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

Held

The Court allowed the writ petition. It directed the respondents to release the admitted gross amount payable to the petitioner, which was Rs. 24,86,237/-, along with any other higher amount found to be payable. The Court also directed that interest be paid as per the entitlement established in the Division Bench judgment of this Court in Writ Appeal No. 724 of 2021 and batch of cases dated 12.10.2023. The payment was to be made within two months of receiving a copy of the order. The Petitioner was granted liberty to pursue their claim for a higher rate of interest before an appropriate forum. The Court noted that the Petitioner claimed Rs. 36,66,392/-, but the instructions indicated a gross payable amount of Rs. 24,86,237/-.

Facts

M/s Udayam Constructions (Petitioner) filed a writ petition seeking a direction to the State of Andhra Pradesh and others (Respondents) to release the final bill amounts totaling Rs. 36,66,392/- for O and M works under the Water Resources Department. The Petitioner contended that despite the Respondents admitting entitlement to the amount, payment was withheld, which was arbitrary. The Respondents, through the learned Government Pleader, admitted the claim but stated that bills could not be uploaded due to insufficient budget under the relevant Head of Account, promising upload after budget allocation. A discrepancy was noted between the Petitioner's claimed amount and the gross amount payable shown in the instructions.

Key Issues

1. Whether the inaction of the respondents in releasing the final bill amounts to arbitrary and illegal action violating Articles 14, 16, and 21 of the Constitution of India? 2. Whether the Petitioner is entitled to the release of the final bill amounts, and if so, to what extent? Petitioner's Arguments: The Petitioner argued that the non-payment of admitted amounts was arbitrary and high-handed, warranting the Court's interference. They sought the release of the total claimed amount of Rs. 36,66,392/- with interest. Respondents' Arguments: The Respondents, while admitting the claim, submitted that the delay in payment was due to a lack of sufficient budget under the relevant Head of Account. They assured that the bills would be uploaded upon budget allocation and prayed for appropriate orders.