- 1 - HC-KAR NC: 2026:KHC:18729 WP No. 7568 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF APRIL, 2026 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 7568 OF 2026 (GM-RES) BETWEEN: M/S. S.R. CONSTRUCTIONS COMPANY CLASS-I PWD CONTRACTOR, NO.667, 19TH MAIN, PADMANABHANAGARA, BSK 3RD STAGE, BENGALURU - 560 070 PRESENTLY HAVING ITS OFFICE AT NO. 1393, 13TH CROSS, MCECHS PHASE-2, DR. SHIVARAMKARANTH NAGAR, JAKKUR, BENGALURU - 560 064, REPRESENTED BY ITS PARTNER, SHRI. CHEJARLA SUBBA REDDY THE INDIAN PARTNERSHIP ACT, 1932. …PETITIONER (BY SRI. PATIL ASHOK BASANAGOUDA, ADVOCATE) AND: 1. THE ADDITIONAL CHIEF SECRETARY, GOVERNMENT OF KARNATAKA, DEPARTMENT OF PUBLIC WORKS, PORTS AND INLAND WATER TRANSPORT, VIKASA SOUDHA, BENGALURU - 560 001. Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:18729 WP No. 7568 of 2026 2. THE CHIEF ENGINEER, COMMUNICATIONS AND BUILDINGS (SOUTH), PUBLIC WORKS DEPARTMENT, K.R. CIRCLE, BENGALURU - 560 001. 3. THE EXECUTIVE ENGINEER, SHIVAMOGGA DIVISION, PWP AND IWTD, SHIVAMOGGA - 577 202. 4. THE PRINCIPAL SECRETARY, GOVERNMENT OF KARNATAKA, DEPARTMENT OF TOURISM, BENGALURU - 560 001. 5. THE DIRECTOR OF TOURISM, GOVERNMENT OF KARNATAKA, ROOM NO.5, GROUND FLOOR, VIKASA SOUDHA, DR. B.R. AMBEDKAR VEEDHI, BENGALURU - 560 001. …RESPONDENTS (BY SRI. ADITYA DIWAKAR, AGA FOR R1 TO R5) THIS WP IS FILED UNDER ARTICLES 266 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTING THE RESPONDENTS TO PAY THE SUM OF RS.10,48,843/- WITH INTEREST AT THE RATE OF 24PERCENT PER ANNUM FROM 14- 09-2015 AS PER THE 7TH RUNNING BILL AT ANNEXURE-E, IN THE INTEREST OF JUSTICE AND EQUITY AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM - 3 - HC-KAR NC: 2026:KHC:18729 WP No. 7568 of 2026 ORAL ORDER The captioned petition is filed by a civil contractor seeking a writ in the nature of mandamus and direct the respondents to pay a balance sum of Rs.10,48,843/- with interest at the rate of 24% per annum from 14.09.2015 out of the 7th running bill at Annexure-E and also a sum of Rs.32,22,399/- with interest at the rate of 24% per annum as per the 8th final bill at Annexure-H. 2. The petitioner asserts that he was declared as the successful bidder in respect of construction of “Yatri Nivas” at Sri Ramachandra Mutt situated in Hosanagara Taluk, Shivamogga District. Pursuant to the acceptance of his bid, a formal work order came to be issued in his favour by the competent authority. It is the specific case of the petitioner that he has duly executed and completed the entire construction work entrusted to him in accordance with the terms and conditions of the contract, to the satisfaction of the respondent authorities. The grievance of the petitioner, however, is that despite completion of the - 4 - HC-KAR NC: 2026:KHC:18729 WP No. 7568 of 2026 project and submission of running and final bills, the respondent authorities have failed to settle the legitimate dues payable to him. The petitioner contends that an amount of Rs.10,48,843/- is due under the 7th running bill (Annexure-E) and a further sum of Rs.32,22,399/- is due under the 8th and final bill (Annexure-H), which also includes the value of additional works executed at the instance of the respondents. Despite repeated representations and issuance of legal notices, there has been inaction and undue delay on the part of the respondents in discharging their admitted financial liability. 3. Learned Additional Government Advocate, on instructions, fairly submits that the amounts claimed by the petitioner are, in fact, legally due and payable. However, he would contend that the concerned authority is in the process of taking steps to release the said amounts within a reasonable time. He would, therefore, oppose the claim of the petitioner insofar as it relates to the grant of interest, contending that the delay is not - 5 - HC-KAR NC: 2026:KHC:18729 WP No. 7568 of 2026 deliberate and that the prayer for imposition of interest may not be entertained. 4. Per contra, learned counsel appearing for the petitioner, placing reliance on an order passed by a Co- ordinate Bench of this Court in an identical set of circumstances, would contend that where there is inordinate and unexplained delay in releasing admitted dues, this Court has consistently exercised its writ jurisdiction to award interest as well as costs. He would submit that in the said case, the Co-ordinate Bench not only directed release of the admitted amount with interest at the rate of 12% per annum, but also imposed costs of Rs.2,00,000/- and further directed compliance to be reported, with a stipulation that non-compliance would entail additional interest. He would therefore urge that similar relief be granted in the present case as well. 5. This Court has given its anxious consideration to the submissions made by the learned counsel on both - 6 - HC-KAR NC: 2026:KHC:18729 WP No. 7568 of 2026 sides and has perused the material on record. It is not in dispute that the petitioner has completed the construction of Yatri Nivas and has raised the 7th running bill and 8th final bill. The material placed on record also prima facie indicates that additional work was extracted from the petitioner during the course of execution of the project. Once the work entrusted is completed and the project has been put to use, thereby generating revenue, the petitioner undoubtedly acquires a vested legal right to seek payment of the amounts legitimately due to him. Correspondingly, the respondent authorities are under a bounden obligation to honour such financial commitments without undue delay. 6. What is rather disturbing to note is that the petitioner completed the project and handed over possession as far back as in the year 2015, and yet, even as of 2026, the admitted dues have not been settled. Such conduct on the part of the respondent authorities clearly reflects gross negligence and administrative laxity. The - 7 - HC-KAR NC: 2026:KHC:18729 WP No. 7568 of 2026 facts of the present case are substantially similar to those considered by the Co-ordinate Bench, wherein this Court had deemed it appropriate to award interest at the rate of 12% per annum along with substantial costs, and had even cautioned the authorities of further consequences in the event of non-compliance. 7. In view of the undisputed liability and the inordinate delay in payment, this Court is of the considered opinion that the petitioner is entitled not only to the principal amount due but also to reasonable interest thereon, along with costs of litigation. Denial of interest in such circumstances would amount to permitting the respondents to unjustly retain the petitioner’s money without any consequence. ORDER i. The writ petition is hereby allowed. ii. The respondents are directed to release the amounts due to the petitioner under the 7th running bill (Annexure-E) and the 8th final bill - 8 - HC-KAR NC: 2026:KHC:18729 WP No. 7568 of 2026 (Annexure-H), together with interest at the rate of 12% per annum from 14.09.2015 till the date of actual payment. iii. The respondents shall further pay costs of Rs.1,00,000/- (Rupees One Lakh only) to the petitioner. iv. The aforesaid exercise shall be completed by the respondents within a period of eight (8) weeks from the date of receipt of a certified copy of this order. v. In the event of failure to comply with this order within the stipulated period, the amount shall carry additional interest at the rate of 1% per annum over and above the aforesaid rate, for the period of default. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE HDK List No.: 1 Sl No.: 61