Disputed contractual dues must be verified by respondent authorities and settled per Tamsher Ali guidelines.

The Petitioner, a registered Class I-C Contractor, was awarded a work order on 03.01.2018 for the construction of a Brick Lined Field Channel and Earthen F.C. under the CADWM Programme for the year 2016–17 at an approximate value of Rs. 4,50,000/-

The Petitioner claims to have successfully completed the project and submitted bills totaling Rs. 4,12,606/-; however, the Respondent Authorities paid only Rs. 3,01,921/-, leaving an outstanding balance of Rs. 1,10,685/-

Despite several representations, the payment remained pending, prompting the Petitioner to file this writ petition under Article 226 of the Constitution of India

1. Whether the Respondent Authorities are liable to release the outstanding balance of Rs. 1,10,685/- to the Petitioner for works completed under the relevant work order

2. Whether the court should direct a time-bound verification of the Petitioner's claims and subsequent payment in accordance with established legal precedents

The court primarily relied on the legal principles governing the settlement of outstanding dues by State departments as established by the Full Bench of the Gauhati High Court in Tamsher Ali and Others v. State of Assam and Others [2008 (4) GLT 1], which mandates specific procedures and priority for the payment of admitted contractual liabilities by the State

The court noted the Petitioner's contention of full performance against the work order and the Respondents' stance that the actual entitlement is a matter of factual verification

Rather than adjudicating on the disputed facts of completion and exact quantum, the court determined that the interest of justice would be served by directing the Respondent Authorities to conduct an internal verification

The court reasoned that if the Irrigation Department (Respondents 1, 3, and 5) finds the Petitioner's claim to be valid upon verification of the work order and completion status, the State is legally obligated to process the payment following the seniority/priority guidelines laid down in the Tamsher Ali precedent

The Court ordered that this verification process be completed within one month of receiving a certified copy of the order

If the Petitioner is found entitled to any amount, the Respondents are directed to release the payment in accordance with the judgment in Tamsher Ali and Others v. State of Assam and Others