M/S Joganiar And Anr vs. The Mising Autonomous Council And Anr
Original PDF →Facts
The petitioner, M/s Joganiar and Anr (a proprietorship concern), filed a writ petition seeking the release of an outstanding amount of Rs. 2,71,420/-. This amount is part of a total bill of Rs. 66,37,500/- for the supply of 500 Steel Almirahs to the Mising Autonomous Council (respondent). The petitioner was awarded the work pursuant to an NIT dated 02.09.2016. The respondent council had already released Rs. 63,66,080/- in two installments. The petitioner contended that the remaining amount of Rs. 2,71,420/- had not been released despite several requests. The respondent council, through its Principal Secretary, acknowledged the supply of almirahs and the part payment made. They stated that the remaining amount could not be paid as it exceeded the original budget (AOP) and that the tax regime had changed to GST by the time of actual supply, with the petitioner adding CGST and SGST to the bill.
Held
The Court held that the claim amount of Rs. 2,71,420/- was not disputed by the respondents, save for the fact that it exceeded the approved budget (AOP). The Court noted that there was no dispute regarding the supply of 500 Steel Almirahs as per the NIT. Given that the supply was admitted and the claim amount was not disputed in substance, the Court deemed it appropriate to direct the Mising Autonomous Council to release the admitted outstanding bill amount. The reasoning was based on the absence of a dispute concerning the goods supplied and the admitted nature of the outstanding claim. The ratio decidendi is that admitted contractual dues for goods supplied should be released even if there are internal budgetary constraints or changes in tax regimes, provided the supply is not in question. The Court directed the respondent Nos. 1 & 2 to release the admitted outstanding amount of Rs. 2,71,420/- within one month from the date of the order. It was further clarified that if the amount is not released within this period, it shall carry interest at 9% per annum until final payment.
Key Issues
1. Whether the Mising Autonomous Council is liable to release the admitted outstanding amount of Rs. 2,71,420/- to the petitioner for the supply of Steel Almirahs, despite the amount exceeding the original budget (AOP) and the introduction of GST? (Question of law and fact, concerning contractual obligations and payment procedures). Petitioner's contention: The petitioner argued that the amount claimed is admitted and relates to the supply of goods as per the contract. They sought a direction for the release of this outstanding sum. Respondent's contention: The Mising Autonomous Council argued that the payment of the remaining Rs. 2,71,420/- could not be made because it exceeded the approved budget (AOP). They also noted that the tax regime had changed to GST by the time of supply, and the petitioner had included CGST and SGST in the total bill of Rs. 66,37,500/-. The part payment of Rs. 63,66,080/- was made due to available funds before the tax regime change.
Sections Cited
CGST, SGST
AI-generated summary — verify with the full judgment below
Before: HON’BLE MR. JUSTICE KARDAK ETE
2024. Heard Mr. R. Sensua, learned counsel for the petitioner. Also heard Mr. D. Gogoi, learned Standing Counsel for the Mising Autonomous Council appearing for the respondents.
By filing this Writ Petition, the petitioner has prayed for a direction to release the outstanding amount of Rs.2,71,420/- (Rupees two lakh seventy one thousand four hundred and twenty) only, out of total amount of Rs.66,37,500/- (Rupees sixty six lakh thirty seven thousand and five hundred) for execution of work of supply of Steel Almirah, to the office of the Mising Autonomous Council.
The petitioner is a proprietorship firm engaging in various contractual works under different authorities of the State. Pursuant to the NIT No.MQC/684/2016-17/8057, dated 02.09.2016, issued by the Mising Autonomous Council for supply of 500 numbers of Steel Almirah, the petitioner was awarded the work for supply of Steel Almirah. Thereafter, the petitioner supplied the said 500 numbers of Steel Almirah to the office of the Mising Autonomous Council in the Dhemaji District.
The petitioner submitted a total bill amount of Rs.66,37,500/- (Rupees sixty three lakh sixty six thousand and eighty) only against the supply of said 500 Steel Almirah. Accordingly, the respondent council had released the part payment of Rs.63,66,080/- (Rupees sixty three lakh sixty six thousand and eighty) only in two installments. However, despite several requests made by the petitioner, the remaining amount of Rs.2,71,420/- (Rupees two lakh seventy one thousand four hundred and twenty) has not been released. Hence, the present
Page No.# 3/4 Writ Petition is filed for directing the respondents to release the admitted amount of Rs.2,71,420/- (Rupees two lakh seventy one thousand four hundred and twenty).
Mr. D. Gogoi, learned Standing Counsel for the Mising Autonomous Council, referring to the affidavit-in-opposition, filed on behalf of the respondent No.1, submits that the Council has already released an amount of Rs.63,66,080/- only in two installments. He submits that by the time, the actual supply of the Steel Almirahs were made, the tax regime has been changed to GST and the petitioner had submitted the total bill amounting to Rs.66,37,500/- only, by adding CGST and SGST. The payment of Rs.63,66,080/- only could be made because of the available amount before the change of the tax regime. Mr. Gogoi further submits that the admitted claim amount of Rs.2,71,420/- could not be paid, as it exceeded the original budget as per the AOP. In other words, Mr. Gogoi submits that due to insufficient amount in the AOP against the bill, the total payment could not be released.
Having considered the submissions of learned counsel for the parties and averments made in the Writ Petition as well as the affidavit-in-opposition, it is clear that the claim amount is not disputed, save and except that it has exceeded the budget AOP. No dispute has been raised with regard to supply of the Steel Almirahs, as per the NIT, rather clearly admitted that 500 numbers of Steel Almirahs were supplied by the petitioner.
Considering that there is no dispute to the claim amount and the supply of the Steel Almirahs by the respondents’, I deem it appropriate to dispose of the Writ Petition by directing the Mising Autonomous Council to release the admitted outstanding bill amount of Rs.2,71,420/- (Rupees two lakh seventy one thousand four hundred and twenty) only.
Page No.# 4/4
Accordingly, the Writ Petition is disposed of with a direction to the respondent Nos.1 & 2 to release the admitted outstanding amount of Rs.2,71,420/- (Rupees two lakh seventy one thousand four hundred and twenty) only, within a period of one month, from the date of receipt of this order.
It is made clear that if the aforesaid amount is not released within one month, same shall carry interest @ 9% per annum, till the final payment is made.
JUDGE Comparing Assistant
Reproduced from the public record of the Gauhati High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.