
State Liability for Delayed Contractor Payments | No Financial Constraints Justify Withholding Admitted Dues After Bill Finalization : Andhra Pradesh HC
The Andhra Pradesh High Court has ruled that public sector undertakings cannot withhold payments for completed public works merely due to budgetary constraints, even after bills are formally finalized. This reinforces the principle that state instrumentalities are bound by contractual obligations and must pay admitted dues promptly, preserving the contractor’s right to claim interest in civil court - a critical precedent for infrastructure contractors across India.

