Swathi Engineering Company vs. The State Of Ap
Held
The Court held that the non-payment of the admitted dues was arbitrary, aligning with its previous pronouncements. The Court directed the respondents to release the principal amount of Rs. 9,24,591/- to the petitioner. Furthermore, the Court directed the respondents to pay interest at the rate of 6% per annum on this amount. 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 from the date of receipt of the order. The Court also clarified that it would be open for the petitioner to pursue a claim for a higher rate of interest, if any, in an appropriate forum. No order as to costs was made.
Facts
The petitioner was awarded a contract for works in NTR District and completed the work, resulting in a final bill of Rs. 9,24,591/-. The respondents have not made the payment despite admitting the petitioner's entitlement. The petitioner filed a writ petition seeking payment, contending the non-payment was arbitrary. The respondents, through the Government Pleader for Irrigation, admitted the claim but stated that budget had not been released for the works. Instructions were placed on record from the Executive Engineer, Vijayawada, dated 07.03.2024, indicating that payment would be made after budget release.
Key Issues
1. Whether the non-payment of the admitted amount of Rs. 9,24,591/- to the petitioner by the respondents is arbitrary and requires this Court's interference 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, necessitating judicial intervention. 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 non-payment of dues as arbitrary. Respondents' arguments: The learned Government Pleader for Irrigation admitted the claim but stated that payment could not be made as the budget for the works had not been released. They submitted instructions received from the Executive Engineer, Vijayawada, dated 07.03.2024, indicating that bills would be submitted to the petitioner after budget release.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.3517 of 2023 ORDER:
The petitioner had been awarded the contract of work(s) under the subject scheme in NTR District. After execution of the said contract, a final bill was prepared for a sum of Rs.9,24,591/- 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 petitioner pla
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