Entitlement to contractual dues is subject to verification of work completion and document submission.

The Petitioners, a proprietorship firm represented by Heramba Buragohain, were awarded a contract via NIT dated 03.12.2021 for the "Construction of Senior Citizen/Farmer’s waiting room at District Agricultural Office, Kamrup"

Following the Work Order dated 28.12.2021, the Petitioners completed the project using their own resources, and a completion certificate was issued by the Respondent Authorities on 03.02.2023

Despite submitting bills and multiple representations for the release of the contractual amount of Rs. 4,00,000/-, the Respondent Authorities failed to release the payment, prompting this writ petition

1. Whether the Petitioners are entitled to the release of pending contractual dues for successfully executed works

2. Whether the Court should direct the Respondent Authorities to verify the claims and process payment within a stipulated timeframe

The court applied the principle of administrative fairness and state liability in contractual obligations under Article 226 of the Constitution of India.

It emphasizes that when a citizen performs work for the State under a valid contract and completes it to the satisfaction of the authorities (evidenced by a completion certificate), the State has a legal duty to verify and discharge its financial liability without arbitrary delay

The Court noted that there was no denial by the Standing Counsel for the Agriculture Department regarding the issuance of the work order to the Petitioners

The Court reasoned that if the work was successfully executed as per the prescribed specifications and a completion certificate was issued, the Petitioners possess a legitimate right to receive the agreed-upon consideration

However, the Court observed that the precise entitlement is subject to administrative verification of the execution of work and the submission of requisite documents

Consequently, rather than adjudicating on the final amount, the Court found it necessary to direct a time-bound verification process to ensure the Petitioners' grievances are addressed

The Court held that if the Petitioners are found entitled upon verification, the Respondent Authorities must pay the dues

The entire exercise, including payment, must be completed within six months from the date of service of the certified copy of the order upon the Director of Agriculture, Assam