Nadimpalli Venkata Raju vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted dues by the respondents was arbitrary and required immediate action. Citing previous judgments of the Court, 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 admitted amount of Rs. 19,44,425/- to the petitioner. Additionally, the Court ordered the payment of interest at the rate of 6% per annum on this amount. The respondents were directed to comply with this order within six weeks of receiving a copy of the judgment. The petitioner was also granted liberty to pursue claims for higher interest or any other due amounts in an appropriate forum. The Court explicitly left undecided the petitioner's claim for a higher rate of interest, allowing them to agitate it separately.
Facts
The petitioner, awarded a contract for various works under a scheme in West Godavari District, approached the High Court as the final bill of Rs. 19,44,425/- for executed work remained unpaid. The petitioner contended that despite the respondents admitting entitlement to the payment, no action was taken, deeming it arbitrary. The respondents, through the Government Pleader, admitted the claim and stated that the final bill was under process in CFMS, awaiting release of LOC for payment processing. The Court considered previous judgments on similar non-payment issues.
Key Issues
1. Whether the non-payment of the admitted contractual dues of Rs. 19,44,425/- 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' failure to make the admitted payment despite acknowledging the petitioner's entitlement was arbitrary and high-handed, necessitating judicial intervention. They relied on previous orders of the 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. Revenue/State's contention: The learned Government Pleader for Irrigation, while admitting the petitioner's claim, submitted that the final bill was under process in the CFMS. Payment would be processed and submitted for payment soon after the release of the Letter of Credit (LOC).
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION No.37528 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.19,44,425/- 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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