R.K. Trader vs. The State Of Bihar
Original PDF →Facts
R.K. Trader, through its proprietor Rajeev Ranjan Kumar, filed a writ petition seeking payment of Rs. 9,16,020.20 for laboratory materials supplied to the Government Medical College, Bettiah, between May and June 2021, against supply orders dated April 24, 2021, and May 1, 2021. The petitioner contended that despite submitting invoices, payment had not been made. The respondents, including the Government Medical College, Bettiah, did not deny the supply of materials. Their counter affidavit indicated that payments were delayed due to the materials being supplied during the Covid-19 pandemic and the necessity of using Covid-19 funds. The unused Covid-19 fund was returned on August 30, 2023, necessitating a fresh fund allotment. The respondents also noted procedural irregularities in the purchase, such as not following tender processes for certain purchases.
Held
The Court allowed the writ petition, directing Respondent No. 2 (The Director in Chief, Health Department, Govt. of Bihar, Patna) to take necessary steps for allotting the required funds to Respondent No. 4 (The Principal, Govt. Medical College, Bettiah). This allotment was to enable Respondent No. 4 to clear the outstanding bills of the petitioner. The Court emphasized that the necessary funds should be allotted as expeditiously as possible, preferably within six weeks from the receipt of the order. Upon receiving the funds, Respondent No. 4 was directed to clear the petitioner's outstanding dues within four weeks thereafter. The Court acknowledged the admissions by the respondent authorities regarding the supply and the pending payment, and the procedural issues raised by the respondents were addressed by directing the appropriate authority to facilitate fund allotment for payment. The ratio decidendi is that where goods/services have been supplied and utilized, and the non-payment is due to administrative delays in fund allocation, the Court can direct the concerned authorities to expedite the process of fund allotment and subsequent payment.
Key Issues
1. Whether the petitioner is entitled to payment for the laboratory materials supplied to the Government Medical College, Bettiah, during the Covid-19 pandemic, despite alleged procedural irregularities in the purchase process? (Question of law and fact, concerning contract law and public procurement principles). 2. Whether the delay in payment is attributable to the respondents' internal administrative and financial procedures, specifically the return of unused Covid-19 funds and the need for fresh allotment? Contentions: Petitioner: The petitioner argued that they had supplied the materials as directed and submitted the invoices, and therefore, were entitled to payment. They prayed for a writ of mandamus to direct the respondents to make the payment along with interest. Respondents: The respondents, in their counter affidavit, admitted the supply of materials but cited procedural deficiencies in the purchase, including the use of quotation processes instead of tender processes for certain purchases. They stated that payment was contingent upon fresh allotment of funds from the Health Department, as the Covid-19 fund had been returned. They also mentioned that one voucher (for Rs. 4,42,411.20) was paid on November 5, 2024, after deducting GST, but the remaining amount for R.K. Traders would be paid upon receipt of separate allotment and permission due to the improper purchase procedure.
Sections Cited
CGST Act (implied by deduction of GST), Section 129 (not discussed but related to movement of goods, not applicable here)
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL JUDGMENT Date : 07-10-2025 Heard the learned counsel for the parties.
This writ petition has been filed for the following relief(s):- “i) For issuance of a writ in the nature of mandamus directing and commanding the respondents authority to pay Rs. 9,16,020.20 (Nine Lakh Sixteen Thousand Twenty and Twenty Paise) of Supplied Laboratory Material dated 25.05.2021 vide invoice bill no. 03 & 05 and dated 25.05.2021 vide invoice bill no. 08 and dated 08.06.2021 vide Invoice Bill No. 09 by the petitioner to the Govt. Medical College, Bettiah against the supply order vide letter No. 639 dated 2/6 24.04.2021 and supply order vide letter No. 666 dated 01.05.2021 respectively. ii) For issuance of inappropriate writ/writs, order/orders, direction/directions to pay the aforesaid amount with appropriate rate of interest on with hold amount till the date of payment. iii) To grant any other relief/reliefs, direction/directions, order/orders for which the petitioner is entitled under facts and circumstances of the case as well as on law.”
It is the case of the petitioner that during Covid- 19 Pandemic the petitioner was directed to supply the necessary laboratory material to the Government Medical College, Bettiah, District- West Champaran. Thereafter the petitioner has submitted the invoice bills pertaining to the above supply however the authorities are yet to make payment for the material supplied by the petitioner. Learned counsel has submitted that though the petitioner has been running from pillar to post for the payment of the above amounts, the authorities have till date not taken any steps to pay the same. Learned counsel for the petitioner has, therefore, prayed this Hon’ble Court to allow the present writ petition and direct the respondent authorities to make the necessary payments of the bills for which supplies have already been made.
