Kashmir Impulse Desk

Srinagar, April 16 

The High Court of Jammu and Kashmir and Ladakh has directed authorities to establish an effective time-bound mechanism for the release of admitted payments to contractors, saying delays on grounds such as fund shortages or administrative approvals are not legally sustainable.

Justice Wasim Sadiq Nargal issued the direction while disposing of a petition filed by a local contractor, and ordered the release of Rs 47.47 lakh in outstanding dues.

The court said the state is obligated to ensure timely payment of admitted and undisputed liabilities and cannot force contractors to seek judicial intervention for enforcement of such claims.

It observed that withholding payments on grounds including administrative delay or alleged paucity of funds amounts to shifting internal inefficiencies onto executing agencies, which is impermissible in law.

The court further noted that failure to clear legitimate dues impacts small contractors and undermines financial viability, stressing that state authorities must ensure availability of funds before awarding contracts.

Reiterating earlier judicial findings, the court said non-payment of admitted liabilities violates principles of fairness under Article 14 of the Constitution, which mandates non-arbitrariness in state action.