K V A Narasimha Ranga Raju vs. The State Of Ap

WP/3886/2023HC Andhra PradeshGSTCNR APHC01007803202321 March 2024Bench: VENKATESWARLU NIMMAGADDA5 pages

For Petitioner: K L N SWAMYFor Respondent: GP FOR IRRIGATION COMM AREA DEV, GP FOR FINANCE PLANNING

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Held

The Court held that the non-payment of admitted contractual dues was arbitrary and required the respondents to release the payment. The Court directed the respondents to release the amount of Rs. 20,87,165/- to the petitioner along with interest at 6% per annum. This direction was based on the judgment of the Division Bench of the High Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. The payment was to be made within six weeks of receiving a copy of the order, subject to the petitioner providing GST particulars. The Court also noted that it would be open for the petitioner to pursue a claim for a higher rate of interest in an appropriate forum. The issue of whether a higher rate of interest was payable was expressly left undecided by this Court.

Facts

The petitioner, K V A Narasimha Ranga Raju, was awarded a contract for works under a scheme in Kurnool District. Upon execution, a final bill of Rs. 20,87,165/- was prepared. The petitioner approached the High Court as the respondents had not made the payment. The petitioner contended that the respondents admitted the entitlement to the sum but failed to pay, which was arbitrary. The respondents, through the Government Pleader for Irrigation, admitted the claim and stated that payment would be processed soon after the release of the Letter of Credit (LOC).

Key Issues

1. Whether the non-payment of the admitted contractual dues of Rs. 20,87,165/- by the respondents to the petitioner is arbitrary and warrants interference by this Court under Article 226 of the Constitution of India? Petitioner's contention: The petitioner argued that the respondents admitted the petitioner's entitlement to the sum of Rs. 20,87,165/- but failed to make the payment, which constitutes arbitrary and high-handed action requiring judicial intervention. The petitioner relied on previous judgments of the High Court, including a Single Judge's order in W.P.No.10038 of 2021 and batch, which held such non-payment as arbitrary and requiring prompt clearance. Respondent's contention: The Government Pleader for Irrigation, while admitting the petitioner's claim, submitted instructions indicating that payment would be processed soon after the release of the LOC. No specific legal provisions or precedents were cited by the respondents in their defense.

Sections Cited

None explicitly mentioned as being discussed or forming the basis of the decision, beyond general contractual and constitutional principles.

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Cause title — parties, addresses and appearances

APHC010078032023 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3329] FRIDAY ,THE TWENTY SECOND DAY OF MARCH TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 3886/2023 Between: K V A Narasimha Ranga Raju ...PETITIONER AND The State Of Ap and Others ...RESPONDENT(S) Counsel for the Petitioner: 1. K L N SWAMY Counsel for the Respondent(S): 1. GP FOR IRRIGATION COMM AREA DEV 2. GP FOR FINANCE PLANNING The Court made the following:

ORDER:

The petitioner had been awarded the contract of work(s) under the subject scheme in Kurnool District. After execution of the said contract, a final bill was prepared for a sum of Rs.20,87,165/- 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

The judgment continues below.

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Reproduced from the public record of the Andhra Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.