Contractor Not Responsible For Dept's Failure To Obtain Administrative Approvals; Govt Must Clear Admitted Dues: J&K&L High Court

The Jammu and Kashmir and Ladakh High Court has emphasized that it is not the job of a contractor to ensure that all administrative approvals, technical sanctions, or legal formalities are completed before undertaking contractual obligations.Justice Rajesh Sekhri underlined that it is the responsibility of the concerned department to clarify how work was executed in the absence of requisite approvals or sanctions.“… A Contractor while executing a work, duly allotted to him, proceeds with the execution on the firm belief and expectation that work is being executed by him at the instance of respondents after due approval.. It is for the concerned department to explain as to how the work came to be executed in the absence of requisite approvals or sanctions”, the court remarked. The case arose when Ma Constructions Company filed a petition seeking the payment of an outstanding amountwhich was due for work completed under various government contracts. Despite executing the work within stipulated timelines and receiving partial payment, the petitioner faced delays in the release of the remaining dues. The company had already exhausted legal remedies by sending a legal notice in May 2022, but the respondents acknowledged the liability without making any payments.Justice Sekhri's observations in the judgment were critical in addressing the issue of pending payments and the procedural delays involved. The Court pointed out that while it was claimed the petitioner had executed work "in excess" of the original contract without administrative approval, evidence submitted by the petitioner confirmed that the work had been ratified and acknowledged by the department. Moreover, despite repeated confirmations from the respondents regarding the admitted liability, the payment was withheld, citing a lack of funds.The Court firmly rejected the argument that the petitioner was responsible for the department's failure to obtain proper approvals, noting that the petitioner had proceeded with the work based on the belief that all formalities were duly completed by the government. Justice Sekhri stressed that contractors should not be penalized for the administrative lapses of the concerned departments, particularly when their work was executed in good faith and to the satisfaction of the authorities.The court added, “… The petitioner having expended the money after availing loan facility from the bank is entitled to be paid for the work done. He cannot be deprived of the admitted liability on the premise that department is short of funds.In view of the above legal principle the court ordered the respondents to clear the outstanding amount along with interest at 6% per annum within six weeks, underscoring the importance of fulfilling contractual obligations in a timely manner.Case Title: M/s Rightway Construction Company Vs UT Of J&KCitation; 2025 LiveLaw (JKL) 318Click Here To Read/Download Judgment

Contractor Not Responsible For Dept's Failure To Obtain Administrative Approvals; Govt Must Clear Admitted Dues: J&K&L High Court

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