Udayam Constructions vs. The State Of Andhra Pradesh

Held

The Court allowed the writ petition, directing the respondents to release the amount of Rs. 16,33,007/- to the petitioner. This amount represents the bill amount as per the instructions placed on record by the respondents. The Court further directed that any other higher amount payable to the petitioner should also be released. The payment, along with interest as per the entitlement determined in the Division Bench judgment in Writ Appeal No. 724 of 2021 and batch cases dated 12.10.2023, must be made within two months from the date of receipt of the order. The Court clarified that it is open for the petitioner to pursue their claim for a higher rate of interest before an appropriate forum. No order as to costs was made.

Facts

The petitioner, Udayam Constructions, filed a writ petition seeking the release of final bill amounts totaling Rs. 27,57,160/-, including GST, for O&M works completed under three agreements (No. 31/2022-23, 53/2022-23, and 91/2022-23) with the Water Resources Department. The petitioner contended that despite admitting the entitlement to the amount, the respondents had failed to make the payment, causing financial loss. The respondents, represented by the Government Pleader, admitted the claim but cited reasons for non-payment, including pending quality clearance for one agreement and non-receipt of the bill from the Sub Division for others. The total bill amount stated in the instructions was Rs. 16,33,007/-.

Key Issues

1. Whether the inaction of the respondents in releasing the final bill amounts for O&M works, despite the petitioner completing the work as per agreement, is illegal, arbitrary, and violative of Articles 14, 16, and 21 of the Constitution of India? Petitioner's arguments: The petitioner argued that the respondents' failure to release the admitted bill amounts, even after completion of the work, was arbitrary and high-handed, necessitating judicial intervention. They sought the release of the total claimed amount along with interest. Respondent's arguments: The respondents, through the Government Pleader, admitted the petitioner's claim but explained that the delay in payment was due to pending quality clearance for one set of works and non-receipt of bills from the Sub Division for others. They submitted a lower bill amount of Rs. 16,33,007/- based on available records.