HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT JAMMU
Wasim Sadiq Nargal, J.
M/s Krishna Engineering Works Industrial Estate - Petitioner
Versus
UT of J&K through Financial Commissioner - Respondent
WP(C) No. 73 of 2024, CM No. 133 of 2024, CM No. 7507 of 2025
Decided On : 06-02-2026
| Table of Content |
|---|
| 1. denial of payment based on procedural grounds. (Para 10) |
| 2. the duty of the state to honor financial commitments. (Para 11 , 12 , 14 , 15 , 16 , 17) |
| 3. court's directive for settlement of the petitioner's dues. (Para 19 , 20) |
JUDGMENT :
Wasim Sadiq Nargal, J.
01. The petitioner through the medium of instant petition has sought the following reliefs:
i) Writ of mandamus commanding upon the respondents to release the pending payments/clear the admitted liability of the petitioner to the tune of Rs.7,71,224/-(rupees seven lakhs seventy one thousand two hundred twenty four only) which is an admitted liability by the respondents and also to pay interest at the rate of 18% and compensation over the delayed payments as the respondents have failed to perform their statutory duties for releasing the hard earned money of the petitioner which is causing financial hardship to the petitioner.
ii) Mandamus commanding the respondents to release the pending payment of Rs.7,71,224/-(rupees seven lakhs seventy one thousand two hundred twenty four only) due to the petitioner in favour of the respondent No.5 along with interest of 18% till the date of its realization with a further direction to the respondent No.5 to release/clear the pending payments of the petitioner along with interest till the date of its realization.
SUBMISSIONS ON BEHALF OF THE PETITIONER
02. The petitioner who claims to be a proprietorship firm originally belonging to late Krishan Kumar Sharma, which was inherited later-on by his son namely Ajay Kumar, which firm is dealing with the business of electric works, rewinding of all types of booster and submersible motors, stabilizers (manual & servo) transformers, generator sets, panels, pump, repairing (sub pumps & HCP pumps) steel structure and all other electrical and mechanical job contracts. The petitioner firm has successfully completed many government contracts as well as private and autonomous organizations.
03. It is a specific case of the petitioner that for the period w.e.f the year 2015 to 2020, respondent No.5 engaged the petitioner firm for various works and issued job orders for the respective works in favour of the petitioner firm for a total amount of Rs.7,71,224/ against which the petitioner after successfully executing the work raised the bills to the respondents for the respective works. It is further case of the petitioner that after receiving the job orders of the work, the petitioner successfully executed and completed the entire work, as per the terms, to the entire satisfaction of the respondents within the stipulated period of time. In spite of the fact that the petitioner has executed the work well within the time in conformity with the terms and conditions of the job orders, the respondents have not released the payment to the tune of Rs.7,71,224/-.
04. The learned counsel for the petitioner further submits that the respondents have admitted the liability of the petitioner which is evident from a bare perusal of the bills which the petitioner have submitted and have been verified by the concerned Assistant Executive Engineer in which the respondents have admitted the liability towards the petitioner to the tune of Rs.7,71,224/- and the liability pertaining to e-NIT work for the year 2020 to the tune of Rs.34448/-which bills after due verification have been submitted for necessary action to the concerned Executive Engineer, Jal Shakti way back on 20.05.2023.
05. It is the specific case of the petitioner that in spite of the fact that the respondents have admitted the liability towards the petitioner but till date the same has not been released in his favour and feeling aggrieved of the same, the instant petition has been preferred.
SUBMISSIONS ON BEHALF OF THE RESPONDENTS
06. Per Contra, the response stands filed by the respondents by way of compliance report on 17.07.2025 in which the respondents have taken a specific stand that in compliance to the directions passed by this Court in the instant
Contractual payments must not be unduly delayed by the state without valid justification.
State and instrumentalities jointly liable for admitted dues on executed and accepted public works; cannot withhold payments citing no privity, paucity of funds or delays, violating Article 14; must ....
State cannot withhold admitted dues for executed and accepted public works citing paucity of funds or lack of privity among instrumentalities; violates Article 14, warrants interest on delay.
State cannot withhold admitted dues for executed works from which it benefited, citing procedural lapses or paucity of funds; such arbitrary action violates Article 14, attracting writ jurisdiction u....
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 ....
State cannot arbitrarily withhold admitted balance payment under supply contract after accepting goods; violates Article 14, constitutes unjust enrichment; mandamus maintainable for enforcement as pu....
Delay and laches cannot be invoked by the government to deny an admitted claim for payment, emphasizing the need for timely compensation to contractors.
Writ petitions against State for contractual obligations are maintainable even with disputed facts; non-payment of dues despite work completion warrants judicial intervention.
Writ petitions against State entities for payment of due amounts are maintainable even with disputed facts; contract completion obligates the State to release funds promptly.
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