Dhanumjaya Constructions vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of the admitted sum of Rs.31,57,735/- was arbitrary. Following the directions in various cases, including a Division Bench judgment in Writ Appeal No.724 of 2021 and batch dated 12.10.2023, the Court directed the respondents to release the principal amount of Rs.31,57,735/- to the petitioner. Additionally, the Court directed the payment of interest at the rate of 6% per annum on this amount. The reasoning was based on the established principle that admitted dues should be paid promptly and that delayed payments warrant interest. The Court also clarified that it would be open for the petitioner to pursue their claim for a higher rate of interest and any other due amounts in an appropriate forum. The Court did not expressly leave any issue undecided.
Facts
The petitioner was awarded a contract for various works in West Godavari District, and after execution, a final bill of Rs.31,57,735/- was prepared. The petitioner approached the High Court as the payment was not made. The petitioner contended that the respondents admitted the entitlement to the sum but failed to make the payment, which was arbitrary. The respondents, through the learned Government Pleader, admitted the claim and stated that the final bill was under process in the CFMS (Comprehensive Financial Management System) and would be submitted for payment soon after the release of the Letter of Credit (LOC). The Court considered previous judgments where non-payment of dues was held to be arbitrary.
Key Issues
1. Whether the non-payment of the admitted sum of Rs.31,57,735/- to the petitioner by the respondents is arbitrary and requires the interference of this Court, as per the petitioner's contention? 2. Whether the respondents are liable to pay interest on the delayed payment, and if so, at what rate, considering the petitioner's claim for dues and the respondents' submission that the payment is being processed? Petitioner's arguments: The petitioner argued that the non-payment of the admitted amount was arbitrary and high-handed, necessitating judicial intervention. They relied on previous orders of the High Court, including a Single Judge's order dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held such non-payment as arbitrary and requiring prompt clearance. Respondents' arguments: The learned Government Pleader for Irrigation admitted the petitioner's claim and stated that the final bill was under process in the CFMS. Payment would be processed soon after the release of the LOC. The respondents did not explicitly argue against the payment or the interest, but indicated a procedural delay.
AI-generated summary — verify with the full judgment below
THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION No.37843 of 2022 ORDER:
The petitioner had been awarded the contract of various works under subject scheme in West Godavari District. After execution of the said contract, a final bill was prepared for a sum of Rs.31,57,735/- 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
The judgment continues below.
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