BharatTaxGST

A G R N Murthy vs. The State Of Andhra Pradesh

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WP/29876/2025HC Andhra PradeshGSTCNR APHC01056912202530 November 2025Bench: V.SUJATHA6 pages
For Petitioner: G SIMHADRIFor Respondent: GP FOR IRRI AND CAD, GP FOR FINANCE PLANNING
AI SummaryPartly Allowed

Facts

The petitioner, a contractor, sought payment for completed maintenance works on reservoir projects. The respondents admitted the amounts due as per quality control certificates but cited a lack of budget release for the delay.

Held

The Court directed the respondents to release the admitted amounts as per the quality control certificates within three months. The issue of interest was left to be determined by the existing clauses in the agreement.

Key Issues

The primary issue was the non-payment of admitted dues for completed contract work. 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
APHC010569122025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3333] MONDAY,THE FIRST DAY OF DECEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SMT JUSTICE V.SUJATHA WRIT PETITION NO: 29876/2025 Between: 1. A G R N MURTHY, S/O.BUTCHAIAH , AGED ABOUT 52 YEARS, CONTRACTOR, R/O D. NO. 8-132-2, PADAVEEDI, AMBAJIPETA, DR.B.R. AMBEDKAR KONASEEMA DISTRICT. ...PETITIONER AND 1. THE STATE OF ANDHRA PRADESH, REP.BY PRINCIPAL SECRETAIY, IRRIGATION AND WATER RESOURCES DEPARTMENT, SECRETARIAT, VELAGAPUDI, AINARAVATHI, GUNTUR DISTRICT. 2. THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, FINANCE DEPARTMENT, SECRETARIAT, VELAGAPUDI,, AINARAVATHI, GUNTUR DISTRICT. 3. THE COMMISSIONER CAD, VIJAYAVVADA, GOVERNMENT OF ANDHRA PRADESH, VIJAYAWADA, N.T.R. DISTRICT. 4. THE ENGINEERINCHIEFIW WATER RECOURCES DEPARTMENT, A.P.VIJAYAWADA, KRISHNA DISTRICT. 5. THE SUPERINTENDING ENGINEER, P.L.P.L.M.C, TUNI CIRCLE- 533401, KAKINADA DISTRICT. 6. THE EXECUTIVE ENGINEER, P.LP.L.M.C. DIVISION NO.2, DOWLAISWARAM- 533125, EAST GODAVARI DISTRICT. 7. THE SUPERINTENDING ENGINEER, DOWLAISWARAM CIRCLE, DOWLAISWARAM, 533125, EAST GODAVARI DISTRICT. 8. THE EXECUTIVE ENGINEER, GODAVARI CENTRAL DIVISION, AMALAPURAM, DR.B.R.AMBEDKAR KONA SEENIA DISTRICT. ...RESPONDENT(S): Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ, order direction more particularly one in the nature of Writ of Mandamus or declaring the action of the Respondents herein in not release amounts 1) in respect of Annual Maintenance for Operation and Maintenance of Radial Gates,Head Sluice, Electrical equipment and Manual Establishment of Bhupathipalem Reservoir Project Head Works for the year 2023-2025 (i.e.from Date of Agreement to 12-06-2023, L.S.I. and Final amount Rs.21,60,740/- (3,83,926/-GST) Total Rs. 25,50,000/- (2) in respect of Annual Maintenance for Operation and Maintenance of Radial Gates, Head Sluice, Electrical equipment and Manual Establishment of Bhupathipalem Reservoir Project Head Works for the year 2024-2025 (Date of Suppli. Agreement to 03-09-2024,L.S.E and Final amount Rs.2,54,000/- (46,000/- GST) Total Rs. 3,00,000/- (3) in respect of Annual Maintenance for Operation and Maintenance of Radial Gates, Head Sluice, Electrical equipment and Manual Establishment of Bhupathipalem Reservoir Project Head Works for the year 2022-2023 (Date of Agreement to 24-06-2022, L.S.L and Final amount Rs.25,21,898/-(3,28,102/-GST) Total Rs. 28,50,000/- under the 6th and 7th respondents and (4) for Annual Maintenance Estimate for Operation and Maintenance of Old Venkatanagaram Pumping Scheme for the year 2023-2024, Final Bill Amount Rs.l0,71,688/(Rs.l,18,539/-GST) Total Rs.l 1,90,227/- (5) for Annual Maintenance Estimate for Operation and Maintenance of Old Venkatanagarain Pumping Scheme for the year 2022- 2023, Final Bill Amount Rs.8,66,237/(Rs.45,087/-GST) Total Rs.9,1 l,234/- under the 8th and 9th respondents, Final amounts Total Rs.78,01,461/- (including GST) even after finalizing the bills, in spite of repeated requests as illegal, arbitrary, unreasonableand violative of Articles 14, 16 and 21 of Constitution of India and consequently direct the respondents herein forthwith to release Second and Final amount in my favour along with interest 24 p.a., in favour of Petitioner along with interest 24 p.a., and pass IA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased pleased to direct the respondents herein forthwith to release 1) in respect of Annual Maintenance for Operation and Maintenance of Radial Gates, Head Sluice, Electrical equipment and Manual Establishment of Bhupathipalem Reservoir Project Head Works for the year 2023-2025 (i.e. from Date of Agreement to12-06-2023, L.S.I. and Final amount Rs.21,60,740/-/(+3,83,926/- GST ) Total Rs.25,50,000/- (2) in respect of Annual Maintenance for Operation and Maintenance of Radial Gates, Head Sluice, Electrical equipment and Manual Establishment of Bhupathipalem Reservoir Project Head Works for the year 2024-2025 (Date of Suppli. Agreement to 03-09- 2024, L.S.I. and Final amount Rs.2,54,000/- (+46,000/-GST) Total Rs. 3,00,000/- (3) in respect of Annual Maintenance for Operation and Maintenance of Radial Gates, Head Sluice, Electrical equipment and Manual Establishment of Bhupathipalem Reservoir Project Head Works for the year 2022-2023 (Date of Agreement to 24-06-2022,L.S.I. and Final amount Rs.25,21,898/-/(+3,28,102/-GST) Total Rs. 28,50,000/-under the 6th and 7th respondents and (4) for Annual Maintenance Estimate for Operation and Maintenance of Old Venkatanagaram Pumping Scheme for the year 2023- 2024, Final Bill Amount Rs.l0,71,688/(Rs.l,18,539/-GS T) Total Rs. 11,90,227/- (5) for Annual Maintenance Estimate for Operation and Maintenance of Old Venkatanagaram Pumping Scheme for the year 2022- 2023, Final Bill Amount Rs.8,66,237/(Rs.45,087/-GST) Total Rs.9,11,234/- underthe 8th and 9th respondents. Final amounts Total Rs.78,01,461/- (including GST) even after finalizing the bills, along with interest 2AVo p.a., pending disposal of the Writ Petition and pass Counsel for the Petitioner: 1. G SIMHADRI Counsel for the Respondent(S): 1. GP FOR IRRI AND CAD 2. GP FOR FINANCE PLANNING The Court made the following:

