M/S Ag Construction Company vs. Union Of INDIA And Others

Held

The Court held that the writ petition had been rendered infructuous. This was based on the submission made by the respondents, supported by documentary evidence (Annexure R-2/1), that the petitioner had paid almost the entire disputed amount of Rs.85,05,477/-, with the remaining Rs.5,000/- to be paid within a month after GST deductions. Since there was no outstanding amount from the petitioner as of the date of the hearing, the Court found no live controversy to adjudicate. The ratio decidendi is that a legal challenge becomes moot when the underlying dispute is resolved by the party's subsequent actions, such as payment of dues. The Court did not make any specific findings on the merits of any potential GST dispute, as the case was disposed of on procedural grounds.

Facts

The petitioner, M/s AG Construction Company, filed a writ petition before the High Court of Punjab and Haryana at Chandigarh. The respondents were the Union of India and others. The petition concerned an outstanding amount of Rs.85,05,477/-. According to a chart (Annexure R-2/1) appended to the reply filed by the respondents, approximately Rs.85,00,000/- of this amount had already been paid. The remaining Rs.5,000/- was to be paid within one month after necessary GST deductions. As of the date of the hearing, there was no outstanding amount from the petitioner.

Key Issues

1. Whether the writ petition has become infructuous given that the outstanding amount has been paid or is to be paid shortly, rendering the dispute moot? Petitioner's contention: The petitioner did not explicitly argue any specific legal contention as the matter was resolved by the payment of dues. Respondents' contention: The respondents, through their reply and the appended chart, demonstrated that the entire disputed amount was either paid or would be paid shortly, thereby rendering the petition infructuous.