M/S P. Suohu vs. The State Of Nagaland And 7 Ors

Held

The Court held that the writ petition could be disposed of by directing the competent authority in the respondent Police Engineering Project Department to examine the petitioner's claim for payment. If, after examination, the petitioner is found entitled to the claimed amount of Rs. 28,56,650/- or any other sum, the respondent authorities are to take steps for its disbursal. The Court did not make a definitive finding on the exact entitlement but remanded the matter for examination by the competent authority. The entire exercise was to be completed as expeditiously as possible, preferably within six months from the date of submission of a certified copy of the order.

Facts

The petitioner, M/s P. Suohu, a government contractor, was awarded a contract for the construction of a type-1 quarter at PS Tuensang for Rs. 28,56,650/-. The petitioner completed the work, which was certified as satisfactory by respondent authorities, including the Superintendent of Police, Tuensang (respondent no. 6) and the Superintending Engineer, Police Engineering Project (respondent no. 7). Despite completion and repeated requests, the petitioner did not receive payment. The respondents, in their affidavit, stated that the work was funded by the Central Government under the 13th Finance Commission and that the Police Engineering Project Department had not received the last installment from the Central Government. They also averred that payment release required physical verification and examination of claimed liabilities.

Key Issues

1. Whether the petitioner is entitled to payment for the completed contract work, and if so, to what extent? Petitioner's Argument: The petitioner argued that they had satisfactorily completed the contract work as evidenced by the completion certificate issued by the respondent authorities. They sought a direction for the disbursement of the outstanding payment against the contract work. Respondents' Argument: The respondents contended that the contract work was funded by the Central Government and the Police Engineering Project Department had not received the final installment. They further stated that payment release was contingent upon physical verification reports and examination of the genuineness of the claimed liabilities. They did not dispute the completion of the work itself but raised issues regarding funding and verification procedures.