M/S. Udayam Constructions vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted dues by the respondents to the petitioner was arbitrary. Following its own previous directions and the submissions of both parties, the Court disposed of the writ petition. The respondents were directed to release the admitted amount of Rs. 32,63,505/- to the petitioner. Additionally, the Court directed the payment of interest at the rate of 6% per annum, referencing a judgment of the Division Bench of the High Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. This payment was to be made within six weeks from the receipt of the order. The Court also noted that it would be open for the petitioner to pursue claims for a higher rate of interest or any other due amounts in an appropriate forum. No order was made as to costs.
Facts
M/s. Udayam Constructions (the petitioner) was awarded a contract for works in Krishna District. After executing the contract, the petitioner prepared final bills amounting to Rs. 42,88,121/-. The respondents have not made the payment. The petitioner approached the High Court, contending that despite the respondents admitting an amount of Rs. 32,63,505/- as payable, no payment has been made, which is arbitrary. The respondents, through written instructions from the Executive Engineer, Bhimavaram, admitted the amount of Rs. 32,63,505/- as payable and stated that bills would be cleared soon after the release of the Letter of Credit (LOC).
Key Issues
1. Whether the non-payment of admitted dues by the respondents to the petitioner is arbitrary and requires the interference of this Court? (Question of law and fact) Petitioner's Contentions: The petitioner argued that the non-payment of the admitted amount of Rs. 32,63,505/- is arbitrary and high-handed, necessitating judicial intervention. They relied on various orders of the Court, including a Single Judge's order dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held such non-payment as arbitrary and requiring prompt clearance. Respondent's Contentions: The learned Government Pleader for Irrigation placed on record written instructions admitting the amount of Rs. 32,63,505/- as payable to the petitioner and stated that payments would be made soon after the release of the LOC.
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Cause title — parties, addresses and appearances
ORDER:
The petitioner had been awarded the contract of work(s) under the subject scheme in Krishna District. After execution of the said contract, final bills were prepared for a sum of Rs.42,88,121/- 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 Rs.32,63,505/-, no payment is being made. The petitioner contends that such non-payment of money is
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