Ms Goyal Paper Udyog Through One Of Its Partner Sri Krishna Murari Agrawal vs. The State Of Jharkhand

Facts

The petitioner, M/s Goyal Paper Udyog, filed a writ petition seeking directions for the release of Rs. 4,25,426/- withheld by the respondents. The petitioner was awarded a work order for Rs. 9,89,502/- for supplying training modules, posters, and folders for academic session 2017-18. Subsequently, an additional work order was issued for progress report cards amounting to Rs. 3,80,537/- (exclusive of GST). The petitioner claims to have completed the supply within the stipulated time and raised bills. Despite several representations and a complaint registered with the Jansamvad Kendra, the payment was not released. The respondent No. 4 acknowledged that Rs. 4,25,426/- remained unpaid to the petitioner.

Held

The Court, without entering into the merits of the case, held that the bill raised by the petitioner subsequent to the issuance of the additional work order requires consideration by an appropriate authority. The Court granted the petitioner liberty to prefer a fresh representation regarding their claim before Respondent No. 3. Upon receipt of this representation, Respondent No. 3 is directed to provide a due opportunity of hearing to the petitioner's representative and take an appropriate informed decision within a period of three months from the date of filing the representation. The writ petition was disposed of with these directions.

Key Issues

1. Whether the petitioner is entitled to payment for the supplies made under an additional work order, and if so, under what authority of law? Petitioner's argument: The petitioner contends that they were selected as a supplier by the District Purchase Committee and had received a work order. They further supplied progress report cards based on an additional work order and fulfilled their contractual obligations. The withholding of payment is therefore unjustified. Revenue/State's argument: Respondent Nos. 3 & 4 argued that the petitioner raised bills for the amount in question beyond the contractual terms, which is why the payment has not been made.