Jammu & Kashmir High Court – Srinagar Bench
M/S Northern Engineers vs Ut Of J&K And Ors on 25 February, 2026
Author: Javed Iqbal Wani
Bench: Javed Iqbal Wani
Serial No. 101
Supplementary cause list
HIGH COURT OF JAMMU & KASHMIR AND LADAKH
AT SRINAGAR
WP(C) 2686/2024
M/S Northern Engineers ... Petitioner(s)
Through: Mr. Azhar Ul Amin, Sr. Advocate with
Mr. Irfan ahmad, Advocate
Vs.
UT of J&K AND ORS. ...Respondent(s)
Through: Mr. Faheem Shah, GA
Mr. Waseem Gul, GA
CORAM:
HON'BLE MR. JUSTICE JAVED IQBAL WANI, JUDGE
ORDER
25.02.2026
1. Petitioner in the instant petition filed under Article 226 of the
Constitution claims to be an enterprise under “the Micro Small and
Medium Enterprises Development Act, 2006” ( for short the Act of
2006) and possessed of registration thereunder the said Act, besides
being registered with the Department of Industries and Commerce
for manufacturing of various steel fabrication items including steel
tubular poles used for distribution of electricity.
2. It is stated that the respondent 3 placed two supply orders with
respondent 4 on 07.09.2018 and 22.11.2018 for an amount of Rs.
53,36,750/- and Rs. 25,54,800/- respectively for supply of 8 meter
long steel tubular poles, consequent to which, respondent 4 placed
the order of said poles with the petitioner vide orders dated
08.09.2018 and 24.11.2018 respectively, in furtherance whereof, the
petitioner supplied the said steel tubular poles to the respondent 3
under GR No. 602, 603 & 607 in the month of December 2018,
whereafter the, respondent 5 raised the final bills on 20.12.2018 and
09.09.2019, which bills came to be verified, certified and approved
by the competent authority and certificates thereof as well were
issued on 21.12.2018 in favour of the petitioner, entitling the
petitioner to receive the payment of Rs. 66,41,880/- within 45 days
of the receipt of the supplied items by the respondents under section
15 of the Act of 2006, however, the said bill remain pending unpaid
till 29th March 2023 whereafter a part payment thereof came to be
made in favour of the petitioner on 29.03.2023 for an amount of Rs.
29,02, 253/- against the amount of bill of Rs. 66,42,480/- with a
balance amount of Rs. 37,40,227/- remaining un-paid to the
petitioner.
3. Petitioner states that on account of the delayed payment by the
respondents entitled him to the statutory compound interest for the
entire amount Rs. 66,41,880/- from the appointed day in terms of
the Act of 2006 as also upon the balance amount of Rs. 37,40,227/-
till the date of actual payment is made to the petitioner under the
Act of 2006, and that since the respondents failed to make the said
payments due to the petitioner well within time including the said
interests, as such, the petitioner approached this Court through the
medium of the instant petition seeking therein the following reliefs:
a. “Issue a writ, order or direction including one in the
nature of Mandamus commanding the respondents to
pay the amount of Rs. 37,40,227/- against the
supplies received under GR No.602 and 603 of
12/2018 and GR No. 607 of 1/2018 in pursuance to
supply orders vide No. SICOP/MM/18-19/794-95
dated 08.09.2018 and No. SICOP/MM/18-
19/593/1697-99 dated 24.11.2018.
b. Issue a writ, order or direction including the one in
the nature of Mandamus directing the respondents to
pay the compound interest @ three times the bank
rate with monthly rest with effect from the appointed
day till its realization in terms of Section 16 of the
MSME Act.”
4. Objections to the petition have been filed by the respondent 3 alone
pursuant to the orders passed by this Court on 01.09.2025, wherein
respondent 3 being the intending department having received the
supplies from the respondents 4 & 5, has in the reply inter alia
stated at para 4 & 5 as under:-
“4. That against the claim of Rs. 5109600/- and Rs.
1532880/- aggregating to Rs. 6642480/- the office of
Executive Engineer, Electric Division- Kulgam has
released an amount of Rs. 2902253/- in favour of
General Manger J&K Small Scale Industries
Development Corporation Limited (SICOP) Srinagar for
its further disbursement to M/S Northern Engineers the
payment of which stands admitted by the petitioner in
petition himself, thereby leaving an amount of Rs.
3740227/- as liability on account of supply of material
under SAUBHAGYA Scheme.
5. That the funds under SAUBHAGYA Scheme have been
released only for execution part and not for supply part.
As soon as the funds for supply part under SAUBHAGYA
Scheme are released, the pending claim of the petitioners
will be cleared as priority basis. The respondents may be
given some reasonable time to complete the requisite
formalities for clearing the liability of the petitioner”.
Heard learned counsel for the parties and perused the record.
5. Mr. Azhar Ul Amin, appearing counsel for the petitioner while
making his submissions in line with the case setup in the petition,
invited the attention of this Court to the judgment passed by the
Coordinate Bench in case titled as “Union Territory of J&K & Anr.
Vs. Aibak Electric Industries being CM(M) No. 287/2023″ and
would submit that the said judgment squarely covers the case of the
petitioner rendering the respondents liable to make the payments
due to the petitioner for the supplies made along with the compound
interest in terms of Section 16 of Act of 2006.
6. On the contrary Mr. Faheem Shah, appearing counsel for
respondent 3 while opposing the submissions of Mr. Amin would
submit that the petitioner is not entitled to the grant of relief sought
in the petition in general and in particular the grant of compound
interest in terms of the Act of 2006, as according to Mr. Shah the
petitioner has never invoked the provisions of the Act of 2006
before “the council” under the Act and has directly approached this
Court invoking extra ordinary writ jurisdiction.
7. Insofar as the aforesaid plea of Mr. Shah is concerned, the
Coordinate Bench in the judgment of Union Territory of J&K
supra has specifically ruled that the failure on the part of the
department to carry out the mandate of sections 15 & 16 of the Act
would provide a cause of action to the supplier to directly approach
this Court by invoking its extra ordinary writ jurisdiction under
Article of the 226 of the Constitution. Thus, in view of the facts in
hand and having regard to the aforesaid position of law this bench
has no reason to take a view different than what has been taken by
the Coordinate Bench in the case supra.
Furthermore, since the application of the Act of 2006 is not
specifically denied by the respondents to the case of the petitioner
and also that the supplies made by the petitioner are admitted so
also the payments due to the petitioner, as such, the petitioner can
said to be well within his rights to seek enforcement of his rights
qua the delayed payments and interests thereof by invoking extra
ordinary writ jurisdiction, inasmuch as, for application of the
provisions of the Act of 2006.
8. Viewed thus for what has been observed, considered and analyzed
hereinabove, the instant petition deserves to be allowed and is
accordingly allowed, as a consequence whereof, the respondents in
general and respondent 3 in particular is commanded to pay the
balance amount of Rs. 37,40,227/- to the petitioner against the
supplies received under GR No.602 and 603 of 12/2018 and GR No.
607 of 1/2018 pursuant to supply orders dated 08.09.2018 and
24.11.2018 respectively along with interest in tune with the
provisions of section 16 of the Act of 2006 from the date the
amount became due to the petitioner till the date of its actual
payment.
9. Disposed of.
(JAVED IQBAL WANI)
JUDGE
SRINAGAR:
25.02.2026
“S.Nuzhat”