Summary
- The Bombay High Court has imposed ₹5 lakh costs on the State of Maharashtra for dragging a contractor into nearly ten years of unnecessary litigation over a penalty demand contrary to settled law.
- The Court emphasized that the State must act as a model litigant and avoid needless litigation, highlighting its responsibility to seek proper legal advice.
- It found that the penalty proceedings against the contractor were legally unsustainable and based on a fundamental jurisdictional defect.
- The ruling serves as a warning against adversarial state conduct and calls for a more conciliatory approach in governmental litigation practices.
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