Jagya Dutt Sharma vs. State Of Punjab And Others

Held

The Court directed the respondent-Corporation to release the entire payment for the work for which a completion certificate has been issued. The petitioner undertook to clear the GST liability within eight weeks of receiving the payment. The respondent-Corporation was also directed to pay interest at the rate of 6.5% per annum on the delayed payment, calculated from the date of issuance of the completion certificate, within three months. The Court disposed of the writ petition with these directions, without adjudicating on the merits of the petitioner's claim for 18% interest or the exact amount in dispute. The issue of whether some work still required completion was implicitly resolved by the direction to release payment for work with a completion certificate.

Facts

The petitioner, Jagya Dutt Sharma, filed a writ petition seeking directions for the respondents to pay the remaining outstanding amount along with interest for completed work. The respondents, State of Punjab and others, through their counsel, stated that all bills submitted by the petitioner, including GST challan forms, had been released. They also confirmed the completion of the work and issuance of a completion certificate. However, they noted that payment could not be released as the petitioner had not submitted the GST bills. Subsequently, counsel for respondents 2 to 7 informed the court that some work still required completion. The Court, without delving into the merits, directed the respondent-Corporation to release the entire payment for work with a completion certificate.

Key Issues

1. Whether the respondents are liable to pay the remaining outstanding amount to the petitioner along with interest at 18% per annum for the completed work, as per the petitioner's claim under Article 226/227 of the Constitution of India. Petitioner's Contention: The petitioner sought payment of the outstanding amount with 18% interest, implying a contractual or statutory right to such payment and interest due to delayed release of funds after work completion. Respondents' Contention: The respondents initially stated that all bills with GST challan forms were released and the work was completed with a certificate issued. They then clarified that payment was withheld due to the non-submission of GST bills. Later, they indicated that some work still required completion. They agreed to release payment upon submission of GST bills and completion of remaining work.