The Patna High Court, while allowing a petition filed for issuance of an appropriate writ, order, or direction directing and commanding the respondents to pay the petitioner the amount for the work of E/R to W/S and S/I and Boring at Civil Court for the year 2015-16 done by the petitioner, held that the petitioner could not be denied the payment of interest on the delayed payment solely on the ground that there is no clause in the agreement between the parties for making payment of interest on the delayed payment.
Brief Facts:
The case of the petitioner is that he completed the works entrusted to him in the year 2016 and immediately, after completion of the work within the stipulated time, the petitioner submitted the necessary bills. That the authority concerned did not make the payments of the bills due to the petitioner immediately but after several rounds made to the office of the respondents, the amounts were finally paid in the year 2023.
Contentions of the Petitioners:
The Learned Counsel for the Petitioners submitted that the Petitioner is entitled to interest on the delayed payments. Learned counsel further stated that due to the lapses committed by the authorities, the petitioner was not paid the due amounts immediately after the completion of the work, but, paid the amount after a lapse of almost 7 years. Therefore, learned counsel for the petitioner stated that a direction may be given to the authorities to pay the interest on the delayed payment
Contentions of the Respondents:
The Learned Counsel for the Respondent submitted that the present Writ Petition is liable to be dismissed on the ground that there is no contract or clause in the agreement entered between the parties for making payment of any interest on the delayed payment. Learned counsel stated that the petitioner is bound by the terms and conditions of the agreement entered between the parties and, therefore, he cannot seek any direction from this Hon’ble Court for payment of any interest on the delayed amount.
Observations of the Court:
The Court noted that the petitioner was entrusted the works contract in the year 2016 and he completed the same. After completion of the works, the petitioner submitted the bills but the amounts due to the petitioner were not paid immediately. The said amount was paid in 2023, i.e., after nearly 7 years.
The Court observed that the petitioner could not be denied the payment of interest on the delayed payment solely on the ground that there is no clause in the agreement between the parties for making payment of interest on the delayed payment. Any prudent person will enter into the contract with the Government or any third party with the hope that the bill amounts will be paid immediately or within some reasonable time on completion of the works.
The decision of the Court:
The Patna High Court, allowing the petition, held that interest at the rate of 7% per annum on the delayed payment, i.e., from the date of submission of the bills till the date of making the payment, i.e., 2023, is granted to the petitioner.
Case Title: M/s Asha Info Solutions Pvt. Ltd. v The State of Bihar & Ors.
Coram: Hon’ble Justice A. Abhishek Reddy
Case no.: Civil Writ Jurisdiction Case No.18194 of 2022
Advocate for the Petitioner: Mr. Yogendra Kumar Singh
Advocate for the Respondents: Mr. Mahtab Alam
Read Judgment @LatestLaws.com
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