Case Background
Nikshep Infra Projects had filed a writ petition in High Court DIRECTING the BBMP TO RELEASE THE PAYMENT OF RS 16,40,06,885/- WITH INTEREST AT 18 PERCENT PA FROM THE DATE IT IS DUE TILL THE DATE OF PAYMENT IN TERMS OF THE CONTRACT CERTIFICATE DTD 15.07.2022
After hearing, on the High Court had passed an judgement order in favor of Nikshep Infra Projects . BBMP had agreed to implement the order within 6 weeks.
Contempt of Court
BBMP did not implement the order. Nikshep Infra Projects filed Civil Contempt Petition in High Court. In the court hearing, the BBMP has requested for short adjournment, and told the court that it is disbursing the amount due and payable for the work undertaken by various contractors as per seniority of the bills submitted.
High Court Observations on 30 October 2023
High Court observes that it is unable to understand this concept of BBMP for payment of bills. In any welfare State, this cannot be a concept when there is no dispute with regard to the fact that a public body floated tender for certain work, successful bidder completes the work by following all the conditions of the work order and public body also admits that the work is duly completed but, still the successful bidder or the contractor is required to wait for the amount due and payable to him for an unreasonable time or has to run from pillar to post for his payment and ultimately, they approach the Court. Such type of matters are considerable in number which consume valuable time of the Court and do not allow the Court to take up some worthy or important matters where critical legal issues are involved or rights of the citizens are at stake.
We expect and hope that the public bodies or the State Undertakings or Corporation body of the State henceforth consider the concern expressed by this Court and try to avoid such situation by issuing appropriate directions or framing guidelines.
Implementation of Court Order
As on 13 December 2023, out of the total amount due and payable to the Nikshep Infra Projects, about 50% is paid. Matter is still pending in the court and has been listed for further hearing on 06 february 2024.
