Observing orally that at least two contractors, as per the official records, have committed suicide in the State, the High Court of Karnataka on Wednesday asked the State government and the Bruhat Bengaluru Mahanagara Palike not to drive contractors to corner by delay in making payments for completed works despite the absence of any dispute over the contractual works.
How many contractors should commit suicide? Can the government delay payment when the work is completed sans any complaints or disputes? the court asked when the State government and the BBMP sought more time to pay ₹16.4 crore to a contractor despite the time granted by the court earlier.
A Division Bench comprising Chief Justice Prasanna B. Varale and Justice Krishna S. Dixit made these observations while hearing a contempt of court petition filed by M/s Nikshep Infra Projects.
It has been alleged in the contempt petition that the government and the BBMP have failed to make payment within six weeks as directed by a single judge in an order passed on June 6, 2023. The petitioner-contractor has been waiting for about a year to get payment from the BBMP for the completed works.
Frame guidelines
The Bench, in its written order, has said, “It expects and hopes 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” for making payments to the contractors across the State without any unreasonable delay.
On the submission of the government and the BBMP that they are disbursing the amount due and payable for the work undertaken by various contractors as per seniority of the bills submitted, the Bench said, “We are unable to understand this concept of BBMP for payment of bills.”
Unreasonable delay
“In any welfare State, this cannot be a concept when there is no dispute with regard to the fact that a public body floated a tender for certain work, the 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,” the Bench observed in its order.
The Bench also said that such a type of petition on delay in payment of amounts to the contractors is considerable in number before the court and consumes valuable judicial time, causing hindrance to the court from taking up some worthy or important matters where critical legal issues are involved, or rights of the citizens are at stake.
When the counsel for the State government and the BBMP said authorities are cleansing the payment system to contractors, the Bench orally said that the cleansing should also happen on taking action on erring officials.
The Bench adjourned further hearing till December 13 as the authorities sought time to comply with the court’s earlier direction for making payment to the petitioner-contractor.
