Alla Salomi vs. The State Of Andhra Pradesh

Held

The Court allowed the writ petition. It directed the Official Respondents to pay a sum of Rs. 21,32,773.00/- to the Writ Petitioners as full and final settlement. This payment was to be made within a period of twelve (12) weeks from the date of the order, requiring the completion of all inter-departmental and intra-departmental administrative processes through cooperation and coordination. Subsequently, the said amount was to be transferred to the bank accounts of the Writ Petitioners within four (04) weeks thereafter. The petitioners were directed to submit their bank account details to the Competent Authority for effective compliance. The Court noted that the petitioners were agreeable to accept the amount indicated in the Written Instructions as full and final settlement if paid expeditiously. The issue of GST and interest was implicitly resolved by accepting the settlement amount.

Facts

The petitioners, Alla Salomi, M. Vijaya Bhaskar, and V. Appi Reddy, filed a writ petition challenging the action of the respondents in not paying bills for executed works. The total value of the works was Rs. 21,66,461/-. The petitioners claimed this amount along with 12% GST and interest. The respondents, including the State of Andhra Pradesh through various departments and local authorities, were responsible for the payment. The dispute arose over the final amount due, with the petitioners claiming Rs. 21,66,461/- and the Executive Engineer's written instructions indicating a balance amount of Rs. 21,32,773.00/- after quality control recovery. The petitioners expressed willingness to accept the latter amount as full and final settlement if paid expeditiously.

Key Issues

1. Whether the action of the respondents in not paying the bills for the executed works, as per the amounts claimed by the petitioners, is illegal and arbitrary, violating Articles 14, 16, and 21 of the Constitution of India? 2. Whether the petitioners are entitled to the claimed amount of Rs. 21,66,461/- along with 12% GST and interest, or the reduced amount of Rs. 21,32,773.00/- as indicated by the Executive Engineer? Petitioner's Arguments: The petitioners argued that the respondents' failure to pay the bills for the executed works was illegal, arbitrary, and violative of constitutional principles. They sought the release of the full amount claimed, including 12% GST and interest, for the completed works. Respondent's Arguments: The respondents, through the Executive Engineer's written instructions, indicated that the total value of work done was Rs. 24,17,644.00/-, with a quality control recovery of Rs. 2,84,871.00/-, resulting in a balance due to the petitioners of Rs. 21,32,773.00/-. They did not explicitly argue against the payment but presented a different calculation of the amount due.