M. Bommayya vs. The-State Of Andhra Pradesh

Held

The Court allowed the writ petition. It directed the respondents to return the EMD and FSD along with GST to the petitioner. Furthermore, the Court ordered the respondents to pay interest on the amount payable for the work done, as per the entitlement established in the judgment of the Division Bench in Writ Appeal No. 724 of 2021 and batch of cases dated October 12, 2023. This payment is to be made within two months from the date of receipt of a copy of the order. The Court also noted that it is open for the petitioner to agitate the claim for a higher rate of interest, if any, before an appropriate forum. No order as to costs was made. The Court did not expressly leave any issue undecided.

Facts

The petitioner, M. Bommayya, filed a writ petition seeking the return of Earnest Money Deposit (EMD) and Full Security Deposit (FSD) along with Goods and Services Tax (GST) and interest on works done under the "Neeru Chettu" scheme, as per Agreement No. 146/2018-19 dated August 16, 2018. The petitioner contended that despite the respondents admitting the entitlement to the amount, no payment was made, which was arbitrary. The respondents, through the learned Government Pleader for Irrigation, admitted the petitioner's claim regarding EMD and FSD, noting that the bill amount of Rs. 5,56,000/- was paid on September 16, 2022, but EMD and FSD were yet to be paid. The court was also referred to a previous judgment in Writ Appeal No. 724 of 2021.

Key Issues

1. Whether the action of the respondents in not returning the EMD and FSD along with GST and interest on works done by the petitioner is illegal, arbitrary, and in violation of constitutional rights and government orders? (Question of law and fact, concerning Articles 14, 19(1)(g), 21 of the Constitution of India, G.O.RT No. 266 dated 15-02-2021, Memo No. 1279341/FMU-WR.I/2020 dated 18-02-2021, and orders in W.A No. 724 of 2021). Petitioner's contentions: The respondents' failure to return EMD and FSD with GST and interest is arbitrary and high-handed, requiring judicial intervention. The petitioner relies on G.O.RT No. 266, Memo No. 1279341, and the Division Bench judgment in W.A No. 724 of 2021. Respondent's contentions: The respondents, through the learned Government Pleader, admitted the petitioner's claim for EMD and FSD, stating that while the bill amount was paid, EMD and FSD were yet to be released. They placed on record written instructions from the Executive Engineer.