Incomplete Projects: Himachal Pradesh HC Takes Strict Action Against Non-Performing Contractor

The Himachal Pradesh High Court has recently taken a strict stance against a contractor who has failed to commence or complete a significant majority of the projects awarded to them.

A bench comprising Justice Tarlok Singh Chauhan and Justice Satyen Vaidya has directed the contractor to submit an affidavit clearly outlining the timeline within which they will accomplish the unfinished projects. Furthermore, the bench has prohibited any department of the state government from releasing funds to the contractor without explicit permission from the court.

The court’s decision arose from a petition filed by the contractor, Sanjeev Kumar Bhandari, requesting the vacation of an interim order issued in September 2021. The interim order had restrained the state government from re-tendering a road project previously awarded to Bhandari.

However, upon examination, the court discovered a pattern of project non-completion by Bhandari. Out of the 66 projects assigned to Bhandari, a mere 12 have been successfully completed. Shockingly, Bhandari had not even initiated work on 25 of the projects.

Expressing criticism towards the state government for repeatedly granting projects to Bhandari despite their history of non-completion, the court directed the Principal Secretary of the Himachal Pradesh Public Works Department (HPPWD) to take action against the officials responsible for awarding the projects to Bhandari.

The court, while disposing of the application, emphasized that the petitioner must not evade responsibility for their unfinished projects.

“However, that does not mean that the petitioner will get away lightly by not completing those of the works. The petitioner is directed to file an affidavit clearly setting out therein the timeline within which he would complete the works High Court of H.P. in question, which either have not been started or, if started, are in the mid-way, but have not been awarded to any other contractor thus far”, the bench directed.Top of Form

The court further directed that the pending projects, which have either not been initiated or are incomplete but have not been awarded to any other contractor yet, should not be assigned to anyone else. The bench emphasized the seriousness of the situation.

To ensure that the concerned authorities are informed about the court’s decision and can take necessary actions accordingly, a copy of the order has been sent to the Chief Secretary to the Government of Himachal Pradesh, as well as to the Engineer-in-Chief of HPPWD (Himachal Pradesh Public Works Department) and I&PH (Irrigation and Public Health Department).

A fresh status report is required to be submitted by the respondents on 13th July 2023, providing an update on the progress made in addressing the pending projects.