P Vijaya Bhaskar Reddy vs. The State Of Andhra Pradesh

Held

The Court held that the action of the respondents in withholding the final bill amounts, despite the works being completed and bills prepared, was illegal and arbitrary. The Court noted that the respondents' reason for non-payment was insufficiency of funds, but acknowledged that there was no dispute regarding the works or the bill amounts. Citing the precedent set in S. Srinivas Vs. State of Andhra Pradesh and others, the Court reiterated that withholding amounts legitimately due to a contractor after work completion is violative of Article 21 of the Constitution, impacting the petitioner's right to life with dignity. The Court directed the respondents to clear the bills and release the total amount of Rs. 9,52,284/- within two weeks of receiving the order. Additionally, the Court ordered payment of interest at 12% per annum, to be computed from one month after the submission of the bills until the date of payment. No issue was expressly left undecided.

Facts

The petitioner, P. Vijaya Bhaskar Reddy, filed a writ petition seeking payment of final bill amounts totaling Rs. 9,52,284/- for three works of silt removal under agreements dated October 14, 2019. The petitioner had completed the works, and quality certificates were issued on October 9, 2020. Despite part payments and final bills being prepared, the respondents (State of Andhra Pradesh and others) had not released the balance amounts, citing insufficiency of funds. The petitioner argued that the delay in payment, even after four years, caused financial hardship and violated his rights. The respondents failed to file a counter affidavit despite adjournments.

Key Issues

1. Whether the action of the respondents in withholding the final bill amounts totaling Rs. 9,52,284/- for completed works, even after issuance of quality certificates, is illegal, arbitrary, and violative of the petitioner's rights. Petitioner's arguments: The petitioner contended that the non-payment of legitimate dues after completion of works and issuance of certificates constitutes illegal and arbitrary action. He relied on the High Court's decision in S. Srinivas Vs. State of Andhra Pradesh and others, which held that withholding legitimate amounts is illegal, arbitrary, unjust, and violative of Article 21 of the Constitution of India, as it deprives a person of their rightful earnings and impacts their dignity. The petitioner also cited the Apex Court's observation in Secretary, Irrigation Department, Government of Orissa and others V. G.C. Roy regarding compensation for deprivation of money, and the High Court of Andhra Pradesh's view in J. Devendra Reddy V Kakatiya University and another that withholding payable amounts is patent arbitrariness. Respondent's arguments: The judgment records no arguments from the respondents.