Topic
Meghalaya High Court rules that withholding undisputed contractual payments violates natural justice, directing release of Rs. 17.79 lakhs while disputed Rs. 7.89 lakhs undergoes independent assessment. The ruling sets a precedent for equitable relief in public works contracts, ensuring contractors receive undisputed dues without procedural delays.
The Kerala High Court has ruled that public works contractors may invoke legitimate expectation to demand reconsideration of contract prices after sudden commodity surges, if the government previously granted similar relief under comparable circumstances. This sets a binding precedent for state agencies to honor consistent administrative practices, protecting contractors from unilateral burden-shifting during unforeseen market disruptions.
The Punjab & Haryana High Court ruled that under Clause 9 of a work order, payment can only be reduced if the work fails to satisfy the Executive Engineer-not merely because the actual cost is lower than estimated. Certification of completion bars unilateral rate reduction, reinforcing contractual sanctity in public works contracts.