Gauhati High Court Seeks State's Response On Amount Of Money Loaned To First-Time Entrepreneurs In Plea Over Non-Payment Of Dues To Tenderer

The Gauhati High Court recently asked the Assam Government to apprise it as to the money used by the State with regard to loans being given to first-time entrepreneurs.

The said direction was passed by a single judge bench of Justice Michael Zothankhuma in a writ petition filed by a person regarding non-payment of the dues after an action to de-hire the premises was taken by State authorities, which was provided by the petitioner pursuant to a Notice Inviting Tender (NIT) to open Foreigners Tribunals.

The case of the petitioner is that the tenure of the period was five years and prior to the expiry of the same, the state authorities have taken action to de-hire the same.

In an earlier order dated August 16, 2024, the Court had directed the authorities to clear the petitioner's bills by September 30, 2024, as the petitioner's claim was an admitted amount.

The Counsel appearing for the State submitted that a letter dated September 30, 2024, issued by the Joint Secretary to the Government of Assam, Home and Political Department, which is to the effect that sufficient budget provision not being available, the file is under process for making partial payment within the fund available in the budget. It was further submitted that a file has also been processed for obtaining an advance from the contingency fund towards making payment of the outstanding balance amount.

The Senior Counsel appearing for the petitioner submitted that there can be no justification for not paying the admitted dues of the petitioner when the Government has been giving freebies amounting to crores and crores of rupees.

The Court observed:

“On considering the fact that newspaper reports have shown that the Government has been giving loans to over 25,238 aspirants amounting to Rs.2 lakhs, out of which 1 lakh is to be given free, this Court is of the view that there can be no justification for not clearing the petitioner's dues in terms of the earlier order passed.”

Thus, the Court directed the Counsel appearing for the State to obtain instructions by the next date as to the money used by the State Government with regard to loans being given to first-time entrepreneurs, as has been reflected in the newspaper article dated October 01, 2024, in the Assam Tribune newspaper.

“List the matter on 20.11.2024, by which date the petitioner should have been paid his dues,” the Court said.

Case Title: Rishi Gupta v. The State of Assam & 12 Ors.

Case No.: WP(C)/2220/2023

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