ORDER:

The present writ petition came to be filed under Article 226 of the Constitution of India seeking the following relief: “…1) in respect of Annual Maintenance for Operation and Maintenance of Radial Gates,Head Sluice, Electrical equipment and Manual Establishment of Bhupathipalem Reservoir Project Head Works for the year 2023-2025 (i.e.from Date of Agreement to 12- 06-2023, L.S.I. and Final amount Rs.21,60,740/- (3,83,926/-GST) Total Rs. 25,50,000/- (2) in respect of Annual Maintenance for Operation and Maintenance of Radial Gates, Head Sluice, Electrical equipment and Manual Establishment of Bhupathipalem Reservoir Project Head Works for the year 2024-2025 (Date of Suppli. Agreement to 03-09-2024,L.S.E and Final amount Rs.2,54,000/- (46,000/-GST) Total Rs. 3,00,000/- (3) in respect of Annual Maintenance for Operation and Maintenance of Radial Gates, Head Sluice, Electrical equipment and Manual Establishment of Bhupathipalem Reservoir Project Head Works for the year 2022- 2023 (Date of Agreement to 24-06-2022, L.S.L and Final amount Rs.25,21,898/-(3,28,102/-GST) Total Rs. 28,50,000/- under the 6th and 7th respondents and (4) for Annual Maintenance Estimate for Operation and Maintenance of Old Venkatanagaram Pumping Scheme for the year 2023-2024, Final Bill Amount Rs.l0,71,688/(Rs.l,18,539/-GST) Total Rs.l 1,90,227/- (5) for Annual Maintenance Estimate for Operation and Maintenance of Old Venkatanagarain Pumping Scheme for the year 2022-2023, Final Bill Amount Rs.8,66,237/(Rs.45,087/-GST) Total Rs.9,1 l,234/- under the 8th and 9th respondents, Final amounts Total Rs.78,01,461/-(including GST) even after finalizing the bills, in spite of repeated requests as illegal, arbitrary, unreasonableand violative of Articles 14, 16 and 21 of Constitution of India and consequently direct the respondents herein forthwith to release Second and Final amount in my favour along with interest 24 p.a., in favour of Petitioner along with interest 24 p.a., ….”

2.

The petitioner had been awarded the contract of two works as per the agreements dated 05.072023 by the respondents. After execution of the aforementioned contract works, the respondents issued quality control certificates for two works i.e., 1) dated 16.09.2025 for a sum of Rs.13,25,959/-, 2) dated 11.03.2025 for a sum of Rs.11,26,783/-. 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.

3.

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.

4.

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.

5.

On the other hand, learned Assistant Government Pleader on oral instructions submits that the admitted amount payable to the petitioner as per the quality control certificates 1) dated 16.09.2025 for a sum of Rs.13,25,959/- , 2) dated 11.03.2025 for a sum of Rs.11,26,783/-. 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.

6.

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.

7.

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 amounts to the petitioner in accordance with the quality control certificates 1) dated 16.09.2025 for a sum of Rs.13,25,959/-, 2) dated 11.03.2025 for a sum of Rs.11,26,783/- issued by the respondents, within a period of three (3) 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.