Allahabad High Court
M/S ZARA CONSTRUCTIONversusSTATE OF U.P. AND 4 OTHERS
- Decided
Holding
The Court directed the respondent to verify the bills and, absent a specific dispute, to sanction and release the payment to the petitioner.
Summary
The petitioner, Zara Construction, filed a writ petition seeking immediate release of Rs. 25,86,657 plus GST from the State of U.P. and a distribution company, alleging that the amount was outstanding as shown by internal communications dated March 25, 2026, September 13, 2019 and May 12, 2020. The respondents contended that the petitioner’s bills required verification before any payment could be made. The Court directed respondent No. 5 (the distribution company) to verify the bills in light of the communications and, if no clear dispute is raised, to sanction and disburse the payment within three weeks of communicating the order. The Court warned that failure to indicate a specific dispute would constitute a violation of its direction. The writ petition was disposed of after issuing the direction.
Issues considered
- Whether the petitioner is entitled to immediate payment of the outstanding amount including GST.
- Whether the respondent is required to verify the petitioner’s bills before sanctioning payment.
Subjects
- payment of dues
- contractor
- GST
- writ petition
- bill verification
- direction
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
WRIT - C No. - 15962 of 2026
M/S Zara Construction
.....Petitioner(s)
Versus
State Of U.P. And 4 Others
.....Respondent(s)
Counsel for Petitioner(s) : Bashisth Narain Pandey
Counsel for Respondent(s) : C.S.C., Shrawan Kumar
Tripathi
Court No. - 29
HON'BLE ARINDAM SINHA, J.
HON'BLE SATYA VEER SINGH, J.
1. Mr. Bashisth Narain Pandey, learned advocate appears on
behalf of petitioner and submits, his client did the work for the
distribution company. Prayer is for direction to immediately
release payment of Rs. 25,86,657/- alongwith applicable goods
and services tax, to his client. He refers to internal
communications dated 25th March, 2026, 13th September, 2019
and 12th May, 2020 (disclosed in that order) for demonstration
that said amount is outstanding for payment to his client.
2. Mr. Raj Mohan Upadhyay, learned advocate Additional Chief
Standing Counsel, appears on behalf of State. Mr. Shrawan
Kumar Tripathi, learned advocate appears on behalf of
respondent nos. 2 to 5 (the distribution company). He submits,
petitioner's bills need to be verified.
3. Petitioner has demonstrated from internal communications,
there is outstanding of the amount mentioned in prayer (A).
Respondent no. 5 is directed to verify petitioner's bills in context
of aforesaid communications and take steps for sanction and
disbursement of the payment. Petitioner will communicate
certified copy of this order to said respondent. Within 3 weeks of
the communication such steps be taken or petitioner informed on
WRIC No. 15962 of 2026
2
reason of specific dispute raised in respect of any part or whole of
the amount not paid, for petitioner to proceed to recover in
accordance with law.
4. It is made clear unless clear dispute is indicated to petitioner in
case of non-payment, it will amount violation of our direction.
5. Writ petition is disposed of.
May 12, 2026
Vikram
(Arindam Sinha,J.)
(Satya Veer Singh,J.)
Digitally signed by :-
VIKRAM SINGH
High Court of Judicature at Allahabad
Checking your session…