A division bench of Justice Vipin Sanghi and R.C. Khulbe of Uttarakhand HC allowed the special appeal and set aside the order passed by the learned single judge on the ground that the writ petitioner had made a money claim and left to approach Civil Court. This court admitted the petitioner’s claim as well as allowed the appeal with a direction to the respondent to make payment of Rs.41,23,008/- within four weeks from the date of the order along with interest at the rate of 06 per cent per annum from 24.04.2019 till payment.
Facts:
The present special appeal was directed against the order dated 05.08.2022, passed by the learned Single Judge, in Writ Petition (M/S) No. 876 of 2021. The writ petition preferred by the appellant to seek a direction to the respondents for immediate release of Rs.41,23,008/- to the petitioner, which is the admitted amount of outstanding liability and security deposits lying with the respondent. The writ petition was dismissed by the learned Single Judge on the ground that the writ petitioner had made a money claim and, therefore, he was left to approach the civil court for redressal of his grievance.
Learned counsel for the appellant submitted that the respondent had repeatedly admitted the liability towards the appellant of the aforesaid amount. In this regard the attention of this court had been drawn to the communication dated 24.04.2019. On 04.05.2019, the respondents also issued another inter-departmental communication stating that the amount of Rs.41,23,008/- has to be released to the appellant. Subsequently, the respondent sent another communication on 30.07.2020 admitting that an amount of Rs.41,23,008/- is payable to the appellant consisting of Rs.21,79,673/- as outstanding payment for works done, and Rs.19,43,355/- towards refund of security deposit, adding upto Rs.41,23,008/-. It was further stated that the amount cannot be released due to non-availability of funds. The appellant on 01.09.2020, gave its consent to accept the amount of Rs.41,23,008/- in full and final settlement of its claims under the contract. Despite the aforesaid communication, the amount was not released to the appellant and, therefore, he preferred the present appeal.
Observations of the Court
This Court observed that there was no dispute about payment of the aforesaid amount to the appellant and Counsel for the respondent was not in a position to dispute any of the aforesaid documents. However, the respondents took the stand in their communication dated 23.07.2018 that there were some defective works requires rectification by the appellant. The balance payment if due shall be made only after successful completion of the work and on receipt of the balance payment from Govt. / Client department for and on whose behalf respondents are getting the work done as construction agency.
However, no particulars of the alleged defect in the work done by the appellant were ever communicated, and no particulars of the work got done allegedly at the risk and cost of the appellant, were ever provided. For the aforesaid reason, this court had directed the respondents to make payment of Rs.41,23,008/- to the appellant within four weeks from the date of the order along with interest at the rate of 06 per cent per annum from 24.04.2019 till payment. The said amount shall be paid to the appellant, and accepted by the appellant, towards full and final settlement of its claims.
Decision:
The present special appeal was allowed with a direction to the respondent to make payment of Rs.41,23,008/- within four weeks from the date of the order along with interest at the rate of 06 per cent per annum from 24.04.2019 till payment.
Case: M/s Mascot Sales Corporation vs U.P. Rajkiya Nirman Limited and others
Citation; SPECIAL APPEAL NO. 313 OF 2022
Coram: Justice Vipin Sanghi and R.C. Khulbe
Dated: 23.11.2022
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