- (1.) Seeking a direction for release of arrears of amount for the work executed by the petitionercompany, the present writ petition has been filed.
(2.) The brief facts of the case are that, pursuant to Notice Inviting Tender dated 16.01.1999, the petitioner was awarded work for execution of Residual Earth Work of Chandil Left Main Canal from K.M. 32.392 to 40.840. The letter of intent was issued on 11.10.1999 and agreement with the petitionercompany was executed on 05.11.1999. The Mechanical Carriage Item was sanctioned on the basis of (Current Schedule Rates) CSR1999 and all payments were made from the year 19992004 on CSR1999 basis. In terms of letter dated 30.07.1998 providing price escalation which was made part of the Notice Inviting Tender, on 19.09.2001 a proposal was directed to be sent and the Chief Engineer was directed to resolve the matter. The Chief Engineer accordingly, took a decision in terms of letter dated 30.07.1998 and vide letter dated 24.05.2003 sent a proposal for final approval of the department for payment of 90% amount of price escalation. The said proposal was referred to the Cabinate Vigilance Department, Government of Jharkhand for conducting enquiry why and under what authority 90% payment for price escalation was recommended. The Vigilance Bureau submitted a report dated 22.03.2006 and opined that in view of letter dated 30.07.1998, the department rightly recommended for price escalation. Further report/letter dated 11.11.2006 and 19.12.2006 were issued stating that there was no financial irregularity in recommending payment of 90% of price escalation. The file containing recommendation for payment of 90% price escalation was approved by the Chief Secretary and the Chief Minister and the file was returned to the Department of Water Resources for further action. Thereafter, vide letter dated 22.07.2010, the Executive Engineer, Swarnrekha Canal Division, Jamshedpur sent the proposal on the basis of the Final Bill, however, no payment has been released by the respondent Department of Water Resources.
(3.) The respondentState of Jharkhand took a plea that no payment contrary to the terms of agreement dated 05.11.1999, can be made to the petitioner. The letter dated 30.07.1998 was recalled by the Department vide letter dated 18.08.1999 and thus, no price escalation can be awarded to the petitioner. The agreement dated 05.11.1999 executed with the petitioner does not contain a provision for price escalation. The Chief Engineer recommended payment of 90% escalation without approval of the department and therefore, the matter was referred to the Vigilance Bureau. The part payment of price escalation made on the order of Chief Engineer was without any approval of the competent authority and thus, the illegal part payment cannot be a ground for seeking further payment.;