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In the counter affidavit filed by the Respondent No. 4 i.e. the Professor and Head of the Biochemistry Department, Govt. Medical College, Bettiah, the fact that the petitioner has supplied the necessary laboratory material and also the necessary kits has not been denied. As a matter of fact, the respondents have stated that the four vouchers of the petitioner for the financial year 2021- 22 reveals that they have been signed and stamped by the then Incharge of the store and Bursar of account section. The vouchers were signed by the Bill Clerk, Accountant but not signed by the then Principal. That on further enquiry it came to light that these material were supplied during the Covid- 19 pandemic situation and the necessary payments should be made from the allotment of funds meant for the Covid-19 fund only. That on the instructions of the higher officer, the unused amount of Covid-19 fund was returned on 30.08.2023 and therefore the payment against the bills submitted by the petitioner can only be made after fresh allotment of the funds. That a letter to that effect has been sent to the Health Department vide letter no. 560 dated 31.10.2023. Further, it is stated that a fresh reminder letter bearing no. 1233 dated 30.08.2024 has also been sent for allotment of the funds for clearing the pending vouchers. That the authority are yet to receive the allotment. Further in the counter affidavit it is stated as under :
4/6 “11. That since the Purchase Committee has been made party (Serial no.-05) the matter was discussed in meeting of Purchase Committee on 14.10.2024 and it was decided that though Finance Department guidelines had not been followed in purchase procedure (viz. total purchase of items for Biochemistry department was given for the rupees 11,55 302 40/ through orders no-666,667, 668 all dated-01.05.2021; so tender process should be done and not the quotation process; also tender process should have been done for the purchase of items of rupees 13,69,285.32/- related to management of Covid 19) since all the purchased items have been received and utilized without any fallacy, by Biochemistry department, the vouchers related to the purchase of items meant for Biochemistry department (viz order no-666 dt 01.05.2021 for rupees 4,42,411.20/- to RK Traders; 667 dt- 01.05.2021 of rupees 3,75,844.00/-to Northern scientific and 668 dt-01.05.2021 of rupees 3,37,047.20/-) should be made and rest purchase of rupees 13,68,400.52/-, related to management of Covid should be made after the receipt of extra allotment from the Health Department.
That therefore, the bill related to voucher no-08 dt-24.05.2021 of rupees 4,42,411.20/-of R. K. Traders was sent to, and later, passed by the treasury after deducting GST the and amount was paid to R. Κ. Traders on 05.11.2024 vide UTR No RBI3112422268118. Rest rupees 4,72,724/- of R. K. traders will be paid only upon the receipt of separate allotment (as well as permission of doing so) for such payment by the Health Dept, in light of improper purchase procedure. 13 . That in April-2021, Quotation was published by this institution vide letter no-541 dt- 5/6 06.04.2021 for the purchase of the item related management of to Covid-19 for the department of central pathology and Biochemistry' Dept. Three Quotation were received, viz. Ms. Northern scientific, Ms. SS Enterprises and Ms. RK Traders; the Proprietor were member of same family (Father, Mother and Son). In Purchase Committee meeting, held on 16.04.2021, different item were made LI among these agencies and on 24.04.2021 by order no-638. SS Enterprises was assigned to supply items of total rupees 4,26,160.00/-by order no-639, Traders was assigned to supply items of rupees 4,77,367.00/- and by order no-640, Northern scientific was assigned to supply the item the of rupees 4,69,516.32/-. Thus purchase of total rupees 13,73,043.32/- was ordered to three member of a family via quotation process and not via the tender process.”
In the supplementary counter affidavit, the authorities have stated as under:
“9. That the statement made in paragraph No. 7 and 8 of the rejoinder it is stated that as soon as the allotment and direction to pay the amount is received from the department, the due amount will be paid.”
Having regard to the above made submissions and also the admissions by the respondent authority in the counter affidavit, this Court deems it fit and proper to allow the present writ petition with a direction to the Respondent No. 2 to take necessary steps for allotting the required funds to the Respondent 6/6 no. 4 so as to enable the Respondent No. 4 to clear the outstanding bills of the petitioner. The authorities shall endeavour to allot the necessary funds as expeditiously as possible preferably within a period of six weeks from the date of receipt of the copy of this order. Once the necessary funds are allotted to the Respondent No. 4, the Respondent No. 4 shall immediately clear the outstanding dues of the petitioner as expeditiously as possible preferably within a period of four weeks thereof.
The present writ petition stands allowed to the extent indicated. Gauravkr/- (A. Abhishek Reddy , J) AFR/NAFR NAFR CAV DATE N/A Uploading Date 17.10.2025 Transmission Date N/A
Reproduced from the public record of the Patna High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.