TOMOR CONSTRUCTION CO Vs. STATE OF MP

JUDGEMENT

(1.) CHALLENGING the action of the State Government/respondent-corporation in insisting upon producing no dues certificate from the Collector or showing proof for payment of royalty for the minerals consumed by the petitioners in execution of the contract in question, petitioners have filed this petition.

(2.) PETITIONERS have executed the contract in question and for the purpose of doing the work awarded by the contract certain minerals are to be used as raw material. According to the petitioners the minerals and other raw materials are purchased from the open market from various authorized and licenced dealers. After the contract is executed now when the bills are to be settled, grievance of the petitioners are that respondents are insisting upon producing royalty payment receipts or no due certificate with regard to payment of royalty for the mineral consumed before clearing the bills of the petitioners for payment.

(3.) PETITIONERS contended that in view of the principles laid down by a division-Bench of this Court in the case of M P. Contractors Sangh, Indore and others vs. State ofm. P. and others, 1987 JLJ 743 followed by a Single Bench of this Court in the case of Prestige G. S. Sole vs. M. P. Rural Development, 2004 (4) MPLJ 175 and a recent judgment rendered by a Division Bench of this court in the case of Keti Construction Limited vs. State of M. P. and others, 2007 (3) MPHT 433, respondents cannot withhold payment of bills on the ground of non-production of certificate or document for payment of royalty. It is the contention of the petitioners that in view of the principles laid down by this Court in the judgments referred to hereinabove, respondents cannot withhold clearance of the bills submitted by the petitioners on the grounds as indicated hereinabove. Accordingly, seeking interference and directions to the respondents to clear the bills of the petitioners without insisting upon no dues certificate or other documents with regard to payment of royalty, petitioners have approached this court for necessary directions.