot deprive a contractor of his dues after work completion, by raising a plea that codal formalities at the time of allocation of the work had not been not adhered to.
Justice Sanjay Dhar said that the adherence to codal formalities is an internal mechanism of the Department and once they had allotted a contract for which work had been executed, they were bound to release the dues in favour of the contractor for the work done.
It was held:
“If the officers concerned have not adhered to the codal formalities, the respondents are at liberty to take action against them but in no case they can withhold the payment of the petitioner who has executed the work to the satisfaction of the respondents and has incurred expenses out of his own pocket. The non-availability of funds with the respondents cannot offer them a ground to deny payment to the petitioner. If the funds were not available then respondents should not have allotted the work in favour of the petitioner. Once the work has been allotted and same has been executed by the petitioner, there is no justification for the respondents to deny his dues on flimsy grounds”.
These observations came while hearing the plea filed by an A-Class contractor seeking a direction upon the respondent Government department to release an amount of Rs.55,71,345/- in his favour for having executed the work of improvement/upgradation of Satellite Colony roads (phase II).
The petitioner submitted that he had completed the work within the stipulated time and raised the bills to State respondents in 2017-2018. He further submitted that only about 40% of the amount due had been released in his favour.
While deciding the plea, the bench noted the stand of the respondents that since codal formalities were not adhered to while allotting work to the petitioner, the requisite funds had not been allotted.
Court said the petitioner could not suffer due to the Department's non-adherence to codal formalities and thus directed the respondents to release the balance sum in favour of the petitioner, within two months.
Case Title: M/S FAROOQ AHMAD MIR Vs UT OF J&K AND ORS
Citation: 2023 LiveLaw (JKL) 298