Sree Mandali Enterprises Partner vs. The Staste Of Ap
Original PDF →Facts
The petitioner completed irrigation works as per three agreements and received quality control certificates for the amounts due. However, the respondents failed to release the final bill amounts, causing financial loss to the petitioner.
Held
The Court directed the respondents to release the admitted amounts as per the quality control certificates within two months. The issue of interest was left to be determined based on the agreement terms.
Key Issues
Whether the inaction of the respondents in releasing the final bill amounts for completed works is arbitrary and violative of constitutional rights. Whether the petitioner is entitled to interest on the delayed payment.
Sections Cited
Not Applicable
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Cause title — parties, addresses and appearances
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: “…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. 59,70,638/-, 1) Rs. 24,45,349/- vide its Agreement No. 103/2024-25 for which the name of the work was O and M Removal of weed growth and repairs to shutters on KEB Canal from km 25.100 to km 54.000 and for the year 2024-25 2) Rs. 13,68,077/- vide its Agreement No. 104/2024-25 for which the name of the work was OandM Removal of weed growth on central channel direct and Mandapakala channel direct and its braches under Divi south section, Nagayalanka for the year 2024-25 3) Rs. 21,57,212/- vide its Agreement No. 105/2024-25 for which the name of the work was OandM such as Removal of weed growth on KEB canal from km 7.738 to km 25.000 and for the year 2024-25,for which the total amount was Rs. 59,70,638/-,for the completion of OandM 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 Articles 14, 16 and 1 of the Constitution of India and consequentially to direct the respondents releasing the final bills of total amount worth of Rs. 59,70,638/- 18percentage GST for execution of completion of Irrigation works under Irrigation Department as per agreement to the petitioner forthwith and pass such other order or orders as this Hon’ble Court may deem fit and proper in the circumstances of the case.”
The petitioner had been awarded the contract of three works as per the agreement No.103/2024-25, agreement No.104/2024-25, agreement No.105/2024-25 by the respondents. After execution of the aforementioned contract works, the respondents issued quality control certificate dated 23.09.2025 for a sum of Rs.30,48,814/-, quality control certificate dated 23.09.2025 for a sum of Rs.15,17,871/- and quality control certificate dated 23.09.2025 for a sum of Rs.25,05,442/-. 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 quality control certificate dated 23.09.2025 for a sum of Rs.30,48,814/-, quality control certificate dated 23.09.2025 for a sum of Rs.15,17,871/- and quality control certificate dated 23.09.2025 for a sum of Rs.25,05,442/-. 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 respondents to release the amounts to the petitioner in accordance with the quality control certificate dated 23.09.2025 for a sum of Rs.30,48,814/-, quality control certificate dated 23.09.2025 for a sum of Rs.15,17,871/- and quality control certificate dated 23.09.2025 for a sum of Rs.25,05,442/- issued by the respondents, within a period of two (2) 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: 17.11.2025 MH/JAK THE HONOURABLE SMT JUSTICE V.SUJATHA
WRIT PETITION NO: 28309/2025
Date: 17.11.2025 MH/JAK
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.