Kashmir Impulse Desk

Srinagar, April 15 

The High Court of Jammu and Kashmir and Ladakh on Wednesday called for an effective, time-bound mechanism to ensure prompt payment of admitted claims to contractors, ruling that such dues cannot be withheld due to administrative delays or lack of funds.

A bench led by Justice Wasim Sadiq Nargal issued the direction while disposing of a petition filed by a local contractor and ordered authorities to release pending payments of 4.747 million rupees.

The court reiterated that the state is obligated to ensure timely disbursement of undisputed dues and cannot compel contractors to seek judicial intervention for enforcement of legitimate claims.

Referring to its earlier ruling in the case of M/s Saint Soldier Engineers and Contractors Pvt Ltd versus the Union Territory of Jammu and Kashmir, the court stressed the need for strict compliance with directions aimed at streamlining payment processes.

“Administrative delays, pending approvals or alleged paucity of funds cannot justify withholding admitted liabilities,” the bench said, adding that such reasons reflect internal inefficiencies that cannot be passed on to contractors.

The court observed that failure to release payments after availing services undermines principles of fairness and non-arbitrariness under Article 14 of the Constitution of India.

It also highlighted the financial strain caused by delayed payments, particularly on small-scale contractors operating with limited resources, noting that such practices adversely affect business viability.

The bench said authorities must ensure availability of funds before awarding contracts and cannot cite financial constraints later to deny payments, adding that the state, as a welfare entity, is expected to act responsibly in its dealings.