The Karnataka High Court.
Credit: DH File Photo
Bengaluru: The Karnataka High Court on Wednesday asked the Bruhat Bengaluru Mahanagara Palike (BBMP) if they are clearing contractors’ payments on seniority basis.
A division bench of Chief Justice Prasanna B Varale and Justice Krishna S Dixit pointed out that two contractors died by suicide, asking the BBMP why payments were not made on project completion.
"Look into that (record). Don’t drive the contractors to a corner," the bench said during the hearing of a civil contempt petition filed by Nikshep Infra Projects, which earlier sought the release of Rs 16,40,06,885 (Rs 16.4 crore) along with an 18 per cent interest for the contract certificate dated July 15, 2022.
The company, which executed several infrastructure projects, sought the court’s direction to the state and the civic body to consider its representation submitted on April 3, 2023.
On June 6, 2023, the single bench had disposed of Nikshep Infra Projects' petition, granting the BBMP six weeks to pass suitable orders on the representation. However, as the order went unheeded, the company moved a contempt petition against the non-compliance.
The respondents named in the contempt petition include Dr Ajay Nagabhushan MN, Secretary, Urban Development Department; Tushar Girinath, Chief Commissioner, BBMP; Vani, Chief Accounts Officer, BBMP; and Jayashankar, Executive Engineer, Malleswaram.
During the contempt petition hearing, the division bench remarked that there was no evidence indicating that the work was left incomplete.
The court recalled its order from October 30, 2023, wherein it had advised the state government and the BBMP to avoid such situations by issuing appropriate guidelines and disapproving the seniority basis for clearing bills.
"In any welfare state, this cannot be a concept when there is no dispute with regard to the fact that a public body floated tender for certain work, a successful bidder completes the work by following all the conditions of the work order, and a public body also admits that the work is duly completed. But still, the successful bidder or the contractor is required to wait for the amount due and payable to him for an unreasonable time or has to run from pillar to post for his payment and ultimately, they approach the court.
"Such type of matters is considerable in number that consume valuable time of the court and do not allow the court to take up some worthy or important matters where critical legal issues are involved or rights of the citizens are at stake," the court had said in its earlier order.
Meanwhile, Additional Advocate General Vikram Huilgol, representing the BBMP, assured the court that guidelines are being formulated in compliance with the court's order.