HC directs release of Rs 47.47 lakh dues to contractor; raps state for delay
16/04/2026
SRINAGAR, Apr 15: The High Court of Jammu & Kashmir and Ladakh has directed authorities to release Rs 47.47 lakh in admitted dues to a contractor, holding that the State cannot withhold payments on the ground of lack of funds after accepting completed work.
Justice Wasim Sadiq Nargal, while allowing a writ petition filed by M/s Lumber India Corporation, observed that the State and its instrumentalities are under a legal and constitutional obligation to make timely payments for works executed and accepted.
The petition was filed by the firm through its co-proprietor Ghulam Nabi Dar, seeking release of pending dues arising out of construction and renovation works executed for the tourism department and allied agencies. The court noted that the works were duly allotted, executed as per approved specifications and accepted by the authorities, with partial payments already released, thereby establishing undisputed liability.
Rejecting the stand of the respondents that there was no privity of contract or that payments depended on availability of funds, the court held that such pleas were wholly untenable once the work had been executed and benefit derived.
Justice Nargal emphasised that the State cannot evade liability by citing internal administrative issues, observing that withholding admitted dues for years is arbitrary and violative of Article 14 of the Constitution.
The court further held that even in contractual matters, writ jurisdiction can be invoked where State action is arbitrary and dues are undisputed.
Coming down heavily on delays, the court said that paucity of funds cannot be a valid defence and termed such excuses as legally unsustainable, particularly when the State has already utilised the work executed.
It also stressed the need for administrative accountability, observing that repeated delays in payments point to systemic deficiencies and that responsibility can be fixed on erring officials in appropriate cases.
The court directed the respondents to release the admitted amount of Rs 47.47 lakh within four weeks, failing which the petitioner would be entitled to interest at 6 per cent per annum from the date the amount became due.
Share This Story |
|
Comment On This Story |
|
|
|
|