Himachal HC says Inclusive Bill Cannot Be Withheld for Want of Funds on GST contracts

The Himachal Pradesh High Court held that the State could not indefinitely withhold an admitted payment due to a government contractor merely because funds had not been received from the client department. The contract value of ₹4.50 crore was inclusive of GST, and the outstanding amount of ₹31.85 lakh had been acknowledged by the Public Works Department. Exercising jurisdiction under Article 226, the Court directed payment within two months, with interest at 6% in the event of default. The direction was confined to the admitted amount; the contractor was left free to pursue the balance claim separately.