M/s Prem Construction, a firm, having its office at Purnadih, Chalkari, PO & PS v. 1. The State of Jharkhand, through the Secretary, Department of Rural Development, Government of
Case Details
IN THE HIGH COURT OF JHARKHAND AT RANCHI WP (C) No.3875 of 2023 M/s Prem Construction, a firm, having its office at Purnadih, Chalkari, PO & PS Peterwar, District Bokaro, Jharkhand, through its Proprietor Amarjit Kumar, aged about 45 years, S/o Thakur Das Nayak, Near Saraswati Shishu Mandir, Chalkari, PO & PS Peterwar, District Bokaro, Jharkhand …… Petitioner Versus 1. The State of Jharkhand, through the Secretary, Department of Rural Development, Government of Jharkhand, Office at FFP Building, PO & PS - Dhurwa, District Ranchi, Jharkhand. 2. The Deputy Commissioner, Bokaro, District Collectorate, Camp II, PO & PS -Bokaro Steel City, District Bokaro, Jharkhand, 827001. 3. The Executive Engineer, Rural Development Department (Rural Work Affairs), Works Division, Bokaro, Office at Camp II, PO & PS - Bokaro Steel City, District Bokaro, Jharkhand, 827001 4. Principal Secretary, Department of Home, Prison and Disaster Management …… Respondents ----- CORAM: HON’BLE THE ACTING CHIEF JUSTICE
Legal Reasoning
HON’BLE MR. JUSTICE NAVNEET KUMAR -------- For the Petitioner For the Respondents : Mr. Baibhav Gahlaut, Advocate : Mr. Ratnesh Kumar, SC (L&C)-I Mr. Rakesh Kumar Shashi, Advocate Order No.11/ Dated 25th June, 2024 M/s Prem Construction has approached this Court for a direction upon the respondents to make payment of Rs.38, 87,949/- for construction of PCC Road from Pipra Ghutu to Gatiya Bera (L-0.930 KM) along with interest @ 8% from 6th November 2020. 2. In the order dated 2nd May 2024, this Court recorded that the respondents had admitted in the counter affidavit filed on behalf of the Deputy the Executive Engineer, Rural Development Commissioner, Bokaro and Department (Rural Works Affairs) that the petitioner-firm was entitled for payment of Rs.38,87,949/-. However, in the affidavit filed by the Under Secretary, Department of Home, Prison & Disaster Management a faint attempt was made to dispute the amount payable to the petitioner-firm inasmuch as it was stated in the said affidavit that the Department will finalize the admissible amount and request the Ministry of Home Affairs (LWE Division), Government of India to release the fund. 3. On 2nd May 2024, this Court had passed the following order: “For construction of a road Pipra Ghutu to Gatiya Bera (L-0.930 KM), the petitioner-Firm was awarded the contract. 2. In the counter-affidavit filed on behalf of the respondent nos. 2 & 3, the respondents have admitted that the petitioner-Firm is entitled for payment of Rs.38,87,949/- which is the amount unpaid. 3. In the counter-affidavit filed by the Under Secretary, Department of Home, Prison & Disaster Management, it is stated that for the District of Bokaro no fund was released by the Ministry of Home Affairs (LWE Division) since the financial year 2021-22. It is further stated that the Deputy Commissioner, Bokaro vide his letter dated 6th March 2024 made a requisition for allotment of Rs.6,67,03,686/-. Finally it is stated that the Department will finalize the admissible amount and request the Ministry of Home Affairs (LWE Division), Government of India to release the funds. Quite apparently, the affidavit filed by the Department of Home, Prison & Disaster Management is unfair and cannot be accepted. The statement made in paragraph no.10 of the affidavit dated 23rd April 2024 that the Department will finalize the admissible amount is contrary to the admissions made in the affidavit filed on behalf of the respondent 2 W.P. (C) No. 3875 of 2023 nos.2 & 3 and that too without any reason. Even if it is assumed that the said statement made in paragraph no.10 was not properly formulated, the stand taken by the Department is still unfair. The Department of Home, Prison & Disaster Management being the Nodal Department is under a duty to ensure that any scheme is not impleaded without following the Central guidelines for receiving financial assistance. The State being a nodal employer now cannot shirk of its responsibility to make payment to the petitioner-Firm after availing valuable services; the contract date is 9th June 2020. This is the petitioner-Firm was paid also pertinent Rs.11,02,962/- in the year 2022 and this fact completely belies the statement made in paragraph no.9 of the affidavit filed by the Under Secretary, Department of Home, Prison & Disaster Management. However, before we pass a final order, an opportunity is granted to the respondents to sit together and make a proposal for payment of Rs.38,87,949/- to the petitioner-Firm within next four weeks. record that to 4. Let an affidavit be filed in this regard before the next date. 5. Post this matter on 14th May 2024.” 