Silent Denials No Longer Shield: J&K High Court Forces Payment of Hotel Dues for Protected Politicians

In a ruling that underscores the perils of evasive government pleadings, the High Court of Jammu & Kashmir and Ladakh at Srinagar has directed the Union Territory administration to clear long-pending dues owed to Hotel New Metro. Justice Rajesh Sekhri, in a sharply reasoned judgment delivered on February 11, 2026 , quashed an ex-parte bill verification committee and invoked principles of pleadings under the Code of Civil Procedure (CPC) to deem key facts admitted due to the respondents' silence. The case stemmed from the hotel's requisition for housing protected political figures amid Kashmir's security challenges.

Security Quarters Turn into Payment Battleground

The saga began in November 2020, against the backdrop of elevated threats to elected representatives like Panches, Sarpanches, and municipal councillors in Kashmir. Following a circular dated November 7, 2020 , and a Divisional Commissioner, Kashmir communication on December 12, 2020 , Hotel New Metro was among 14 hotels hired on a sharing basis from November 18, 2020 , for protected persons and their round-the-clock security. De-hired at the divisional level on October 5, 2021 , the hotel was swiftly re-hired by Srinagar's Deputy Commissioner from October 27, 2021 , until May 31, 2022 .

The hotel submitted bills aligned with rates fixed by authorities—Rs. 356 per day per room for boarding in summer, with catering charges—and claimed continuous occupation, evidenced by security deployments and even a fax redeploying guards post-de-hiring. Yet, despite initial verifications and partial payments, a massive chunk—allegedly Rs. 84,59,523—remained unpaid, prompting the writ petition in 2023.

Hotel's Cry: 'We Reserved Rooms on Your Orders—Pay Up!'

Represented by Senior Advocate Jahangir Iqbal Ganai and Advocate Sohail Mehraj , the petitioner argued that official requisitions bound them to reserve rooms exclusively, with keys in occupants' hands and no alternative use possible. Bills were processed, verified, and funds released by government accounts, they contended. The post-de-hiring Bill Verification Committee, formed November 5, 2022 —months after occupancy ended—was a " colorable exercise " to slash liabilities, violating natural justice via its ex-parte report slashing claims to Rs. 89,736 against their Rs. 40 lakh-plus demand.

A supplementary affidavit detailed phased calculations: Rs. 21,23,774 finalized for the first period (with Rs. 11,90,220 paid, balance Rs. 8,33,124), and further shortfalls in later phases, totaling over Rs. 84 lakhs unpaid.

State's Retort: 'Claims Inflated, We've Paid Fair Share'

The UT of J&K , through Senior AAG Mohsin Qadri and GA Illyas Laway , admitted hirings but decried "exaggerated" bills. They highlighted the committee—chaired by SDM (East) per orders of November 5, 2022 , and January 18, 2023 —verifying occupancy against official records, approving only Rs. 89,736 as "actual," paid via treasury on March 27, 2023 . Writ jurisdiction couldn't enforce disputed pecuniary claims, they argued, labeling the petition an "abuse" for unjust enrichment . Acceptance of payment estopped challenge, and no fundamental rights breach warranted interference.

Pleadings' Power: Silence Equals Admission

Justice Sekhri dissected the pleadings with precision. Noting the respondents' failure to specifically deny the first-phase hiring (November 2020–October 2021), he applied Order VIII Rules 3 and 5 CPC : general denials don't suffice; undenied facts are admitted. Drawing on Charanjit Lal Mehra v. Kamal Saroj Mahajan (2005) 11 SCC 279 , he clarified admissions can be inferred, needing no proof under Section 58, Evidence Act .

For the second phase, the court rejected the committee's ex-parte probe, distinguishing it from fact-finding: bill verifiers must hear claimants under audi alteram partem , especially on inflation allegations. Continuous security, redeployed guards, and reserved rooms precluded later occupancy disputes. The committee, formed post-de-hiring without hotel input or record checks, was quashed.

As legal reports note, this echoes broader scrutiny of fiscal gatekeeping in security hires, where hotels bore the brunt of state-directed occupations.

Key Observations

"It is not sufficient for a defendant in his written statement to make a general denial of the grounds alleged by the plaintiff, he is required to specifically deal with each allegation of fact of which he does not admit the truth..."

"The principle of audi alteram partem applies with full force if the rejection of a bill is based on allegations of fraud or misconduct or that claim is inflated."

"After the occupation of the petitioner Hotel by the persons, identified by respondents, and deployment of security framework... petitioner had no direct control over the hotel premises/rooms..."

Gavel Falls: Pay Up or Pay Interest

The writ succeeded: the November 5, 2022 , committee order and February 10, 2023, report stand quashed. Respondents must liquidate claims within eight weeks of judgment service, or face 6% annual interest. This not only secures the hotel's dues but sets a precedent: governments can't dodge via silent pleadings or one-sided audits. For requisitioned providers, it's a shield against post-facto penny-pinching; for taxpayers, a call for upfront fiscal rigor in security ops.