Mandamus to verify and release outstanding contract payments and security deposits upon project completion.

The Petitioner, a Class-1(A) contractor, was awarded a work order on 10.10.2012 for the "Development of Margherita–Deomali Road" under the Social and Infrastructure Development Fund (SIDF)

The Petitioner completed the work on 10.11.2015, and a Completion Certificate was issued by the Executive Engineer, PWD, Tinsukia, certifying 100% physical progress

A Liability Statement issued on 30.06.2020 by the PWD acknowledged an outstanding balance of ₹13,08,014/- plus a security deposit of ₹12,05,309/-

Despite submitting a representation and a legal notice under Section 80 of the CCP, the Respondent Authorities failed to release the payment

The PWD contended that the completion of work and exact entitlement are subject to further verification

1. Whether the Petitioner is entitled to the immediate release of outstanding contract payments and security deposits for completed works

2. Whether the court should direct the respondent authorities to verify and pay the admitted liabilities within a specific timeframe

The court applied the principle of prompt payment for completed government contracts 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 governs the procedure and priority for discharging outstanding liabilities of the State Government

The court also implicitly relied on the contractual obligations arising from the work order and the official Liability Statement issued by the Executive Engineer

The court evaluated the Petitioner’s claim based on the documented completion of the project and the State’s own Liability Statement.

While the Petitioner presented evidence of 100% completion and a specific outstanding amount, the PWD argued that entitlement must still be verified through internal processes.

The court reasoned that justice would be served by mandating a time-bound verification process.

It determined that if the work was indeed found to be in accordance with the contract upon verification, the State has a legal obligation to release the funds and return the bank guarantees in accordance with the seniority/priority guidelines laid down in the Tamsher Ali precedent.

The Court ordered that this verification be completed within one month of receiving a certified copy of the order. If found entitled, the Respondents are directed to pay the outstanding amounts following the principles in Tamsher Ali v. State of Assam and return the Petitioner's bank guarantees.