Rapaka Udaya Bhaskara Rao vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted contractual dues is arbitrary and requires intervention. Following its own previous orders, including the judgment of a learned Single Judge in W.P.No.10038 of 2021 and batch, the Court directed the respondents to release the admitted amount of Rs. 11,13,184/- to the petitioner. Furthermore, in line with the judgment of the Division Bench of this Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023, the Court directed that interest at the rate of 6% per annum be paid on this amount. The respondents were given a period of six weeks from the date of receipt of the order to make the payment. The Court also clarified that it would be open for the petitioner to pursue a claim for a higher rate of interest in an appropriate forum. No order as to costs was made.
Facts
The petitioner, having been awarded a contract for works in Nellore District, completed the work and submitted a final bill for Rs. 11,13,184/-. Despite the respondents admitting the petitioner's entitlement to this sum, payment has not been made. The petitioner approached the High Court by way of a writ petition, contending that the non-payment is arbitrary and high-handed. The respondents, through the Government Pleader, admitted the claim but stated that payment is contingent upon the allotment of a Letter of Credit (LOC) for the works. The Court was informed of instructions received from the Executive Engineer, Bhimavaram, dated 27.03.2024, regarding the LOC status.
Key Issues
1. Whether the non-payment of the admitted contractual dues of Rs. 11,13,184/- to the petitioner by the respondents is arbitrary and warrants interference by this Court under Article 226 of the Constitution of India? Petitioner's Arguments: The petitioner argued that the respondents admitted the entitlement to the payment but failed to make it, which is arbitrary and high-handed. They 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' Arguments: The learned Government Pleader for Irrigation admitted the petitioner's claim but submitted that payment is dependent on the allotment of a Letter of Credit (LOC) for the works. Instructions from the Executive Engineer, Bhimavaram, dated 27.03.2024, were placed on record to this effect.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.6365 of 2024 ORDER:
The petitioner had been awarded the contract of work(s) under the subject scheme in Nellore District. After execution of the said contract, a final bill was prepared for a sum of Rs.11,13,184/- 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 petitione
The judgment continues below.
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