High Court Slaps Rs 50K Cost On Haryana Govt, Flags "Routine Practice" Of Not Releasing Payment Due To Contractors

The Punjab and Haryana High Court has reprimanded "routine practice" of the Haryana government authorities in not releasing the payments due to contractors unless there is an intervention from the court.

While imposing a cost of Rs. 50,000 on Haryana's Public Works Department, the bench of Justice Vinod S. Bhardwaj observed, "this Court would like to express its anguish and concern towards the act and conduct of the respondents in unreasonably withholding the legitimate and admissible dues of the contractors."

Court said every week it receives an average of 10-15 cases only for seeking release of undisputed liability and in many such cases, the government has already admitted its liability but expresses inability to release the same for paucity of funds.

"The contractors have to knock at the doors of this Court for seeking release of their admissible dues for no fault on their part, which escalates their financial burden and creates unnecessary litigation," it added.

The writ petition was filed seeking direction to the Executive Engineer, Panchayati Raj, Public Works, Haryana, to release the payment of running bill of one Shashi Bhushan alongwith 18% interest from the date of bills till actual realization.

The counsel for petitioner contended that despite having completed the allotted work well within the prescribed time, the respondents have withheld the legitimate dues of the petitioner.

After hearing the submissions, the Court noted that the parties have consented and it thus directed the authority concerned to treat the present petition as a representation and decide it within three months.

However, while parting, the Court expressed disapproval of such "routine practice" of the government and deemed it fit to impose costs, to be deposited with the Poor Patients Welfare Fund, PGIMER, Chandigarh.

Mr. S.S. Chhoker, Advocate for the petitioner.

Title: SHASHI BHUSHAN v. STATE OF HARYANA AND ORS.

2024 LiveLaw (PH) 204

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