M/S Tejha Power Controls PVT LTD vs. The State Of Andhra Pradesh

Held

The Court held that the non-payment of the pending bills to the petitioner was not justifiable, given the undisputed position regarding the petitioner's entitlement to the amounts for the works completed. The Court found the respondents' reasons for delay, as stated in the counter affidavit, insufficient to justify the prolonged non-payment. Therefore, the Court directed the respondents to arrange for the payment of the outstanding amount of Rs. 2,00,39,561/-, after effecting statutory deductions if any, as expeditiously as possible, preferably within four months from the date of receiving the order. The Court also noted that the petitioner was at liberty to raise a claim for the interest component before the appropriate forum if they were so advised. The issue of interest was expressly left undecided by the Court.

Facts

M/s Tejha Power Controls Pvt Ltd (the petitioner) filed a writ petition seeking release of pending bills totaling Rs. 2,00,39,561/- with interest, for supplying Transformer Sets to various Government Hospitals in Andhra Pradesh under Agreement No. 05/APMSIDC/2021-22 dated 05.10.2021. The petitioner submitted bills after completing the work, but the respondent authorities failed to release payment, despite Clauses 68 and 69 of the A.P. Standard Specifications obligating payment within six months of work completion. The respondents, in their counter affidavit, acknowledged the petitioner's work completion and the pending final bill amount of Rs. 2,00,39,561/-. They stated that an amount of Rs. 4,19,16,303/- had already been released and the final bill was pending clearance since 2022. The respondents attributed the delay to certain defects pointed out by field officers that the petitioner allegedly delayed rectifying, and clarified that the APMSIDC is an executing agency for various Heads of Departments.

Key Issues

1. Whether the action of the respondents in not releasing the pending bills worth Rs. 2,00,39,561/- with interest, due to the petitioner in respect of providing Transformer Sets, is illegal and arbitrary? Petitioner's Contention: The petitioner argued that they had completed the works as per the agreement and submitted bills, but the respondent authorities failed to release payments totaling Rs. 2,00,39,561/-. They emphasized that as per Clauses 68 and 69 of the A.P. Standard Specifications, payment should be made within six months of work completion, and the delay has caused them hardship and irreparable loss. Respondent's Contention: The respondents, through their counter affidavit, admitted the petitioner's work completion and the pending final bill amount. They stated that an amount of Rs. 4,19,16,303/- had been released and the final bill was pending since 2022. They attributed the delay to defects pointed out by field officers that the petitioner allegedly delayed rectifying, and clarified that the APMSIDC is an executing agency and not directly responsible for the delay in payment processing, which involves various Heads of Departments.