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Gurbachan Singh Contractor v. State of Punjab and Others

Punjab & Haryana HC1 Feb 2021CWP/2192/2021

Case brief

AI extract

What is this about?

The Court addressed multiple petitions by government contractors regarding the delay in payment of admitted dues. The judge directed the competent authority to decide on pending legal notices via speaking orders within six weeks. Failure to pass favorable orders within an additional six weeks would attract 9% interest per annum.

What did the court decide?

Directs competent authority to decide on pending legal notices via speaking orders within six weeks. Failure to pass favorable orders within another six weeks attracts 9% interest per annum.

Gurbachan Singh Contractor Vs State of… — Service and Employment | Punjab & Haryana HC (2021)

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101 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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CWP-2192 of 2021 (O&M)

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Date of Decision: 01.02.2021.

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Gurbachan Singh Contractor V/S	...Petitioner
State of Punjab&Ors.	....Respondents CWP-2227 of 2021 (O&M)
M/s J.K. Associates	...Petitioner
V/S
State of Punjab&Ors.	....Respondents CWP-2241 of 2021 (O&M)
Gurbachan Singh Contractor	...Petitioner
V/S
State of Punjab&Ors.	....Respondents CWP-2263 of 2021 (O&M)
Gurbachan Singh Contractor V/S	...Petitioner
State of Punjab&Ors.	....Respondents

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CORAM: HON’BLE MR JUSTICE ARUN MONGA Present : None. (Cases taken up through video conferencing)

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ARUN MONGA, J. (ORAL)

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Facts vary a little but the common grievance/issuein all the above titled petitions, raised by government contractors/petitioners, is qua inaction of the official respondents in processing disbursements, of what is claimed to be their admitted dues, in respect of the work carried out by them.

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VIVEK PAHWA 2021.02.03 11:59 I attest to the accuracy and integrity of this document

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It is pleaded that despite having successfully completed the work, the respondents, even after verification thereof, have failed to release thealleged admitted duesfor no justifiable reasons. Even legal noticesdated 24.12.2020(Annexure P-2 in CWP No.2192 of 2021), dated 21.12.2020(Annexure P-3 in CWP No. 2227 of 2021), dated 24.12.2020(Annexure P-2 in CWP No. 2241 of 2021) and dated 24.12.2020(Annexure P-2 in CWP No. 2263 of 2021)sent by respective

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petitioners, stated to have been served upon the respondents. Except in one case, notices have not even been adverted/responded, let alone being complied with. In reply to one legal notice dated 24.12.2020(Annexure P-2 in CWP No.2241 of 2021) respondents have thoughadmitted liability and yet, the dues have not been cleared.

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In somewhat similar circumstances, my learned Brother Sanjay Kumar, J. in the case of M/s J.K. Associates Vs. State of Punjab¹ observed as below:-

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“It is indeed unfortunate that the authorities choose to ignore the legal notices received by them from contractors in relation to the amounts allegedly due to them for execution of works for the State. In the event the authorities have any dispute with regard to the contractors' claims, it is for them to respond suitably to such legal notices and clarify their stand. It is not open to the authorities to remain silent and blithely ignore grievances ventilated by contractors through their legal notices.”

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I need say no more except to reiterate and agree with the above view taken by Co-ordinate Bench of this Court. State is duty bound to respond to

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a legal notice where it is alleged that the amounts are admittedly due/verified. Perhaps a stricter approach may have to be adopted to initiate

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1 CWP No. 1781 of 2021, decided on 27.01.2021

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VIVEK PAHWA 2021.02.03 11:59 I attest to the accuracy and integrity of this document

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proceedings, including, in a given case, invoking contempt jurisdiction. Compliance of views expressed in M/s J.K. Associates, ibid in letter and spirit would save the litigants from avoidable litigation to seek indulgence of court, merely to get response on a pending legal notice.

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In the premise, without adverting to merits of the case, these petitions are disposed of with a direction to competent authority, to take a decision, either way, on pending respective legal notices,by passing separatespeaking orders in each case, in accordance with law, within a period of six weeks from the date of receipt of copy of this order.

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In case favourable orders are passed, benefit thereof be accorded within a period of six weeks thereafter, failing which, petitioners shall be entitled to interest @ 9% p.a., recoverable from the salary of the erring official.

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February 01, 2021 (ARUN MONGA) Jiten JUDGE

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Whether speaking/reasoned: Yes/No

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Whether reportable: Yes/No

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VIVEK PAHWA 2021.02.03 11:59 I attest to the accuracy and integrity of this document

Gurbachan Singh Contractor v. State of Punjab and Others

Case brief

What is this about?

What did the court decide?

Gurbachan Singh Contractor v. State of Punjab and Others

Case brief

What is this about?

What did the court decide?

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