In a strongly worded judgment, the Jammu and Kashmir and Ladakh High Court has directed the Union Territory administration to immediately release nearly ₹98 lakh owed to a contractor, while also paying interest on the delayed amount. Justice Wasim Sadiq Nargal, sitting at Jammu, passed the order on 26 September 2025, and expressed concern over what he called a "systemic malaise" of government departments withholding admitted dues.
Background
The case was filed by M/s Saint Soldier Engineer and Contractor Pvt. Ltd., through its director Sham Singh Jamwal, a 66-year-old registered government contractor from Jammu. Back in 2015, Jamwal's firm was awarded a road construction project for the Dera Camp–Nikowal Sai stretch. Initially valued at just over ₹50 lakh, the project was later expanded due to local objections, with new specifications including bitumen macadam and an additional carpet layer. This raised the cost to over ₹2.37 crore.
The work was completed in 2017, and officials, including the Executive Engineer, acknowledged the dues. However, a balance of ₹97,87,012 was never released. The petitioner sent repeated representations, but the department cited "non-availability of funds." Left with no choice, Jamwal approached the High Court.
Court's Observations
The bench was unsparing in its criticism of the administration. Justice Nargal remarked,
"Once liability is admitted and the State continues to enjoy the fruits of the work executed by the petitioner, it cannot be permitted to turn around and deny payment on the plea of limitation."
The court found that the government’s defence that the claim was time-barred was untenable. Since the liability had been acknowledged multiple times, including in 2018 and 2020, the judge held that each day of non-payment was a continuing violation.
He went further, pointing out that such behaviour erodes public trust:
"If contractors are compelled to knock at the doors of the Court day in and day out for release of legitimate dues, the fault lies not with the petitioner but with the respondents."
The judgment also underscored that the State, unlike a private party, is bound by constitutional obligations of fairness. Citing Article 14 of the Constitution, the court said withholding admitted payments amounts to arbitrariness and violates the principles of equality before law.
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Decision
In his final order, Justice Nargal directed the Public Works Department to release the outstanding sum of ₹97,87,012 within four weeks, along with 6% interest calculated from 2017, the year the work was completed. He added that if payments were delayed due to official negligence, the interest burden should be recovered from the salaries of erring officers rather than the public exchequer.
The judge also went a step further, instructing the Chief Secretary of the Union Territory to frame a Standard Operating Procedure ensuring no admitted dues of contractors remain pending beyond 60 days after final bill submission.
With this order, the court made it clear that administrative excuses like "paucity of funds" will no longer shield the government from its financial obligations.
Case Title: M/s Saint Soldier Engineer and Contractor Pvt. Ltd. v. Union Territory of Jammu & Kashmir & Ors.
Case Number: WP(C) No. 2472/2022
