Sri Ratan Job Works And Material Suppliers vs. The State Of Andhra Pradesh

Held

The Court acknowledged the Petitioner's claim that the works were executed in 2022 and that more than three years have elapsed without payment. The Court directed that the work bills submitted by the Petitioner shall be examined by the constituted Expert Committee, and a report shall be submitted to the concerned authorities within a period of four months. If the work bills are found to be genuine, the Respondents are directed to disburse the amount to the Petitioner within a period of six weeks thereafter. The Court did not decide on the genuineness of the bills but mandated a timeline for their examination and subsequent payment if found genuine. The ratio decidendi is that administrative inaction and delays in payment for completed works, even pending inquiry, should be subject to judicial oversight with defined timelines.

Facts

The Petitioner, Sri Ratan Job Works And Material Suppliers, is a civil contractor who was awarded a contract by Respondent No. 3, Gudivada Municipality, for repairing 05 pushcarts. The agreed amount was Rs. 84,010/-. The Petitioner claims to have completed the work and submitted a bill. The bill was subsequently passed at Rs. 95,772/-, including 18% GST. Despite the bill being passed, the Petitioner has not received payment. The Respondents have initiated an inquiry into the genuineness of work bills submitted by the Petitioner and others, following adverse newspaper clippings and instructions from higher authorities. An expert committee was constituted on 13.12.2024 to verify the bills, but no time limit was set for its report.

Key Issues

1. Whether the action of the Respondents in not releasing the payment of Rs. 95,772/- to the Petitioner, despite the completion of assigned works and passing of the bill, is illegal and arbitrary, turning on principles of contract law and administrative action. Petitioner's contentions: The Petitioner argued that the works were completed as per the agreement, and the bill, including GST, was passed. The delay in payment is illegal and arbitrary. The Petitioner relied on the fact that the agreement was executed on 15.11.2022 and the works were completed in 2022, and more than three years have elapsed without payment. Respondents' contentions: The Respondents stated that adverse newspaper clippings prompted an inquiry into the genuineness of work bills. An expert committee has been constituted to examine the bills, and further action will be taken upon receiving its report. The Respondents did not provide a specific legal argument against the Petitioner's claim but indicated a procedural step was underway.