N.Balusamy Vs the Managing Director

Prayer: Writ Petition filed under Article 226 of the Constitution of India seeking a Writ of Mandamus, directing the respondents to pay the admitted amount sum of Rs. 3,57,600/- along with interest at the rate of 12 percentage per annum for the bills raised by the petitioner for the works done by the petitioner under the work issued by the 2^nd respondent by based on the reply dated

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W.P.No.9909 of 2025

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23.01.2025 within a stipulated time a fixed by this Hon'ble Court and pass such other or further orders.

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For the Petitioner : M/s. M.E.Raniselvam For the Respondents : Ms.S.Shahila Bhanu Standing Counsel for RR1 & 2

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ORDER

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The Writ Petition is filed with a prayer to direct the respondents to pay the admitted amount of Rs.3,57,600/- with interest at the rate of 12 % per annum for the bills raised by the petitioner and for the works done by him under the work order issued by the respondents, based on the reply dated 23.01.2025.

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Ms.M.E.Rani Selvam, the learned counsel appearing on behalf of the petitioner drawing the attention of this Court to the communication dated 23.01.2025 would submit that the petitioner executed certain works to the respondent – Board which happened in the year 2010 – 2011. Even as per the communication dated 23.01.2025, it is admitted that there is an arrears amount due to be paid to the petitioner, being a sum of Rs.3,57,600/-. The learned

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counsel would submit that the amount is also admitted in the counter affidavit. If any internal procedure has to be followed, it is for the look out of the respondents and they cannot keep the sum eternally pending.

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Per contra, the learned Standing Counsel appearing on behalf of the respondents – Board would submit that the respondent – Board is bound by the rules that are framed in respect of these kind of works and tenders. When the amount is due, the same shall be realised only after preparing and approving the Authorized Extras and Omission statement (AEO statement). In this case, the same has to be prepared and then to be placed before the competent authority, which is the tender committee. The tender committee has to be re-constituted under the chairmanship of the Special Secretary and it will take sometime. Only after the approval is obtained, the amount can be released.

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I have considered the rival submissions made on either side and perused the material records of the case.

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W.P.No.9909 of 2025

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The amount that is due to the petitioner is admitted in the communication dated 23.01.2025 and the relevant portion is extracted

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hereunder:-

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“xg;ge;jjhuUf;F tH';fg;gl;l bjhif (Already paid LS 20^th Part bill) – U:/43.93.800/- tH';fg;gl ntz;oa ,Wjpg; gl;oay; bjhif (LS 21^st Final bill)- U:/1.99.916/-

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gl;oaypy; gpoj;jk; bra;ag;gl;l bjhif LS 14^th Part bill – 55,307/LS 15^th Part bill – 51,869/LS 16^th Part bill – 50,508/-^{}U:/1.57.684/-}

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Mfbkhj;jk; j';fSf;F tH';fg;gl ntz;oa eYit bjhif ? U:/3.57.600/- nkYk; ,t;tpWjpg; gl;oaypy; tUkhd thp kw;Wk; bjhHpyhsh; ey epjp gpoj;jk; bra;ag;gl;L AEO xg;g[jy; bgwg;gl;lt[ld; epYitj;bjhif tH';fg;gLk; vd;gJk; bjhpag;gLfpwJ/”

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As a matter of fact, even in the counter affidavit, the same has been

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reiterated and the relevant portion in paragraph Nos.7 and 8 are extracted hereunder for ready reference:

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“7.I respectfully submit that the Tamil Nadu Water Supply and Drainage (TWAD) Board had prepared the necessary bills for the agreement period (including the extended period of 8 months) and the paid to the contractor periodically. The balance amount due to be paid to the petitioner with respect to this work are detailed below:

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W.P.No.9909 of 2025

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S.No.
1.

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*S.No.*	*Description*	*Amount in Rs.*
1.	Total value of work measured	45,93,716/-
2.	Payment already made to the Petitioner	43,93,800/-
3.	Final Bill amount to be paid to the petitioner	1,99,916/-
4.	Withheld amount	1,57,684/-
	Total balance amount to be paid to the petitioner	3,57,600/-

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The Respondent state that the balance amount of Rs.3,57,600/(Rupees three lakh fifty seven thousand and six hundred only) due to be paid to the petitioner only on finalization of the authorized extras and omissions statement.

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I respectfully submit that in settlement of final bill,

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certain procedures have to be followed. The necessary Authorised Extras and Omissions statement (i.e. AEO statement) has to be prepared and got approved by the competent Authority. In this issue, the Authorized Extras and Omissions statement has been prepared and to be placed before the Tender Committee which is competent to approve the extras involved due to extension period of Operation and Maintenance for further period of 8 months. The approval of the Tender Committee is under process. Hence the settlement is pending.

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In view thereof, there is no dispute with reference to payment of sum of

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Rs.3,57,600/-. The preparation and approval of the AEO statement is the internal

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procedure of the respondent – Board and for that procedure, the petitioner cannot be deprived of his amount eternally. Therefore, the amount needs to be paid. It will be open for the respondents to comply with the said procedure as

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early as possible.

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The second question that is to be determined is the interest that is liable to be paid. Though the petitioner has claimed 12 % interest, it can be seen that in the connected matters in W.A.No.2 of 2024, the Hon'ble Division Bench of this Court has ordered interest at the rate of 7% to be paid. Therefore, the same rate can be adopted in the instant case also.

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In view thereof, this Writ Petition is allowed on the following terms:-

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(i) The respondents – Board, shall release the admitted amount of

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Rs.3,57,600/- with further interest at the rate of 7% per annum with effect from

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01.01.2013, till the date of disbursement;

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(ii) The said payment shall be made within a period of four months from the date of receipt / production of the website uploaded copy of this order, without waiting for the certified copy;

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(iii) No costs.

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22.04.2025

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Neutral Citation : Yes/No Jer

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