'Do Not Drive Contractors To Suicide': Karnataka HC To State Government On Settling Pending Bills

The Karnataka High Court, on Wednesday (29 November), questioned the state government whether the Bruhat Bengaluru Mahanagara Palike (BBMP) was settling contractors' payments based on seniority.

Chief Justice Prasanna B Varale and Justice Krishna S Dixit, in a division bench, noted the suicides of two contractors and questioned why payments were not made upon project completion.

The bench made these remarks during the hearing of a civil contempt petition filed by Nikshep Infra Projects, which had earlier sought the release of Rs 164,006,885 (Rs 16.4 crore) with an 18 per cent interest for a contract dated 15 July 2022.

Nikshep Infra Projects, a company involved in various infrastructure projects, requested the court's direction to the state and the civic body to consider its representation submitted on 3 April 2023.

On 6 June 2023, a single bench had disposed of Nikshep Infra Projects' petition, giving the BBMP six weeks to issue suitable orders on the representation. As the order was ignored, the company filed a contempt petition against the non-compliance.

The respondents mentioned 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 observed that there was no evidence indicating incomplete work. The court recalled its order from 30 October 2023, advising the state government and the BBMP to avoid such situations by issuing appropriate guidelines and rejecting the seniority basis for clearing bills.

The court emphasised the inefficiency of delaying payments to successful bidders who complete work according to the conditions of the work order. The court expressed concern about such matters consuming valuable court time, preventing attention to more critical legal issues or citizens' rights.

Meanwhile, Additional Advocate General Vikram Huilgol, representing the BBMP, assured the court that guidelines are being formulated in compliance with the court's order.