State can't withhold dues after taking benefit of work, says HC on payment delays to contractors
Srinagar, April 16 -- The High Court of Jammu & Kashmir and Ladakh has ruled that once the State accepts and benefits from work executed, it cannot withhold admitted payments without lawful justification, holding that such dues constitute a "clear, enforceable legal right" of the contractor and must be released promptly.
Delivering the judgment, Justice Wasim Sadiq Nargal emphasized that the liability of the State "having once crystallized, cannot be diluted or defeated" by administrative excuses such as lack of funds or pending approvals.
The court further underlined that delayed payments, especially to small-scale enterprises, violate principles of equity, justice, and good conscience, and may attract statutory interest.
The ruling c...
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