M/S Malik And Co And Anr. vs. Union Territory Of J And K And Ors. (Housing And Urban Development)
Held
The Court held that it would meet the ends of justice to dispose of the writ petition at this stage by passing appropriate directions. The Court directed the respondents to release the balance admitted liability due to the petitioners for the construction work, along with admissible GST and interest. The payment is to be made strictly in accordance with the governing rules and regulations within eight weeks from the date of service of the order. The Court found that the respondents had acknowledged the admitted liability and that directing its release was appropriate given the circumstances. The principle underlying this decision is that the State should honor its contractual obligations and pay admitted liabilities promptly, especially when the work has been completed to satisfaction.
Facts
The petitioners, M/s Malik And Co. & Anr., are contractors who executed construction works at Swasth Bhawan, Bemina, Srinagar, as assigned by the respondents. The work was completed and inspected in May 2020. Final bills prepared by the Senior Manager of the respondents indicated a total payment of Rs. 19,81,00,000/-, of which Rs. 15,22,00,000/- was paid, leaving a balance of Rs. 1,39,84,269/- plus 13% GST. Despite the respondents acknowledging this admitted liability and assuring payment upon fund availability, the petitioners have not received the outstanding amount. The petitioners have made several representations and are facing financial hardship due to the delay, including interest on loans taken for the work. The writ petition seeks a mandamus to release the admitted liability with GST and interest.
Key Issues
1. Whether the respondents are legally obligated to release the admitted balance liability of Rs. 1,39,84,269/- along with 13% GST and interest to the petitioners, considering the execution and satisfactory completion of construction works? (Question of law and fact, concerning contractual obligations and principles of natural justice). Petitioner's arguments: The petitioners contended that since the respondents have admitted the liability, the writ petition should be disposed of at the threshold stage with directions for the release of the outstanding admitted liability, including 13% GST and interest at prevalent bank rates. They cited that Coordinate Benches of the High Court have disposed of similar matters at the threshold stage to save court time. Revenue/State's arguments: The judgment does not record any specific arguments from the respondents.
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Cause title — parties, addresses and appearances
ORDER 07.03.2025
Through the medium of the instant writ petition filed under the provisions of Article 226 of the Constitution of India, the petitioners have sought the issuance of writs/ directions in the nature of mandamus, for commanding the respondents to release in their favour an amount of Rs. 1,39,84,269/- along with 13% GST and interest at the prevalent bank, rate from the due date of payment of the said amount till the date of actual payment of the same, on account of admitted liability against execution of construction works at Swasth Bhawan, Bemina, Srinagar”.
The case of the petitioners in nutshell is that, they are “A Class” contractors/approved firm with Registration No. CE (RandB) K/28/Acy class civil 198
The judgment continues below.
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