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2025 Supreme(JK) 85

HIGH COURT OF JAMMU AND KASHMIR
RAJNESH OSWAL, J
RATTAN SINGH PARMAR – Appellant
Versus
UNION TAERRITORY OF JAMMU AND KASHMIR TH PRINCIPAL SECRETARY PW R AND B DEPTT AND OTHERS – Respondent
WP(C) 804 / 2021



Advocates:
Mr. Sandeep Singh, Advocate, Mr. Ravinder Gupta, AAG

Delay and laches cannot be invoked by the government to deny an admitted claim for payment, emphasizing the need for timely compensation to contractors.

Headnote:(A) Constitution of India - Article 300-A - Claim for payment of construction work - Petitioner executed work for road construction and claimed balance payment of Rs. 22.74 lacs, which was admitted by respondents but delayed due to non-availability of funds - Court emphasized that delay and laches cannot be used to deny an admitted claim, especially when the government has acknowledged the liability. (Paras 11, 12, 16)

(B) Delay and Laches - The court held that the plea of delay cannot be used to deny a justified claim when the government admits the liability, emphasizing the need for fair treatment of contractors. (Paras 10, 14)

Facts of the case:
The petitioner was contracted for road construction work, completed the work, and claimed a balance payment of Rs. 22.74 lacs, which was acknowledged by the respondents but not paid due to funding issues. The petitioner sought legal recourse after multiple representations went unanswered. (Paras 1-2)

Findings of Court:
The court found that the respondents admitted the balance payment due and directed its release along with interest, rejecting the plea of delay as a defense against the claim. (Paras 11, 16)

Issues: The main issue was whether the respondents could invoke delay and laches to deny the claim despite admitting the balance amount due to the petitioner. (Para 9)

Ratio Decidendi: The court ruled that the government cannot deny an admitted claim based on technical grounds of delay, emphasizing the need for timely payment to contractors to avoid financial distress. (Paras 11, 12)

Result: Petition allowed in part, directing the release of Rs. 22.74 lacs with interest.

JUDGMENT :

1. The petitioner was allotted work for construction of road from “Katali Galla to Una” in District Rajouri from 1st Km to 5th Kms. After completion of the said work, liability of the work done by the petitioner was calculated as Rs. 1,05,06,595/- till 31.12.2011 and the road was thereafter handed over to the PMGSY Division, Rajouri for further construction. It is contended that out of the total liability of Rs. 1,05,06,595/- an amount of Rs. 55,06,595 was paid to the petitioner and the balance amount could not be paid on account of the non- availability of funds, as conveyed vide communication dated 12.01.2012 by respondent No. 2 to respondent No. 1. In the same communication, request was also made for release of the balance amount of Rs. 50.00 lacs so that the work done claim of the contractor could be cleared.

2. The petitioner submitted a representation before the Hon'ble Prime Minister of India and Office of the Hon'ble Prime Minister, New Delhi vide communication dated 07.03.2014 forwarded the said representation of the petitioner dated 28.02.2014 to the Chief Secretary of the erstwhile State of J&K. Thereafter, respondent No. 2 vide communication dated 17.12.2015 requested respondent No. 1 for release of Rs. 22.74 lacs for settling the claim of the petitioner. The communication dated 17.12.2015 was issued pursuant to the report dated 12.12.2015 submitted by respondent No. 3 to respondent No. 2. Thereafter, the petitioner again submitted representation to the then Minister for Finance and Planning of the erstwhile State of Jammu and Kashmir, for redressal of his grievance, which in turn was marked to the respondent No.1 for his examination. Thereafter, the Director, Planning PW (R&B) Department requested respondent No. 2 to take immediate appropriate necessary action in the matter under intimation to the department. When no action was taken by the respondents, another representation was submitted by the petitioner to the Advisor to the Governor of erstwhile State of J&K, which was referred to respondent No. 2 for necessary action. The petitioner thereafter sent a Legal Notice to respondent No. 1 for release of funds and making payment to him, but nothing was done, which prompted the petitioner to file the present petition for directing the respondents to release the payment of Rs. 50.00 lacs alongwith interest at the rate of 9% from 31.12.2011 till its disbursal to the petitioner.

3. The respondents have filed the response, stating therein that the present petition has been filed after about 10 years from the accrual of cause of action, as such, the same is required to be dismissed. It is stated that the petitioner was allotted work for the construction of “Katalli Gala to Una road KM 1st Rd 0 to 165 and Rd 750 to 900‟ by way of earthwork cutting/filling vide respondent No. 4‟s office allotment No. 990-94 dated 03.06.2009 for an amount of Rs. 12.08 lacs, where the period of completion of the work was two months only and supplementary agreement came to be drawn for an amount of Rs. 27.85 lacs vide Superintending Engineer PWD (R&B) Circle Rajouri No. 01 of 05/2010 and also post facto approvals were accorded by Superintending Engineer, PWD (R&B) Circle Rajouri for an amount of Rs. 31.62 lacs and 13.13 lacs for construction of above said road upto KM 4th RD 125 by way of earthwork in cutting as reported vide respondent 4‟s communication dated 28.11.2015. It is stated that the balance payment of the contractor by way of earthwork is 170170 CUM, the cost of which comes to Rs. 22.74 lacs and is payable to the petitioner.

4. Mr. Sandeep Singh, learned counsel for the petitioner has argued that there is admission on the part of the respondents with regard to the execution of the aforesaid work allotted to the petitioner by the respondents and the whole payment could not be made to the petitioner, as the funds were not available.

5. Per contra, Mr. Ravinder Gupta, learned AAG has objected to the claim of the petitioner only

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