M/S. Udayam Constructions vs. The State Of Andhra Pradesh

Facts

M/s. Udayam Constructions (Petitioner) filed a writ petition against the State of Andhra Pradesh and various irrigation and water resources department officials (Respondents). The Petitioner sought release of final bill amounts totaling Rs. 49,95,836/- for Operation and Maintenance (O&M) works executed under three agreements dated 02.08.2023. The Petitioner claimed the works were completed as per the agreements, but the final bills, including GST components, were not being released, causing financial loss. The Petitioner sought a declaration that the inaction of the respondents was illegal and arbitrary, and a consequential direction for immediate release of the outstanding amounts.

Held

The Court noted that the respondents, through Respondent No. 7, admitted the amounts payable to the petitioner. The reason for non-payment was attributed to procedural delays, specifically the non-receipt of work bills from a sub-division and the ongoing scrutiny at the division office. The Court found that since the amounts were admitted, it was appropriate to direct the respondents to make the payments without keeping the writ petition pending. The Court directed the 7th respondent to make payments to the petitioner as per the quality control certificates issued by the respondents, amounting to Rs. 7,98,004/-, Rs. 10,79,509/-, and Rs. 18,37,967/-. These payments were to be made as expeditiously as possible, preferably within three months from the date of receipt of the order.

Key Issues

1. Whether the inaction of the respondents in releasing the final bill amounts for O&M works, despite the petitioner completing the work as per the agreements, is illegal, arbitrary, and violative of Articles 14, 16, and 21 of the Constitution of India? The Petitioner argued that the respondents admitted the entitlement to payment but failed to release the amounts, which was arbitrary and high-handed, necessitating court intervention. The Petitioner relied on the fact that the works were completed as per the agreements. The Respondents, through Respondent No. 7, admitted the amounts payable to the petitioner. However, they stated that the bills were not uploaded on the CFMS portal due to non-receipt of work bills from the Drainage Sub-Division, Repalle. The Respondent further indicated that the bills were under scrutiny at the division office and payment would be processed upon obtaining LOC from the Government.