Dina Nath Jha vs State of Bihar and Others

B.P. Singh, J.—Heard counsel for the parties.

It is most unfortunate that in all matters where contractors have executed works on behalf of the various Departments of the Government of Bihar they are compelled to move petitions in this Court for payment of their bills. This Court has taken consistent view that so far as the admitted dues are concerned they ought to be paid without delay and if there is any dispute with regard to any bill or part thereof, the concerned person should be informed of the reasons therefore so that he may seek remedy before an appropriate forum in accordance with law. I fail to understand what prevents the Government and its Departments from following the procedure which will avoid unnecessary litigation before this Court.

Let a copy of this order be sent to the Chief Secretary, Government of Bihar, so that he may communicate to all the concerned departments and direct them to act accordingly. If I find that this procedure is not being followed and contractors-are compelled to move this Court even for consideration of the claim by the Government and payment of admitted liability, heavy cost will be imposed against the State to be recovered from the officers for whose laches payments are not made.

So far as this case is concerned, Respondent No. 3 is directed to consider the claim of the Petitioner and to take a final decision in the matter within three months. If the claim of the Petitioner is admitted either in whole or in part the admitted dues shall be paid to the Petitioners within the period prescribed in this order. If, however, the claim or any part thereof is disputed, the Petitioner shall be informed of the reasons therefore in writing so that he may thereafter seek remedy before an appropriate forum in accordance with law. This should also be done within the same period. If the payment is not made to the Petitioner of the admitted dues within the period prescribed, he shall be entitled to payment of interest, at the rate of 16% per annum to be calculated from the last date of payment envisaged by this order. This petition is accordingly, disposed of.