In Brief
Surya Constructions undertook extra work for Uttar Pradesh Jal Nigam as part of a government project, which was expressly sanctioned and completed to the authority's satisfaction. The amount due (Rs. 113.29 lacs) was undisputed and acknowledged by the government. When the contractor approached the High Court for payment via a writ petition, the court dismissed it citing contractual disputes and disputed questions of fact. The Supreme Court found this wholly incorrect. It held that where the amount is entirely undisputed and the State acts arbitrarily in refusing payment, the High Court can intervene under Article 226 even in contractual matters. The Court directed immediate payment with 6% interest, given the decade-long delay."
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