Court Quashes Government's Bill Verification Report, Upholds Principles of Natural Justice
In a significant judgment delivered on February 11, 2026, the Jammu and Kashmir High Court ruled in favor of Hotel New Metro, directing the Union Territory of J&K to settle outstanding claims related to the hiring of the hotel premises for accommodating protected political persons. The court found that the respondents, including the Deputy Commissioner of Srinagar, violated principles of natural justice by failing to involve the petitioner in the bill verification process and relying on an ex-parte report.
The case stems from the hiring of Hotel New Metro to provide accommodation for protected individuals and security personnel, as directed by the Divisional Commissioner, Kashmir. The hotel was initially hired from November 18, 2020, to October 5, 2021, and subsequently re-hired at the district level from October 6, 2021, to May 31, 2022. Despite the services rendered, the hotel's claims were significantly reduced or left unsettled, prompting the petitioner to seek relief through the court.
Justice Rajesh Sekhri, presiding over the case, underscored the importance of adhering to the principles of natural justice. The court noted that the Bill Verification Committee, constituted nine months after the premises were de-hired, failed to engage the petitioner in the verification process. This omission amounted to a procedural injustice, as the petitioner was not given an opportunity to substantiate their claims or contest any discrepancies identified by the committee.
The judgment also highlighted the respondents' admission of hiring the hotel, which, according to the court, amounted to an acknowledgment of the petitioner's claims for the initial hiring period. By not contesting the claims during this period, the respondents were deemed to have admitted their liability.
As a result, the High Court quashed the order dated November 5, 2022, which established the Bill Verification Committee, along with the committee's report dated February 10, 2023. The court has mandated the respondents to liquidate the petitioner's claims within eight weeks of receiving the judgment, failing which an interest rate of 6% per annum will be applicable.
This ruling serves as a reminder of the judiciary's role in upholding procedural fairness and ensuring that government entities adhere to established legal principles when handling contractual obligations.
Bottom Line:
Petition allowed as respondents failed to verify claims and associated records of the petitioner Hotel during the hiring period of the premises for protected political persons, resulting in violation of principles of natural justice.
Statutory provision(s):
Constitution of India, 1950 Article 226, Civil Procedure Code, 1908 Order VIII Rule 3, Rule 5, Order XII Rule 6
