M/S Ideal Survey vs. The State Of Andhra Pradesh
Held
The Court directed the respondents to clear the bill amount of Rs. 15,00,000/- to the petitioner. Additionally, the Court ordered that the payment should include interest at the rate of 6% per annum. This direction for interest was based on a judgment of the Division Bench of the High Court in Writ Appeal No. 724 of 2021 and batch, dated October 12, 2023. The payment, including interest, was to be made within six weeks from the receipt of the order. The Court stipulated that if the payment was not made within this period, the bill amounts would carry a higher interest rate of 12% per annum until actual payment. The Writ Petition was disposed of with these directions, without delving into the merits of the maintainability of the writ petition. No order as to costs was made.
Facts
The petitioner, M/s Ideal Survey, filed a writ petition seeking a mandamus to declare the action of the respondents in withholding payment for executed works under a scheme as illegal and arbitrary. The petitioner had completed the works, and bills were prepared, but payment was not made for various reasons. During the hearing, the Government Pleader for Irrigation submitted instructions from the Executive Engineer, Kurnool, dated March 20, 2024, indicating that the balance payment of Rs. 15,00,000/- would be made soon after the submission of the Detailed Project Report (DPR) to the Executive Engineer, Major Irrigation, Kurnool.
Key Issues
1. Whether the action of the respondents in withholding the payment of the bill amount to the petitioner is illegal, arbitrary, and contrary to the principles of natural justice, as contemplated under Article 226 of the Constitution of India? Petitioner's contention: The petitioner argued that they had executed the works satisfactorily, bills were prepared, and withholding payment without valid reasons was illegal and arbitrary. They sought a writ of mandamus to compel payment. Respondents' contention: The respondents, through the Government Pleader, indicated that the balance payment was contingent on the submission of the DPR and assured that payment would be made. No specific legal arguments were presented against the petitioner's claim for payment, but rather an explanation for the delay and a commitment to resolve it.
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Cause title — parties, addresses and appearances
ORDER
This writ petition under Article 226 of Constitution of India is filed to issue writ of mandamus, declaring the action of respondents in withholding payment of bill, payable to the petitioner in relation to the execution of work(s) under the subject scheme, as illegal, arbitrary and contrary to the principles of natural justice.
It is the case of the petitioner that the petitioner has executed the work(s) under the subject scheme, the respondents having been satisfied with the execution of works, prepared the bills, but the amount was not paid, for different reasons.
During hearing, learned Government Plead
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