MUNICIPAL COMMISSIONER Vs. A 2 Z INFRASTRUCTURE LTD.

JUDGEMENT

(1.) I.A. No. 4195 of 2013 has been filed to condone delay of 368 days in filing the Appeal. The Bihar Urban Development Agency under the Department of Urban Development, Government of Bihar, invited express kin of interest for solid waste management in the town of Patna. After competitive bidding agreement was signed on 9.1.2010 between the respondent Company and the Appellant Municipal Corporation. The agreement inter alia provided for payment of 75% claim of monthly bills within ten working days and the remaining 25% after verification within a period of twenty days from the former payment. Bills were raised by the respondent from January 2010 till July, 2011 for works done. The respondent Company is stated to have deposited Rs. 10,83,59,873.53p as Government taxes for the works in question. No payments whatsoever having been made it stopped further works on 20.6.2011. The writ petition was then filed for payment of Rs. 7,62,65,817.00 with 18% interest. The learned Single Judge allowed the claim with 8% interest. Hence, the appeal by the Municipal Corporation.

(2.) Learned Counsel for the Municipal Corporation fairly stated that the respondent Company did work under the contract from January 2010 till July 2011. The agreement was not terminated for failure or inability to discharge obligations. But the respondent was entitled to payment of legitimate dues only. The bills raised were found to be exaggerated. It is entitled to payments only as admitted by the Corporation. The Corporation has examined the bills, assessed the legitimate dues and by a detailed note has forwarded it to the State Government in the Urban Development Department for approval on 23.7.2011. As soon as approval is received due payments shall be made. Since the amount claimed under the contract was denied and disputed by the Corporation the learned Single Judge, in writ jurisdiction could not have allowed payment beyond that admitted. The contract also contains an arbitration clause without availing which the writ petition had been filed and allowed.

(3.) Since the approval for payment was pending before the Department of Urban Development, it was also officially debated if appeal be filed after decision is taken by the Urban Development Department. The High Court Rules have been amended. It is mandatory for the appellant to file complete two legible sets of all the pleadings filed by the parties along with annexures before the Writ Court. The complete brief of the Writ Court was voluminous and runs into approximately 800 pages. Collation of all pleadings, verification to ensure their being legible, study of the same again to file the appeal therefore took some time. The delay in filing the appeal was therefore bona fide as administrative decisions had to be taken. Since a very large amount of public money is involved it is only proper that the delay be condoned and the matter heard on merits. No prejudice shall be caused to the respondent Company since the Municipal Corporation does not deny liability to pay and is in the process of quantification of the dues to be paid for which necessary action has already been taken.