Admitted Dues Cannot Be Withheld by the State on Grounds of Technical System Errors

The petitioners, Brijnandan Prasad and Kulendra Singh, filed a writ petition seeking a direction for the payment of outstanding dues for construction materials supplied under 12 MGNREGA schemes

The petitioners alleged that the payments were withheld due to their refusal to pay illegal gratifications demanded by local officials

The respondents, via a counter affidavit filed by respondent Nos. 2 to 4, admitted that while 8 schemes had been paid, bills for 4 schemes remained outstanding due to "technical errors of the system"

Specifically, the state admitted a liability of Rs. 57,378/- to Petitioner No. 1 and Rs. 10,30,417/- to Petitioner No. 2

Whether the respondent authorities are legally obligated to release admitted outstanding dues that have been withheld solely on the grounds of technical system errors

The court applied the principle of administrative accountability and the doctrine of admitted liability, holding that a state authority cannot withhold payments for work completed and materials supplied once the debt is formally acknowledged

The court emphasized that internal administrative or technical failures of the State’s infrastructure do not absolve the government of its contractual and statutory obligations to pay citizens for services rendered

The court focused on the respondents' admission of liability in paragraph 6 of their counter affidavit, where they categorized the specific amounts due to each petitioner

The court reasoned that since the work and supply of materials were not in dispute and the liability was explicitly admitted, the justification of a "technical error" was insufficient to deny the petitioners their dues

The Court held that the responsibility for maintaining an efficient payment system lies solely with the respondent authorities, and the petitioners should not be penalized for the system's failure to disburse funds

The writ petition was allowed, and the Court directed the respondent authorities to pay Rs. 57,378/- to Petitioner No. 1 and Rs. 10,30,417/- to Petitioner No. 2 within two months from the receipt of the order

Any pending interlocutory applications were disposed of accordingly