M/S. Sreeni Advertising Private LTD. vs. The State Of Andha Pradesh
Held
The Court held that the non-payment of admitted dues was arbitrary and directed the respondents to release the amount of Rs.94,49,790/- to the petitioner. The Court also 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. The respondents were given a period of three months from the date of receipt of the order to make the payment. The petitioner was also granted liberty to agitate their claim for a higher rate of interest and any other due amounts in an appropriate forum. The Court disposed of the writ petition with these directions.
Facts
The petitioner, awarded a contract for various works in NTR District, sought payment of Rs.94,49,790/- for the executed work. The petitioner contended that despite admission of entitlement by the respondents, payment was withheld, which was arbitrary. The respondents, through the learned Government Pleader, admitted the claim but explained that the payment was linked to a Release Order issued to M/s.Sreeni Advertising Private Limited for advertisement services related to a foundation stone laying ceremony. The payment was delayed due to a pending audit para on the work. The respondents stated that payment would be processed after the dropping of the audit para by the Public Accounts Committee. The petitioner approached the High Court by way of a writ petition.
Key Issues
1. Whether the non-payment of the admitted dues of Rs.94,49,790/- to the petitioner by the respondents is arbitrary and requires this Court's interference under Article 226 of the Constitution of India? Petitioner's contention: The petitioner argued that the respondents admitted the entitlement to the sum of Rs.94,49,790/- 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 judgment dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held similar non-payments as arbitrary and requiring clearance. Revenue's contention: The learned Government Pleader for Irrigation, while admitting the petitioner's claim, submitted that the payment was delayed due to a pending audit para. The payment was also linked to a Release Order issued for advertisement services, and the final payment was contingent upon the dropping of the audit para by the Public Accounts Committee. The respondents did not dispute the amount or the petitioner's entitlement but cited procedural delays.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.27880 of 2023 ORDER:
The petitioner had been awarded the contract of various works under subject scheme in NTR District. After execution of the said contract, a final bill was prepared for a sum of Rs.94,49,790/- 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 petition
The judgment continues below.
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