K V Ramana Reddy vs. The State Of Ap
Held
The Court held that the non-payment of the admitted contractual dues was arbitrary and directed the respondents to release the amount of Rs. 9,00,312/- to the petitioner. The Court further directed that interest at the rate of 6% per annum be paid on this amount, referencing a judgment of the Division Bench of the High Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. The payment, including interest, was to be made within six weeks from the receipt of the order. The Court also clarified that it would be open for the petitioner to pursue a claim for a higher rate of interest, if applicable, in an appropriate forum. The Court did not expressly leave any issue undecided, but the petitioner's right to claim higher interest was deferred to another forum.
Facts
The petitioner, awarded a contract for works in Krishna District, sought payment of Rs. 9,00,312/- for the executed work. Despite the respondents admitting the petitioner's entitlement to this sum, payment had not been made. The petitioner approached the High Court, contending that the non-payment was arbitrary and high-handed. The respondents, through the learned Government Pleader, admitted the claim but stated that payment was contingent on the release of BRO (Budgetary Release Order), after which bills would be submitted for payment. The Executive Engineer, Vijayawada, provided instructions to this effect on 25.04.2024.
Key Issues
1. Whether the non-payment of the admitted contractual dues of Rs. 9,00,312/- to the petitioner is arbitrary and requires the High Court's interference under its writ jurisdiction, as per Article 226 of the Constitution of India? Petitioner's Contention: The petitioner argued that the respondents admitted the entitlement to the sum of Rs. 9,00,312/- but failed to make the payment, which was arbitrary and high-handed, necessitating judicial intervention. The petitioner relied on previous orders of the High Court, including a learned Single Judge's order dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held that non-payment of dues is arbitrary and should be cleared promptly. Revenue/State's Contention: The learned Government Pleader for Irrigation admitted the petitioner's claim but submitted instructions indicating that payment was pending the release of BRO for the works. Once BRO is released, the bills would be submitted for payment.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.7993 of 2024 ORDER:
The petitioner had been awarded the contract of work(s) under the subject scheme in Krishna District. After execution of the said contract, a final bill was prepared for a sum of Rs.9,00,312/- as per the sanctioned orders. As the payment of the said amount has not been made by the respondents, the petitioner has approached this Court by way of this writ petition.
It is the contention of the petitioner that even though the respondents admitted that the petitioner is entitled for payment of the aforesaid sum of money, no payment is being made. The petitioner contends that such non-payment of money is clearly arbitrary and high- handed requiring the interference of this Court.
This Court, in various orders, including the judgment of a learned Single Judge of this Court dated 05.10.2021 in W.P.No.10038 of 2021 and batch had taken the view that such non-payment of dues is arbitrary and that such dues need to be cleared by the respondents at the earliest.
On the other hand, learned Government Pleader for Irrigation while admitting about the claim of the petitioner
The judgment continues below.
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