Nafees Ahmad vs. State Of U.P. And 2 Others

Held

The Court noted the statement made by the counsel for respondent nos. 2 and 3 that the petitioner's claim is not disputed and that the non-payment of GST was due to a shortage of funds. In light of this statement, the Court disposed of the petition with a direction. The petitioner was to file a fresh representation before respondent no. 2 within two weeks, along with a copy of the order. Respondent no. 2 was directed to pass a reasoned and speaking order within three months of receiving the representation. The Court also expressed its expectation that the admitted amount would be paid to the petitioner within the same three-month period. The ratio decidendi is that where a claim is undisputed and non-payment is due to financial constraints, the authorities should process the claim and make payments within a stipulated time frame after a formal representation.

Facts

The petitioner, Nafees Ahmad, filed a writ petition before the High Court of Judicature at Allahabad. The respondents were the State of U.P. and two other authorities. The dispute concerned an amount of GST. Upon instructions, the counsel for respondent nos. 2 and 3 stated that the petitioner's claim was not disputed, and non-payment of the GST amount was due to a shortage of funds. The High Court was informed that the admitted amount may be paid to the petitioner.

Key Issues

1. Whether the respondents are liable to pay the admitted GST amount to the petitioner, considering the dispute is not disputed by the respondents. (Question of law) Contentions: Petitioner: The petitioner sought payment of the disputed GST amount. Revenue/State: The counsel for respondent nos. 2 and 3 stated that the claim made by the petitioner is not disputed and the payment of GST amount has not been made owing to shortage of funds. They also stated that the admitted amount may be paid to the petitioner.