BharatTaxGST

Sree Mandali Enterprises vs. The State Of Andhra Pradesh

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WP/28359/2025HC Andhra PradeshGSTCNR APHC01054524202516 November 2025Bench: V.SUJATHA8 pages
For Petitioner: ANNAMNEEDI BALAKRISHNAFor Respondent: GP FOR IRRI AND CAD, GP FOR FINANCE PLANNING
AI SummaryPartly Allowed

Facts

The petitioner completed irrigation works under four agreements. The respondents issued Quality Control Certificates for a total sum of Rs. 57,50,464/- but failed to make the payment, citing budget release issues. The petitioner sought release of the final bill amount and GST.

Held

The Court directed the respondents to release the admitted amounts as per the Quality Control Certificates within six months. The issue of interest was made subject to the terms of the agreement.

Key Issues

Whether the respondents' inaction in releasing the admitted payment for completed works is arbitrary and illegal. Whether the petitioner is entitled to GST on the outstanding amount.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
APHC010545242025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3333] MONDAY,THE SEVENTEENTH DAY OF NOVEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SMT JUSTICE V.SUJATHA WRIT PETITION NO: 28359/2025 Between: 1. SREE MANDALI ENTERPRISES, PARTNER SANAKA KOTA VENKATA RENUKA RAVI VARA PRASAD S/O. NAGA BASAVAIAH, AGED ABOUT 39 YEARS, R/O. D.NO.1-2 NAGAYALANKA VILLAGE AND MANDAL, KRISHNA DISTRICT. ...PETITIONER AND 1. THE STATE OF ANDHRA PRADESH, , REP BY ITS PRINCIPLE SECRETARY TO GOVERNMENT IRRIGATION AND CAD WATER RESOURCES RESOURCES DEPARTMENT, SECRETARIAT BUILDINGS, A.P. SECRETARIAT, VELAGAPUDI, AMARAVATHI, GUNTUR DISTRICT. 2. THE STATE OF ANDHRA PRADESH, , REP. BY ITS PRINCIPAL SECRETARY, FINANCE DEPARTMENT, SECRETARIAT BUILDINGS, VELAGAPUDI, AMARAVATI, GUNTUR DISTRICT. 3. THE DISTRICT COLLECTOR, (IRRIGATION WING) MACHILIPATNAM, KRISHNA DISTRICT. 4. THE COMMISSIONER, COMMAND DEVELOPMENT AUTHORITY (CAD) WATER RESOURCES DEPARTMENT, GOVERNMENT OF ANDHRA PRADESH, VIJAYAWADA, N.T.R. DISTRICT. 2 VS,J W.P.No.28359 of 2025 5. THE SUPERINTENDING ENGINEER, , IRRIGATION AND WATER RESOURCES DEPARTMENT, IRRIGATION CIRCLE, VIJAYAWADA, N.T.R. DISTRICT. 6. THE EXECUTIVE ENGINEER, IRRIGATION AND WATER, RESOURCES DEPARTMENT, KRISHNA EASTERN DIVISION, VIJAYAWADA, KRISHNA 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 topleased 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. 56,96,692/-, 1) Rs. 15,37,049/-, vide its Agreement No. 18/2024-25, for which the name of work was O and M to Removal of weed growth by means of Manual and ploughing on Krishna Eluru Canal from km 25.700 to km 43.431 for the year 2024-25, 2) Rs. 13,03,101/-, vide its Agreement No. 19/2024-25, for which the name of work was O and M to Removal of weed growth by means of Chemical and Manual Ryves canal from km 2.750 to km 18.200 including channels/canals for the year 2024-25, 3) Rs. 16,24,617/-, vide its Agreement No. 20/2024-25, for which the name of work was O and M such as Removal of weed growth on Dosapadu channel from km. 12.800 to km. 21.898 and its branches in Jonnapadu section limits for the year 2024-25 , 4) Rs. 12,31,925/-, vide its Agreement No. 37/2024- 25, for which the name of work was O and M such as Removal of weed growth in Pamarru channel and its branches and allied works in upper Gudivada section, Pamarru for the year 2024-25,for which the total amount was Rs. 56,96,692/-,for the 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 Articles 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. 56,96,692/- plus 18 percent GST for execution of completion of Irrigation works under Irrigation Department as per agreement to the petitioner forthwith and to pass IA NO: 1 OF 2025 3 VS,J W.P.No.28359 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 leased to direct the respondents releasing the Final Bill amount of Rs. 56,96,692/- plus 18 percent GST, for execution of completion of O and M works under Irrigation Department as per agreement to the petitioner forthwith, pending disposal of the above writ petition and to pass Counsel for the Petitioner: 1. ANNAMNEEDI BALAKRISHNA Counsel for the Respondent(S): 1. GP FOR IRRI AND CAD 2. GP FOR FINANCE PLANNING 4 VS,J W.P.No.28359 of 2025

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. 56,96,692/-, 1) Rs. 15,37,049/-, vide its Agreement No. 18/2024-25, for which the name of work was O and M to Removal of weed growth by means of Manual and ploughing on Krishna Eluru Canal from km 25.700 to km 43.431 for the year 2024-25, 2) Rs. 13,03,101/-, vide its Agreement No. 19/2024-25, for which the name of work was O and M to Removal of weed growth by means of Chemical and Manual Ryves canal from km 2.750 to km 18.200 including channels/canals for the year 2024-25, 3) Rs. 16,24,617/-, vide its Agreement No. 20/2024-25, for which the name of work was O and M such as Removal of weed growth on Dosapadu channel from km. 12.800 to km. 21.898 and its branches in Jonnapadu section limits for the year 2024-25 , 4) Rs. 12,31,925/-, vide its Agreement No. 37/2024-25, for which the name of work was O and M such as Removal of weed growth in Pamarru channel and its branches and allied works in upper Gudivada section, Pamarru for the year 2024-25,for which the total amount was Rs. 56,96,692/-,for the 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 Articles 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. 56,96,692/- plus 18 percent 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.”

2.

The petitioner had been awarded the four contracts of work as per the agreement No.18/2024-25, agreement no. 19/2024-25, agreement no. 20/2024-25, agreement no. 37/2024-25 by the Irrigation department. After execution of the aforementioned contract works, the respondents issued Quality Control Certificate dated 23.09.2025 for a sum of Rs. 20,91,758/-, Quality Control Certificate dated 18.09.2025 for a sum of Rs. 20,52,558/-, and Quality Control Certificate dated 18.09.2025 for a sum of Rs.16,06,148/-, 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 Certificate dated 23.09.2025 for a sum of Rs. 20,91,758/-, Quality Control Certificate dated 18.09.2025 for a sum of Rs. 20,52,558/-, and Quality Control Certificate dated 18.09.2025 for a sum of Rs.16,06,148/-, 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 Certificate dated 23.09.2025 for a sum of Rs. 20,91,758/-, Quality Control Certificate dated 18.09.2025 for a sum of Rs. 20,52,558/-, and Quality Control Certificate dated 18.09.2025 for a sum of Rs.16,06,148/- issued by the respondents, within a period of six (6) 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: 28359/2025

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.