Nallamalapu Sudhakar Reddy vs. The State Of Andhra Pradesh

Held

The Court held that the respondents were directed to release the amount of Rs. 6,85,343.24 to the petitioner. Additionally, the petitioner was to be paid interest at 6% per annum. This decision was based on the Court's previous directions in various cases and a judgment of the Division Bench in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. The payment, including interest, was to be made within two months from the receipt of the order. The Court also noted that it would be open for the petitioner to pursue a claim for a higher rate of interest in an appropriate forum. The issue of GST evasion, as prima facie found in the report, was not expressly decided or made a condition for payment in this order.

Facts

The petitioner, Nallamalapu Sudhakar Reddy, was awarded a contract under a scheme in Prakasam District. Upon execution, a final bill for Rs. 6,85,343.24 was prepared. The petitioner approached the High Court as the respondents failed to make the payment. The petitioner contended that the respondents admitted the entitlement to the payment but were arbitrarily withholding it. The respondents, through the 2nd respondent, stated they were awaiting government instructions. A report dated 13.10.2022 prima facie found the petitioner had evaded GST payment, causing loss to the public exchequer.

Key Issues

1. Whether the non-payment of the final bill amount of Rs. 6,85,343.24 to the petitioner is arbitrary and high-handed, requiring the High Court's intervention under its writ jurisdiction? Petitioner's arguments: The petitioner argued that despite the respondents admitting the entitlement to the payment, the non-payment was arbitrary and high-handed, necessitating judicial interference. The petitioner relied on previous orders of the High Court, including a Single Judge's judgment in W.P.No.10038 of 2021 and batch, which held such non-payment as arbitrary and requiring prompt clearance. Respondent's arguments: The respondents, represented by the learned Government Pleader, stated that they were awaiting instructions from the Government to settle the bills. A report dated 13.10.2022 indicated a prima facie finding against the petitioner for evading GST, which is a statutory requirement and causes loss to the public exchequer.