Supreme Court Halts Rajasthan Recovery Proceedings Amid Refund Dispute

The Supreme Court has temporarily stayed recovery proceedings against the Rajasthan government regarding a refund to a contractor. The court's decision followed a challenge against a high court order dismissing the state’s plea to condone a delay in filing an appeal related to a contract breach.

The Supreme Court on Monday halted recovery proceedings against the Rajasthan government involving a refund to a contractor. This development arose from a petition led by advocate Kartikeya Asthana, challenging an August 2025 ruling by the Rajasthan High Court that dismissed the state's plea to accept a delayed appeal filing.

The appeal from the Rajasthan government was against a decree by a Kota commercial court ordering a refund of Rs 6.35 lakh to a contractor over a breached road construction contract. Justice M M Sundresh, leading the bench, issued a notice to the contractor and paused the recovery proceedings.

Asthana's plea attributed the delay to a change in government and ongoing lawyer appointments. The high court's previous dismissal was based on what the petition claimed was an erroneous assumption of falsity in the state's delay condonation application. Consequently, warrants had been issued against state properties, with some already seized.

(With inputs from agencies.)