Bal Mukund Tiwari vs. State Of U.P. And 3 Others

Held

The Court considered the facts and circumstances of the case and found no useful purpose in keeping the writ petition pending. On consent of the parties, the writ petition was disposed of finally. The Court directed the second respondent (Chief Engineer, Aligarh Zone, PWD, Aligarh) to decide the petitioner's application for payment of contract price, retention money, revised GST at 18%, and interest strictly in accordance with law and expeditiously, preferably within three weeks from the date of production of a certified copy of the order. The Court did not delve into the merits of the GST rate dispute or the entitlement to interest, focusing instead on directing the authority to process the petitioner's pending application.

Facts

The petitioner, Bal Mukund Tiwari, was awarded a contract for the construction of a helipad and other miscellaneous works for the proposed arrival of the Hon'ble Prime Minister in Aligarh. The contract price was initially INR 44,61,750/-, with the work completed by September 13, 2021. The final bill prepared by the Executive Engineer amounted to INR 49,94,061/-. Subsequently, a circular dated August 3, 2022, increased the GST rate on contract work from 12% to 18% effective July 18, 2022. The petitioner made repeated representations from June 20, 2022, to May 15, 2023, seeking payment of the contract price, retention money, revised GST at 18%, and interest, but the Public Works Department (PWD) remained silent. The petitioner filed a writ petition seeking a mandamus to compel the respondents to act on his payment application.

Key Issues

1. Whether the petitioner is entitled to payment of the contract price, retention money, revised GST at 18%, and interest on the contract price for the construction work completed in 2021, considering the subsequent increase in GST rates? The petitioner argued that despite completing the work in 2021 and making repeated representations, the PWD has failed to process his payment. He contended that the increase in GST from 12% to 18% effective July 18, 2022, should be applied to his contract, and he is entitled to the revised rate along with retention money and interest. The petitioner relied on his various representations to demonstrate his persistent follow-up. The respondent (State of U.P. and others) did not present any arguments as recorded in the judgment. The Court proceeded to dispose of the petition on consent.