Gadda Veera Raghavulu vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of the admitted contractual dues was arbitrary and required intervention. 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 principal amount of Rs. 53,72,771/- to the petitioners. Additionally, the Court directed the payment of interest at the rate of 6% per annum on this amount. The petitioners were also granted the liberty to pursue their claim for a higher rate of interest, if any, in an appropriate forum. The Court disposed of the writ petition with these directions, to be complied with within six weeks from the date of receipt of the order. No order as to costs was made.
Facts
The petitioners were awarded a contract for work in West Godavari District and completed it, preparing a final bill for Rs. 53,72,771/-. The respondents have not made this payment. The petitioners contend that despite the respondents admitting their entitlement to the sum, payment has not been made, which they argue is arbitrary and high-handed. The petitioners approached the High Court by way of a writ petition seeking payment. The respondents, through the learned Government Pleader, admitted the claim but stated that payment could not be made due to a lack of Letter of Credit (LOC), assuring that payment would be made upon its release.
Key Issues
1. Whether the non-payment of the admitted contractual dues of Rs. 53,72,771/- by the respondents to the petitioners is arbitrary and requires the interference of this Court under Article 226 of the Constitution of India? Petitioner's Arguments: The petitioners argued that the non-payment of the admitted sum is 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 Arguments: The learned Government Pleader for Irrigation admitted the petitioner's claim but explained that payment was delayed due to a lack of Letter of Credit (LOC). They assured that payment would be processed soon after the release of the LOC.
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HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.8242 of 2023 ORDER:
The petitioners had been awarded the contract of work(s) under the subject scheme in West Godavari District. After execution of the said contract, a final bill was prepared for a sum of Rs.53,72,771/- as per the sanctioned orders. As the payment of the said amount has not been made by the respondents, the petitioners have approached this Court by way of this writ petition.
It is the contention of the petitioners that even though the respondents admitted that the petitioners are entitled for payment of the aforesaid sum of money, no payment is being made. The petitioners 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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