Entitlement to outstanding contract dues is subject to verification of work execution and submission of documents.

The petitioners, a registered contracting firm and its proprietor, were allotted work related to the Bowalguri ITI COVID Care Centre in Morigaon district via a work order dated 20.05.2021

The petitioners completed the works—specifically supplying diet and other requirements—and submitted bills totaling Rs. 56,07,016.92/-

While the respondent authorities (Health and Family Welfare Department, Assam) released a partial payment of Rs. 12,73,821/-, an outstanding balance of Rs. 43,33,195.92/- remained unpaid

The petitioners approached the High Court seeking a direction for the release of the remaining dues.

Whether the petitioners are entitled to the release of the outstanding payment for works executed during the COVID-19 pandemic subject to administrative verification

The Court applied the principle of contractual liability of the State and the right to receive payment for completed work under Government contracts.

The State is obligated to discharge its financial liabilities upon the successful execution of allotted works and submission of requisite documentation, aligning with the doctrine of administrative fairness requiring the State to verify and clear admitted or verifiable dues in a time-bound manner.

The Court noted that the respondent authorities did not deny the issuance of the work order to the petitioners

The Standing Counsel for the Health Department submitted that the petitioners' entitlement was contingent upon a formal verification process

The Court reasoned that if the petitioners had successfully completed the assigned work (supplying diet and other requirements), they possess a legitimate claim to the stipulated amount

The Court determined that the actual disbursement must be preceded by an administrative audit to confirm the successful execution of work and the sufficiency of the submitted documentation

It held that if the petitioners are found entitled to the dues upon verification, the respondents must release the payment, with the entire exercise to be completed within six months from the date of receipt of the certified order