Karnail Singh vs. U T Of J And K Th Managing Director J And K Projects Construction Corporation LTD And Others

Held

The Court allowed the writ petition. It found that the respondents had unequivocally admitted their liability to pay the GST amount of Rs. 1,30,402/- to the petitioner. This admission was made in a communication dated 22.11.2021 from the Deputy General Manager, JKPCC Ltd., Unit Jammu, and was reiterated in the respondents' reply affidavit. The Court reasoned that in light of this clear admission, there was no impediment to directing the release of the admitted sum. The ratio decidendi is that where a statutory or contractual liability is admitted by the respondent authority, the High Court, in exercise of its writ jurisdiction, can direct the immediate release of such admitted dues to prevent undue hardship to the petitioner. The Court directed the respondents to release the GST amount of Rs. 1,30,402/- in favour of the petitioner as admitted by them.

Facts

The petitioner, Karnail Singh (M/s Mahadev Traders), filed a writ petition under Article 226 of the Constitution of India seeking the release of Rs. 1,30,402/- towards GST. This amount was related to work contracts allotted to the petitioner from September 2017 to March 2018. The respondents, various officials of J&K Projects Construction Corporation Ltd. (JKPCC), admitted in their reply affidavit that the Deputy General Manager, JKPCC Ltd., Unit Jammu, had requested the release of this GST amount in a communication dated 22.11.2021. The respondents further admitted that the GST due was not paid to the contractor, although the full and final payment for the work done had been made.

Key Issues

1. Whether the respondents are legally obligated to release the admitted GST amount of Rs. 1,30,402/- to the petitioner for work contracts awarded between September 2017 and March 2018, as per their own communication and reply affidavit. Petitioner's Contention: The petitioner argued that the respondents had admitted their liability to pay the GST amount of Rs. 1,30,402/- in their communication dated 22.11.2021 and further confirmed this admission in their reply affidavit. Therefore, the respondents should be directed to release this admitted amount. Respondents' Contention: The respondents, through their reply affidavit, admitted the petitioner's claim regarding the outstanding GST amount and the communication requesting its release. They did not dispute the amount or the basis of the claim, only denying allegations of malafide intentions.