Mandamus to verify and release undisputed contractual dues for completed works within a specified timeframe.

The Petitioner was awarded a contract by the Indian Oil Corporation Ltd. (IOCL) for "ARC repair and maintenance of buildings in Township" via Work Order No. 24176296 dated 11.06.2014

The Petitioner asserts that the work was successfully completed on 30.11.2015 within the stipulated timeframe

Subsequently, the Petitioner submitted claims totaling Rs. 58,85,000/-, comprising final bill amounts, held-up dues, retention money, and security deposits

Despite multiple representations and reminders sent between 2018 and 2021, the respondent authorities failed to release the pending contractual dues, prompting the Petitioner to file this writ petition under Article 226 of the Constitution

1. Whether the Petitioner is entitled to the release of unpaid contractual dues and security deposits for the work executed under Work Order No. 24176296

2. Whether the Court should direct the Respondent Authorities to conduct a verification process to determine the exact liability owed to the Petitioner

The court applied the principle of administrative fairness and the obligation of State instrumentalities to settle undisputed contractual dues upon the successful execution of work.

It relied on the doctrine that if an individual has completed work as per agreed terms and conditions, the state or its agencies are duty-bound to verify and discharge the legitimate financial entitlements of the contractor

The Court examined the Petitioner’s claim regarding the completion of the "ARC repair and maintenance" work and noted the Respondent IOCL's stance that any entitlement would be subject to official verification

The Court reasoned that the primary prerequisite for payment is the successful execution of the contract and the submission of requisite documentation

Since the respondents did not explicitly deny the execution of work but insisted on verification, the Court determined that the proper remedy was to mandate a time-bound administrative review of the claims

The Court bridged the gap between the Petitioner’s demand for payment and the Respondent’s need for compliance by directing a structured verification process to establish the Petitioner's legal entitlement to the specific sums claimed

The Court held that if the Petitioner is found entitled upon verification, the Respondents must release the payment. The entire exercise must be completed within three months from the date of service of the certified copy of the judgment upon Respondent No. 2