As per case facts the petitioner a subcontractor completed ground improvement works for the Polavaram Irrigation Project under the main contractor Due to the main contractor's financial distress the State ... allowed direct payments to subcontractors The petitioner completed the works under direct supervision and instructions from the Water Resources Department Payments were made for some works but an amount for Electronic Cone Penetration Tests was withheld citing unapproved rates The department argued no direct contract and termination of the main agreement The question arose whether the Water Resources Department is obligated to pay the subcontractor for completed works despite no direct contract and termination of the main agreement given direct supervision and benefit Finally the High Court held that the department having directly supervised and benefited from the petitioner's work is obligated to pay the admitted amount and the termination of the main contract does not absolve this liability The Writ Petition was disposed of directing payment within eight months