State and instrumentalities cannot withhold admitted dues for executed and accepted works on paucity of funds or privity pleas; violates Article 14; writ maintainable; interest payable for arbitrary delay.

JUDGMENT :

WASIM SADIQ NARGAL, J.

Brief Facts

1. The present writ petition has been filed by the petitioner invoking the writ jurisdiction of this Court, inter alia, seeking a direction for release of admitted dues arising out of works duly allotted by the respondents. It is the case of the petitioner that the works stood executed in accordance with the approved specifications and to the satisfaction of the competent authorities, yet the admitted amount payable has remained withheld for several years without any justifiable cause.

2. It is averred that despite repeated representations and sustained efforts made by the petitioner for release of its legitimate dues, no effective steps were taken by the respondents, thereby constraining the petitioner to approach this Court.

SUBMISSIONS ON BEHALF OF PETITIONER;

3. The Learned counsel Mr. Hamza Prince for the petitioner submits that the present writ petition has been filed seeking appropriate directions for release of admitted dues arising out of works duly executed by the petitioner pursuant to allotments made by the respondents. It is contended that the petitioner has fulfilled all contractual obligations, and the works in question stand completed in accordance with the approved specifications and to the satisfaction of the concerned authorities.

4. It is further submitted that the inaction on the part of the respondents is arbitrary and unreasonable, being violative of Article 14 of the Constitution of India, and contrary to the statutory mandate contained in the Micro, Small and Medium Enterprises Development Act, 2006, which obligates timely payment along with interest in case of delay.

5. It is submitted that M/s Lumber India Corporation is a registered Small Scale Industrial Unit engaged in the construction of new buildings, renovation of old structures, and manufacture of joinery items/furniture and has undertaken works for various Government Departments and its performance, including quality of construction and supply of goods, has consistently been found satisfactory.

6. Learned counsel further submitted that the petitioner unit has been executing construction works and supplying joinery/furniture items and materials to Government Departments and Government-owned Corporations through the Jammu and Kashmir Small Scale Industrial Development Corporation.

7. It is submitted that respondent No. 3, vide communication dated 15.12.2014, requested SICOP to furnish a pro-forma bill for construction of a hut at Tourist Village Cheshma Shahi. In response thereto, the Project Engineer, SICOP, vide communication dated 06.01.2015, furnished a detailed cost estimate with a request for acceptance of the offer and release of funds for execution of the work.

8. It is further submitted that the Project Engineer, SICOP, vide communication dated 16.01.2015, authorized the petitioner unit to undertake construction of a 2 BHK Hut (Duplex) at Tourist Village Cheshma Shahi, with a direction to complete the work expeditiously in accordan