Allowed

Udai Raj Singh v. State of U.P. and 4 Others

Allahabad HC11 Jan 2022WRIC/25899/2021

Case brief

AI extract

What is this about?

In a public procurement dispute, the High Court held that while the Nagar Nigam had the ultimate liability to reimburse G.S.T. paid by the petitioner, payment was delayed due to lack of funds from the State Government. The court granted one month to the Nagar Nigam to pay the due amount.

What did the court decide?

Nagar Nigam permitted to pay the GST amount due to the petitioner's firm within one month.

Udai Raj Singh Vs State of U.P. and 4 Others — Public Procurement and Tenders | Allahabad HC (2022)

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Court No. - 40

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Case :- WRIT - C No. - 25899 of 2021

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Petitioner :- Udai Raj Singh Respondent :- State Of U.P. And 4 Others Counsel for Petitioner :- Anurag Bhatt Counsel for Respondent :- C.S.C.,Arun Kumar,Manoj Kumar Singh

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Hon'ble Manoj Kumar Gupta,J. Hon'ble Dr. Yogendra Kumar Srivastava,J.

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The amendment application is misconceived and is rejected.

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The petitioner who is doing business in proprietorship in the name of Prabhawati Electric Works was given a work order on 13.04.2018 by Nagar Nigam for supply of LED lights for use in Kumbh Mela, 2019. It was specifically agreed under the work order vide Clause No. 6 that after execution of the work under the contract the G.S.T. amount shall be paid by the petitioner's firm and upon production of receipt evidencing payment of G.S.T. amount, the same would be reimbursed by Nagar Nigam. Meaning thereby that the ultimate liability of paying G.S.T. was upon Nagar Nigam. The petitioner after due execution of the work produced bills evidencing payment of G.S.T. amount by him on behalf of the Nagar Nigam. It is in a sum of Rs. 16,80,784.00. The petitioner was not paid the said amount and consequently the instant petition has been filed by leveling allegation that the officials of the respondent-Nagar Nigam were demanding three percent commission for releasing the G.S.T. amount in question.

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On 24.11.2021 this Court granted time to the learned counsel for the respondents to obtain instructions as to why the government is not releasing funds to the Nagar Nigam, so that the G.S.T. amount is paid to the petitioner's firm.

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On matter being taken up today Sri Arun Kumar, learned counsel appearing on behalf of respondent nos. 2, 3 and 5 states that the Nagar Nigam has sent various communications to the State Government for making the funds available so that payment is released in favour of the petitioner's firm. However, since the State Government has not released the funds, therefore, the payment could not be made. He does not dispute the liability of the Nagar Nigam to pay the G.S.T. amount as per Clause 6 of the work order dated 13.04.2018.

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Sri Arun Kumar on query made by the Court as regards time frame within which Nagar Nigam would make payment of the G.S.T. amount to the petitioner's firm, submitted that one month time be granted for said purpose. He further submitted that it be left open to the Nagar Nigam to examine the correctness of the amount which is being demanded towards the G.S.T.

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We are of the opinion that the stand taken by learned counsel for the Nagar Nigam is reasonable. Accordingly, we permit the respondent-Nagar Nigam to make payment of G.S.T. amount as may be found due and payable to the petitioner's firm within a period of one month from today.

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The writ petition stands disposed of accordingly.

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Order Date :- 11.1.2022 Imroz

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(Dr.Y.K.Srivastava,J.) (Manoj Kumar Gupta, J.)

Udai Raj Singh v. State of U.P. and 4 Others

Case brief

What is this about?

What did the court decide?

Udai Raj Singh v. State of U.P. and 4 Others

Case brief

What is this about?

What did the court decide?

What the court decided

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