Sri. M/S Sreehith Infrastructure vs. The State Of Andhra Pradesh

Held

The High Court allowed the writ petition. The Court directed the respondents to return the EMD and FSD to the petitioner. Furthermore, the Court directed the respondents to pay interest on the amount in the final bill as per the petitioner's entitlement, referencing the judgment of the Division Bench of the High Court in Writ Appeal No.724 of 2021 and batch of cases dated 12.10.2023. These directions were to be complied with within a period of two months from the date of receipt of a copy of the order. The Court also noted that it was 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.

Facts

The petitioner, M/s Sreehith Infrastructure, represented by its proprietor Anil Kumar Makkineni, filed a writ petition seeking the return of Earnest Money Deposits (EMD) and Full Security Deposits (FSD) along with Goods and Services Tax (GST) and interest. The petitioner had executed works under the 'Neeru Chettu' scheme, specifically improvements to the B.Yaleru Ml tank near B.Yaleru Village in Anantapuramu District, as per Agreement No. 192 SEA/2018-19 dated 08-02-2019. The petitioner contended that despite the respondents admitting entitlement to the amounts, no payment was made, constituting arbitrary and high-handed action. The respondents, through the learned Government Pleader for Irrigation, acknowledged the claim and stated that the release of deposits was under process. However, interest on the final bill was pending a government decision and budget release.

Key Issues

1. Whether the respondents' action in withholding the EMDs and FSDs, along with GST, and failing to pay interest on works done by the petitioner from the date of submitting the bill to final payment, is illegal, arbitrary, and in violation of constitutional rights and relevant government orders and court precedents? Petitioner's Arguments: The petitioner argued that the non-payment of admitted amounts was arbitrary and high-handed, necessitating court intervention. They relied on G.O.RT No.266 dated 15-02-2021, Memo No 1279341/FMU-WR.I/2020 dated 18-02-2021, and orders passed by the High Court in W.A.No.724 of 2021. Respondents' Arguments: The learned Government Pleader for Irrigation admitted the petitioner's claim and stated that the release of EMD and FSD was under process. The interest payment was pending a government decision and budget release. The respondents did not explicitly contest the petitioner's claim for the return of deposits or the entitlement to interest as per court orders.