Vungarala Lakshmi Narasimha Rao vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted contractual dues by the respondents was arbitrary and required intervention. Following its own previous orders, including a learned Single Judge's judgment dated 05.10.2021 in W.P.No.10038 of 2021 and batch, the Court found that such non-payment constitutes arbitrary action. The Court also considered the respondents' submission that payment was pending LOC release but directed immediate action. The Court directed the respondents to release the admitted amount of Rs.12,05,665/- to the petitioner. Additionally, the Court directed the payment of interest at the rate of 6% per annum, referencing a Division Bench judgment in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. The petitioner was also granted liberty to pursue a claim for a higher rate of interest in an appropriate forum. The respondents were given six weeks from the receipt of the order to comply.
Facts
The petitioner was awarded a contract for works in West Godavari District and completed the work, submitting a final bill for Rs.12,05,665/-. The respondents, who are the revenue/State authorities, failed to make the payment despite admitting the petitioner's entitlement. The petitioner approached the High Court by way of a writ petition, 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 upon the release of a Letter of Credit (LOC) for the works. The Court considered previous judgments on similar matters.
Key Issues
1. Whether the non-payment of the admitted contractual dues by the respondents is arbitrary and warrants interference by this Court under Article 226 of the Constitution of India? Petitioner's contentions: The petitioner argued that the respondents admitted the entitlement to the payment of Rs.12,05,665/- but had failed to make the payment. This inaction was considered arbitrary and high-handed, necessitating the Court's intervention. The petitioner relied on previous orders of the 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 requires prompt clearance. Respondents' contentions: The learned Government Pleader for Irrigation, while admitting the petitioner's claim, submitted instructions received from the Executive Engineer. The respondents stated that an LOC had not yet been allotted for the works, and payment would be processed after the LOC was released. They did not dispute the petitioner's entitlement to the amount.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.1344 of 2024 ORDER:
The petitioner had been awarded the contract of work(s) under the subject scheme in West Godavari District. After execution of the said contract, a final bill was prepared for a sum of Rs.12,05,665/- 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 pet
The judgment continues below.
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