Tammineni Raj Gopal Nayudu vs. The State Of Andhra Pradesh

Held

The High Court allowed the writ petition. The Court directed the respondents to release the total amount of Rs. 1,92,335/- to the petitioner within a period of two months from the date of receipt of a copy of the order. The Court noted that the respondents admitted the petitioner's claim and indicated that payment would be made upon budget release. The Court's decision was based on the admitted claim and the assurance of payment. The petitioner was also granted liberty 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. Any pending miscellaneous petitions were also closed.

Facts

The petitioner, Tammineni Raj Gopal Nayudu, filed a writ petition seeking a mandamus to direct the respondents, the State of Andhra Pradesh and its officials from the Irrigation and Finance Departments, to release withheld amounts. Specifically, the petitioner sought the release of 2.5% of Earnest Money Deposit (EMD) amounting to Rs. 21,856/-, 7.5% of a withheld amount totaling Rs. 65,569/-, and GST amounts of Rs. 1,04,910/-. These amounts pertained to a work titled “Desilting and strengthening of bund to Kammamma kunta near P.R.Palli(v), Peapully (M) Kurnool District”. The total amount claimed by the petitioner was Rs. 1,92,335/-. The petitioner contended that the respondents admitted the entitlement to the amount but failed to make the payment, which was considered arbitrary and high-handed.

Key Issues

1. Whether the respondents' failure to release the admitted withheld amounts, including EMD, a further withheld sum, and GST, to the petitioner is arbitrary and warrants interference by this Court under Article 226 of the Constitution of India? The petitioner argued that the respondents had admitted the petitioner's entitlement to the total sum of Rs. 1,92,335/- but had failed to release it, constituting arbitrary and high-handed action. The petitioner sought immediate release of these funds. The respondents, through the learned Government Pleader for Irrigation, admitted the petitioner's claim. They submitted instructions from the Executive Engineer, Kurnool, stating that the budget had not yet been released by the government. They assured the court that upon receipt of the budget, payments towards the withheld amounts and EMD would be made to the petitioner through the CFMS (Comprehensive Financial Management System).