M/S Ndn Constructions vs. Chief Engineer (Civil) Bsnl And Anr

Held

The Court disposed of the writ petitions with liberty reserved to the petitioners to produce documents evidencing the deposit of the GST amount for the subject works to respondents No. 1 and 2 within one week from the date of the order. Upon verification of this fact, respondents No. 1 and 2 were directed to release the withheld GST amount to the petitioners within two weeks thereafter. The Court also reserved liberty for the petitioners to seek appropriate remedies for any surviving grievances arising from the subject works. The reasoning was based on the parties' submissions regarding the conditional release of GST upon proof of payment by the petitioner and the respondents' willingness to release it upon such proof. The Court aimed to facilitate the release of the admitted GST component by establishing a clear procedure for verification and payment.

Facts

M/s NDN Constructions (the petitioner) filed two writ petitions (CWP Nos. 13423 & 13428 of 2025) before the Himachal Pradesh High Court seeking release of admitted payments due from respondents No. 1 and 2 (BSNL). The Court, through several orders starting from May 7, 2026, directed the respondents to release the payments. Despite repeated adjournments and final opportunities, the admitted liability was not fully discharged. On August 18, 2026, the respondents informed the Court that the admitted liability had been cleared. However, during the hearing on August 21, 2026, the petitioner's counsel stated that while the admitted amounts were released, the Goods and Services Tax (GST) component, though passed for release, had not been paid to the petitioner.

Key Issues

1. Whether the respondents are liable to release the GST amount to the petitioner for the subject works, considering it has been passed for release. Petitioner's contention: The petitioner argued that the GST amount, although passed for release by the respondents, has not been paid to them. They asserted that they have already deposited the GST amount for the subject works and are willing to produce receipts as proof. Respondents' contention: The respondents (BSNL) argued that the GST amount has not been released because the petitioners have not yet provided proof of payment of the GST. They stated that upon production of documents evidencing GST deposit, the amount would be released. 2. What is the appropriate course of action to resolve the dispute regarding the release of the GST amount?