Authority: High Court of Jammu & Kashmir and Ladakh at Jammu

Order Date: 14.08.2026

Case Overview

  • Parties: Petitioner – M/s Jai Laxmi Road Builders (proprietor Sh. Atul Sharma); Respondents – Union Territory of Jammu & Kashmir and its Public Works Department officials (Commissioner Secretary Public Works, Chief Engineer, Superintendent Engineer, Executive Engineer).
  • Contract Details: Allotted on 07.11.2019 for up‑gradation of road surface (wet mix macadam and 30 mm SDBC) on Gho‑Brahmana to Kothey Pathania link road, amount Rs 21,17,000. Agreement executed on 13.12.2019.
  • Work Execution: Commenced 12‑14 Nov 2019, completed by 13 Dec 2019 to the department’s satisfaction.
  • Payments Made:
  • CC‑1: Rs 6,50,000 paid on 14 Jan 2020.
  • CC‑2: Rs 8,00,000 paid on 30 Mar 2020 (originally prepared for Rs 16,21,000; remaining Rs 8,21,000 not released due to alleged fund shortage).
  • Petitioner’s Claim: Outstanding balance of Rs 8,21,000 with interest at 18% per annum from March 2020; filed writ petition on 14 Jun 2023 after numerous representations and a meeting convened on 28 Jan 2023 that failed to result in payment.
  • Respondents’ Defences: Alleged lack of administrative approval for excess work, claim of delay and laches (cause of action dated 13 Dec 2019), and existence of an arbitration clause.
  • Legal Arguments: Petitioner's counsel cited Clause 8 of the allotment letter allowing payment for necessary items, and relied on several Supreme Court and High Court precedents rejecting delay/laches and arbitration‑clause bars in similar public‑contract disputes.
  • Court’s Reasoning: The Court held that:
  • Presence of an arbitration clause is not an absolute bar to a writ petition (citing Uttar Pradesh Power Transmission Corp. Ltd. v. CG Power).
  • Delay and laches cannot defeat a claim when the government itself admits liability (citing Rattan Singh Parmar v. UT of J&K and Madras Port Trust v. Hymanshu International).
  • Respondents admitted the outstanding amount in the Running Accounts Bill dated 30 Mar 2020.
  • Clause 8 permits payment for necessary items discovered during execution; any procedural lapses are the respondents’ responsibility.

Final Outcome

  • The Court orders the respondents to release the outstanding sum of Rs 8,21,000 to the petitioner.
  • Interest to be paid at 6% per annum from the date of filing of the writ petition (14 Jun 2023) until actual payment.
  • The payment must be completed within three months of receipt of a copy of this order.

Topics: Court Judgment, Government Payment Dispute