M/S. Sri Sai Teja Engineers Private Limited vs. The State Of Andhra Pradesh
Original PDF →Facts
The petitioner, a private limited company, filed a writ petition seeking release of final bill amounts for irrigation works completed as per agreements. The respondents had issued quality control certificates but failed to release the payments, causing financial loss to the petitioner.
Held
The High Court directed the respondents to release the amounts due to the petitioner as per the quality control certificates within six months. The court also stated that any interest payable on delayed payments would be governed by the terms of the agreement.
Key Issues
The primary issue was the non-release of final bill payments by the government department for completed irrigation works, despite the issuance of quality control certificates.
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Cause title — parties, addresses and appearances
ORDER:-
This writ petition is filed under Article 226 of the Constitution of India seeking the following relief: “…to issue an appropriate Writ, Order or direction more particularly one in the nature of Writ of Mandamus declare the inaction on part of the respondents herein not releasing the final bill total amount worth of Rs.49,88,720/-, 1) Rs.3,64,365/- in respect of irrigation work vide Quality Control Certificate No.58883, dated 29.09.2025, 2) Rs.3,94,870/- in respect of irrigation work vide Quality Control Certificate No.58881, dated 26.09.2025, 3) Rs.3,94,870/- in respect of irrigation work vide Quality Control Certificate No.58886, dated 26.09.2025, 4) Rs.3,39,224/- in respect of irrigation work vide Quality Control Certificate No.58892, dated 07.10.2025, 5) Rs.3,64,117/- in respect of irrigation work vide Quality Control Certificate No.58891, dated 07.10.2024, 6) Rs.2,53,882/- in respect of irrigation work vide Quality Control Certificate No.58885, dated 26.09.2024, 7) Rs.1,58,165/- in respect of irrigation work vide Quality Control Certificate No.58745, dated 05.03.2025, 8) Rs.78,542/- in respect of irrigation work vide Quality Control Certificate No.58746, dated 15.07.2025, 9) Rs.3,95,023/- in respect of irrigation work vide Quality Control Certificate No.59824, dated 19.05.2025, 10) Rs.4,42,396/- in respect of irrigation work vide Quality Control Certificate No.58979, dated 20.05.2025, 11) Rs.4,42,166/- in respect of irrigation work vide Quality Control Certificate No.58980, dated 20.05.2025, 12) Rs.3,30,715/- in respect of irrigation work vide Quality Control Certificate No.59821, dated 12.05.2025, 13) Rs. 3,32,245/- in respect of irrigation work vide Quality Control Certificate No. 58981 dated 20.05.2025” 14) Rs. 3,04,835/- in respect of irrigation work vide Quality Control certificate No. 59822 dated 12.07.2025 and 15) Rs.3,93,315/- in respect of irrigation work vide Quality Control certificate No. 59823 dated 12.07.2025 under Water Resources Department as per agreements to the petitioner till today and causing heavy loss with interest even though total work were completed as per the agreements as illegal, arbitrary and violation of Articles 14, 16 and 21 of The Constitution of India and consequently direct the respondent to release the total final bill amount of Rs.49,88,720/- along with 18% GST, for the works under Water Resources Department as per agreement to the petitioner forthwith...”
W.P.NO.30977 OF 2025
The petitioner had been awarded the contract of work(s) by the Irrigation Department. After execution of the said contract, the respondents also issued quality control certificates to a tune of Rs.3,93,345/-, Rs.3,04,835/-, Rs.3,32,245/-, Rs.3,30,715/-, Rs.4,42,166/-, Rs.4,42,396/-, Rs.3,95,023/-, Rs.78,542/-, Rs.1,58,165/-, Rs.2,53,882/-, Rs.3,64,117/-, Rs.3,39,224/-, Rs.3,94,870, Rs.2,03,694/-, Rs.3,64,355/- respectively. As the payment of the said amounts has not been made by the respondents, the petitioner has approached this Court by way of this writ petition.
It is the contention of the petitioner that even though the respondents admitted that the petitioner is entitled for payment of the aforesaid sum of money, no payment is being made. The petitioner contends that such non-payment of money is clearly arbitrary and high-handed requiring the interference of this Court.
This Court, in various orders, including the judgment of a learned Single Judge of this Court dated 05.10.2021 in W.P.No.10038 of 2021 and batch had taken the view that such non-payment of dues is arbitrary and that such dues need to be cleared by the respondents at the earliest.
W.P.NO.30977 OF 2025
On the other hand, learned Government Pleader placed oral instructions stated that since the budget was not released by the Government, the bills were not paid to the petitioner. Soon after release of the budget by the Government, the bills will be paid to the petitioner, however, admitted the amount payable to the petitioner as per the quality control certificates filed by the petitioner to a tune of Rs.3,93,345/-, Rs.3,04,835/-, Rs.3,32,245/-, Rs.3,30,715/-, Rs.4,42,166/-, Rs.4,42,396/-, Rs.3,95,023/-, Rs.78,542/-, Rs.1,58,165/-, Rs.2,53,882/-, Rs.3,64,117/-, Rs.3,39,224/-, Rs.3,94,870, Rs.2,03,694/-, Rs.3,64,355/- respectively.
In view of the facts and circumstances submitted in the affidavit, and the directions of this Court in various cases and after hearing the submissions of learned counsel for the petitioner, this Writ Petition is disposed of with a direction to the respondents to release the amount to the petitioner in accordance with the quality control certificates dated 12.06.2025, 12.08.2025, 20.05.2025, 12.05.2025, 20.05.2025, 20.05.2025, 12.05.2025, 15.01.2025, 15.03.2025, 26.09.2025, 07.10.2025, 07.10.2025, 26.09.2025, 26.09.2025 and 26.09.2025 issued by the W.P.NO.30977 OF 2025 respondents within a period of six (06) months from the date of receipt of a copy of this order. No costs.
As far as interest component is concerned, if there is any subsisting clause in the agreement/work order envisaging payment of interest upon any amount which is due and payable, the same is binding upon both the parties.
Consequently, Miscellaneous Petitions, if any, pending in this Writ Petition shall stand closed.
____________________ JUSTICE V.SUJATHA Date :02.12.2025 LSP
Reproduced from the public record of the Andhra Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.