4. However, no proposal for indicating the manner for payment to the petitioner-firm was put forth by the respondents and therefore on 15th May 2024 2 WP (C) No.3875 of 2023 this Court had granted four weeks’ time for making payment to the petitioner-firm. 5. On 15th May 2024, following order was passed by this Court: In the order dated 2nd May 2024, this Court recorded that the petitioner-Firm was paid to Rs.11, 02,962/- in the year 2022. This fact completely relies the stand taken by the respondents in the counter- affidavit that since the financial year 2021-22 no fund has been released by the Ministry of Home Affairs (LWE Division), Government of India. 2. In compliance of order dated 2nd May 2024, an affidavit has been filed but no proposal is coming forth from the respondents. 3. However, on the request of Mr. Ratnesh Kumar, S.C. (L&C)-I, the learned State counsel, four weeks’ time is granted for making payment to the petitioner-Firm. 4. Post this matter on 25th June 2024.” 6. When this matter was taken up for hearing, Mr. Ratnesh Kumar, the learned S.C. (L&C)-I made a prayer for adjournment which was declined by this Court. 7. Normally the writ Court does not entertain a petition for money claims but this practice is adopted by the writ Court having regard to serious dispute on facts as regards entitlement for payment and sometimes for the reason that even the quantum of money payable to the petitioner-firm was disputed. In the present case, the liability to make payment to the petitioner-firm is not denied but the amount had remained unpaid. Even the facts pleaded by the petitioner-firm are not controverted and, as noticed above, Rs.38,87,949/- which is admittedly payable to the petitioner-firm has not been paid presumably on the ground that fund was not released by the Ministry of Home Affairs (LWA), Government of India. This Court deprecates the stand taken by the Department of Home, Prison and Disaster Management which is the Nodal Agency. From the materials on record, this Court gathers that at no stage the Department of Home, Prison and Disaster Management took a stand that without any information to it the NIT was floated and the Department had no knowledge about the work order being given to the petitioner-firm or about the progress / completion of the subject work. 8. Mr. Ratnesh Kumar, SC (L&C)-I would however submit that the Department of Rural Development, Department of Home, Prison and Disaster Management and the Deputy Commissioner, Bokaro are involved in the entire 3 WP (C) No.3875 of 2023 transaction and, therefore, it is difficult to make a decision to whom the liability to make payment shall be fastened. This Court sees no difficulty in deciding to whom a direction shall be issued for making payment of Rs. 38,87,949/- to the petitioner- firm. Being the Nodal Agency which was under a duty to oversee not only the progress and proper execution of the program but was also required to remain vigilant at all times that any project is started only after receiving fund or at least a commitment to release fund from the Ministry of Home Affairs (LWA), Government of India, the Department of Home, Prison and Disaster Management should own the responsibility to make payment to the petitioner-firm. 9. Therefore, a direction is issued to the Department of Home, Prison and Disaster Management to ensure payment of Rs. 38,87,949/- with interest @ of 8% to the petitioner-firm from 6th November 2020. This direction for payment of interest we are making for the reason that the amount of Rs.38,87,949/- could have been utilized by the petitioner-firm for its business purposes and it would have earned profit thereon. 10. The Writ Petition is allowed in the aforesaid terms. R.Kumar (Shree Chandrashekhar, A.C.J.) (Navneet Kumar, J.) 4 WP (C) No.3875 of 2023