Repalle Indira Devi vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted dues by the respondents was arbitrary and required intervention. Following its previous orders, including a Single Judge's judgment dated 05.10.2021 in W.P.No.10038 of 2021 and batch, the Court directed the respondents to release the admitted amounts to the petitioner. Furthermore, in view of a Division Bench judgment in Writ Appeal No.724 of 2021 and batch dated 12.10.2023, the Court directed the respondents to pay interest at the rate of 6% per annum on the released amounts. The respondents were given a period of six weeks from the date of receiving the order to comply. The Court also noted that it would be open for the petitioner to agitate claims for a higher rate of interest or any other due amounts in an appropriate forum. The ratio decidendi is that arbitrary non-payment of admitted contractual dues by government authorities is unsustainable and warrants payment with interest as per established judicial precedent.
Facts
The petitioner, awarded contracts for various works in Guntur District, approached the High Court by way of a writ petition due to non-payment of final bills. The petitioner claimed entitlement to Rs.4,50,000/-, Rs.3,81,891/-, and Rs.5,51,133/-. The respondents, through the learned Government Pleader for Irrigation, admitted the petitioner's claim but provided details of the works executed, including the value of work done and the GST component. The respondent's counter detailed three specific works awarded to the petitioner with corresponding agreement numbers, dates, and contract values, outlining the work done and the GST amounts calculated for each. The petitioner contended that the non-payment was arbitrary and high-handed.
Key Issues
1. Whether the non-payment of admitted dues 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 the admitted amounts along with interest, considering previous judgments of this Court, as directed in the disposal order? Petitioner's Arguments: The petitioner argued that despite the respondents admitting the entitlement to the claimed sums, no payment was being made, which was arbitrary and high-handed, necessitating court intervention. The petitioner relied on various orders of the Court, including a Single Judge's judgment dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held similar non-payments as arbitrary and requiring clearance. Respondents' Arguments: The learned Government Pleader for Irrigation admitted the petitioner's claim and provided a detailed counter outlining the specific works awarded, the contract values, the value of work done, and the GST component for each work. The respondents did not explicitly argue against the payment of dues but provided factual details of the contracts and work executed.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.28936 of 2022 ORDER:
The petitioner had been awarded the contract of various works under subject scheme in Guntur District. After execution of the said contract, a final bill was prepared for amounts of Rs.4,50,000/-, Rs.3,81,891/- and Rs.5,51,133/- 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.
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On the other hand, learned Government Pleader for Irrigati
The judgment continues below.
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