Peethala Sesharao vs. The State Of Andhra Pradesh
Original PDF →Facts
The petitioner, a contractor, filed a writ petition seeking release of final bill amounts for completed O and M works under the Irrigation Department. The respondents admitted the amounts were due but cited budget non-release as the reason for non-payment.
Held
The High Court directed the respondents to release the admitted bill amounts to the petitioner within four months. The court also noted that any interest component would be binding if stipulated in the agreement.
Key Issues
The primary issue was the arbitrary inaction of the respondents in releasing the admitted payment for completed contract works. The court also considered the petitioner's claim for interest on the delayed payment.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORDER:
The present writ petition came to be 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 amount worth of Rs. 27,16,051/-, 1) Amount of Rs. 1,38,894/- vide Agreement No. 01 D/2024-25 vide M.Book No. 719GE, 2) Amount of Rs.3,99,228/- vide Agreement No. 02D/2024-25 vide M.Book No. 719GE, 3) Amount of Rs. 2,87,475/- vide Agreement No. 03D/2024-25 vide M.Book No. 719GE 4) Amount of Rs. 1,57,675/- vide Agreement No. 04D/2024-25 vide M.Book No. 719GE, 5) Amount of Rs. 1,61,470/- vide Agreement No. 05D/2024-25 vide M.Book No. 1615GE, 6) Amount of Rs. 2,73,277/- vide Agreement No. 06D/2024-25 vide M.Book No. 716GE, 7) Amount of Rs. 3,28,037/- vide Agreement No. 07D/2024-25 vide M.Book No. 1851GE, 8) Amount of Rs. 0 3,04,158/- vide Agreement No. 08D/2024-25 vide M.Book No. 1851GE, 9) Amount of Rs. 1,03,645/- vide Agreement No. 09D/2024-25 vide M.Book No. 716GE 10) Amount of Rs. 2,20,581/- vide M.Book No. 1226GE, 11) Amount of Rs. 2,37,373/- vide Agreement No. 125D/2024-25 vide M.Book No. 1859GE, with interest of execution and completion of O and M works under Irrigation department as per agreement, to the petitioner till today and causing heavy loss with interest even though total work was completed as per the agreement as illegal, arbitrary and violative of Article 14, 16 and 21 of the Constitution of India and consequentially to direct the respondents releasing the final bills of total amount worth of Rs. 27,16,051/- plus 18percentage GST for execution of completion of O and M works under Irrigation Department as per agreement, to the petitioner forthwith…... ”
The petitioner had been awarded the contract of eleven works as per the agreements, dated 20.07.2024 by the respondents. After execution of the aforementioned contract works, the respondents issued eleven quality control certificates, dated 16.07.2025 for a sum of Rs.1,38,894/-, dated 15.07.2025 for a sum of Rs.3,99,228/-, dated 15.07.2025 for a sum of Rs.2,87,475/-, dated 15.07.2025 for a sum of Rs.1,57,675/-, dated 15.07.2025 for a sum of Rs.1,61,470/-, dated 15.07.2025 for a sum of Rs.2,73,277/-, dated 28.05.2025 for a sum of Rs.3,28,037/-, dated 28.05.2025 for a sum of Rs.3,04,158/-, dated 16.07.2025 for a sum of Rs.1,03,645/-, dated 10.09.2025 for a sum of Rs.2,20,581/- and dated 10.09.2025 for a sum of Rs.2,37,373/-. 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 amount, 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.
On the other hand, learned Assistant Government Pleader on oral instructions submits that the admitted amount payable to the petitioner as per the eleven quality control certificates, dated 16.07.2025 for a sum of Rs.1,38,894/-, dated 15.07.2025 for a sum of Rs.3,99,228/-, dated 15.07.2025 for a sum of Rs.2,87,475/-, dated 15.07.2025 for a sum of Rs.1,57,675/-, dated 15.07.2025 for a sum of Rs.1,61,470/-, dated 15.07.2025 for a sum of Rs.2,73,277/-, dated 28.05.2025 for a sum of Rs.3,28,037/-, dated 28.05.2025 for a sum of Rs.3,04,158/-, dated 16.07.2025 for a sum of Rs.1,03,645/-, dated 10.09.2025 for a sum of Rs.2,20,581/- and dated 10.09.2025 for a sum of Rs.2,37,373/-. He further submits 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.
Learned counsel for the petitioner agreed for payment of final bill as per the quality control certificates as stated by the learned Assistant Government Pleader.
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 respondent Nos.2 to 7 to release the amounts to the petitioner in accordance with eleven quality control certificates, dated 16.07.2025 for a sum of Rs.1,38,894/-, dated 15.07.2025 for a sum of Rs.3,99,228/-, dated 15.07.2025 for a sum of Rs.2,87,475/-, dated 15.07.2025 for a sum of Rs.1,57,675/-, dated 15.07.2025 for a sum of Rs.1,61,470/-, dated 15.07.2025 for a sum of Rs.2,73,277/-, dated 28.05.2025 for a sum of Rs.3,28,037/-, dated 28.05.2025 for a sum of Rs.3,04,158/-, dated 16.07.2025 for a sum of Rs.1,03,645/-, dated 10.09.2025 for a sum of Rs.2,20,581/- and dated 10.09.2025 for a sum of Rs.2,37,373/- issued by the respondents, within a period of four (4) months from the date of receipt of a copy of this order.
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. There shall be no order as to costs.
Consequently, Miscellaneous Petitions, if any, pending shall stand closed.
______________________
JUSTICE V.SUJATHA Date: 01.12.2025 KGR
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.