Talari Obulesu vs. The State Of Andhra Pradesh

Held

The Court allowed the writ petition with a direction to the respondents to return the EMD and FSD with GST to the petitioner. Additionally, the Court directed the respondents to pay interest on the amount payable for the work done, as per the entitlement vide the judgment of the Division Bench of this Court in Writ Appeal No. 724 of 2021 and batch of cases dated 12.10.2023. This payment is to be made within a period of two months from the date of receipt of a copy of the order. The Court also noted that it is open to the petitioner to agitate the claim for a higher rate of interest, if any, payable by the respondents, before an appropriate forum. No order as to costs was made. The Court did not expressly leave any issue undecided, as the respondents admitted the claim and the Court granted the relief sought based on the admitted facts and prior judicial pronouncements.

Facts

The petitioner, Talari Obulesu, a contractor, filed a writ petition seeking a direction to the respondents (State of Andhra Pradesh departments) to return his Earnest Money Deposit (EMD) and Full Security Deposit (FSD) along with GST total, and to pay interest on amounts due for works executed under the 'Neeru Chettu' scheme. The works were executed under Agreement No. 208SEA/2017-18 dated 21-05-2019 and Supplemental Agreement No. 04SEA/2019-2020. The petitioner contended that the respondents admitted his entitlement to the amounts but failed to make the payment, which he deemed arbitrary and high-handed. The respondents, through the learned Government Pleader for Irrigation, admitted the petitioner's claim and stated that the bill had been uploaded to CFMS and would be paid.

Key Issues

1. Whether the action of the respondents in not returning the EMD and FSD along with GST total, and not paying interest on works done by the petitioner, is illegal, arbitrary, and in violation of the principles of natural justice and Articles 14, 19(1)(g), and 21 of the Constitution of India? 2. Whether the respondents' actions violate G.O.RT No. 266 dated 15-02-2021, Memo No 1279341/FMU-WR.1/2020 dated 18-02-2021, and the orders passed by this Court in W.A No. 724 of 2021? Petitioner's Arguments: The petitioner argued that the non-payment of admitted amounts was arbitrary and high-handed, necessitating judicial intervention. The petitioner relied on G.O.RT No. 266, Memo No 1279341/FMU-WR.1/2020, and the Division Bench judgment in W.A No. 724 of 2021. Respondents' Arguments: The learned Government Pleader for Irrigation, while admitting the petitioner's claim, placed on record instructions from the Executive Engineer, Water Resources Department, stating that the bill had been uploaded to CFMS and would be paid.