LACHHMAN WIRE INDUSTRIES LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) ON tenders being invited by the Director, Purchase and Transport Water Resources Department, Government of Bihar, for supply of Black Annealed Wires and Galvanised Iron Wires in the years 1988, 1989 and 1990 from Small Scale Industrial Units of Bihar having ISI licence, the petitioner alongwith other such manufacturers submitted their quotations then respondent no. 2 placed supply orders to the petitioner in the year 1989 -90. As per the supply order the petitioner had supplied the materials, the details of which are there at paragraph -6 of the writ petition. In terms of the agreement 90% of the bills amount were paid and 10% of the bills were retained to be paid finally after receipt of materials and after due verification but such 10% which amounted to Rs. 7,82,211.63 paise remains due to be paid by the respondents to the petitioner. The petitioner made representations and ran from pillar to post for payment but could not get it. Then he preferred an appeal before the State Appellate Committee constituted by the State Government under Store Purchase Preference Rules and the Appellate Committee after hearing the parties allowed the appeal and vide order dated 16.5.1998 directed the respondent no. 2 to pay the dues without any further delay to the petitioner and on this order the consent of the Industries Minister was also obtained as would be revealed from annexure -10.Then also payments were not made although the petitioner had given several notices including legal notice, as contained in annexure -1. In the meantime, under the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993, the Government of Bihar constituted Industry Facilitation Council to look into all such type of cases like that of the petitioner wherein the petitioner had made representation for redressal of his grievances with interest. In its meeting dated 15.3.2001 the said Committee decided as per the orders passed by the State Appellate Committee that the respondents are liable to pay Rs. 7,82,211.63 paise and they are also liable to pay interest on the said amount as provided under Section 4/5 of the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993. The order is annexed as annexure -12 but still then no payment has been made. After calculating the interest the petitioner had given notice to pay the dues of Rs. 54,45,399.14 paise but to no effect and hence the present writ petition has been filed.

(2.) IN the counter -affidavit the respondents have taken various pleas which they were taking before the appellate authorities also that the materials were not being found in proper condition and as per terms and conditions of the agreement.

(3.) IN that way, the present writ petition is hereby allowed directing respondent no. 2 to make payment of the dues of the petitioner as per the orders passed by the State Appellate Authority and the Facilitation Committee under the Interest on Delayed Payment Act, as mentioned, forthwith and if payment is not made within a period of one month from the date of presentation of a copy of this order from the side of the petitioner then respondents -authority shall be liable to pay up further interest on the amount as per the Interest Act itself.