Facts of the Case

M/s Anil Buildcon (India) Private Limited, a Bilaspur-based construction firm, sought a direction against the Public Works Department, State of Chhattisgarh, to release payment due for a completed construction work, which the petitioner said included an amount towards GST that remained unpaid.

The respondents, in their reply, enclosed a work-completion certificate dated 20.09.2019 which did not dispute the nature of the work performed, its quality, or quantity. The respondents' stand was that some extra work beyond the awarded scope had also been executed, crossing the budgetary allocation, for which administrative sanction was being processed.

Given that the tender was floated by, and the work was executed under the supervision and control of, the respondents, and there was no dispute over the completed work itself, the Court directed release of the undisputed amount.

Issues Involved

  1. Whether the petitioner-contractor was entitled to a direction for release of payment due for completed work, including the GST component, in the absence of any dispute over the work's completion or quality.

Petitioner's Arguments

  • The work awarded under the tender had been duly completed, and payment — including the GST component embedded in the bill — remained unpaid despite completion.

Respondent's Arguments

  • The respondents did not dispute the quality or quantity of work completed, but noted that additional/extra work executed had exceeded the budgetary allocation, requiring administrative sanction before full settlement.

Court Order / Findings

  • The Court noted there was no dispute regarding the nature, quality, or quantity of the work completed by the petitioner.
  • Since the tender was floated by, and the work executed under the supervision of, the respondents, the writ petition was disposed of directing the respondents to consider the petitioner's claim in accordance with law and release the undisputed amount within four months.

Important Clarification

This order does not decide any GST-law question — GST is simply one component of the contract amount the contractor says remains unpaid. The Court's direction is limited to timely release of the undisputed portion of dues, leaving any genuinely disputed amount (such as the extra work requiring sanction) to be resolved separately.

Sections Involved

  • Constitution of India, 1950 — Article 226 (writ jurisdiction over contractual payment disputes with a state instrumentality)

Decision – In Favour of

Decided substantially in the petitioner's favour — the respondents were directed to release the undisputed amount within four months, though the Court did not adjudicate the disputed extra-work claim.

Case Details

  • Court: High Court of Chhattisgarh, Bilaspur
  • Case No.: WPC No.168 of 2023
  • Coram: Hon'ble Shri Justice Parth Prateem Sahu
  • Date of Order: 31.10.2023

Link to Download the Order

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