S V V Rambabu vs. The State Of Ap
Held
The Court held that the non-payment of the admitted amount of Rs. 32,00,735/- to the petitioner was arbitrary. Citing previous directions of the Court in various cases, including a judgment of a learned Single Judge dated 05.10.2021 in W.P.No.10038 of 2021 and batch, the Court found that such dues needed to be cleared promptly. Furthermore, considering a judgment of the Division Bench of this Court 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. 32,00,735/- along with interest at 6% per annum. The respondents were given a period of six weeks from the date of receipt of the order to make the payment. The petitioner was also informed that it would be open to agitate their claim for a higher rate of interest, if any payable, in an appropriate forum. No order as to costs was made.
Facts
The petitioner was awarded a contract for work in West Godavari District and completed it, submitting a final bill for Rs. 32,00,735/-. The respondents have not made the payment despite admitting the petitioner's entitlement. The petitioner approached the High Court by way of a writ petition, contending that the non-payment is arbitrary. The respondents, through the Executive Engineer, Nidadavole, stated that payment could not be made due to a lack of LOC (Letter of Credit) but assured payment upon its release. The Court considered previous judgments regarding arbitrary non-payment of dues.
Key Issues
1. Whether the non-payment of the admitted amount of Rs. 32,00,735/- to the petitioner for the executed work is arbitrary and warrants the interference of this Court under Article 226 of the Constitution of India? Petitioner's contentions: The petitioner argued that the respondents admitted the entitlement to the sum of Rs. 32,00,735/- but failed to make the payment, which is arbitrary and high-handed, necessitating judicial intervention. The petitioner relied on this Court's previous orders, including a judgment dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held non-payment of dues as arbitrary. Revenue/State's contentions: The learned Government Pleader for Irrigation, admitting the petitioner's claim, placed on record instructions stating that payment was delayed due to a lack of LOC. The Government Pleader assured that payments would be made soon after the release of the LOC.
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HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.26434 of 2023 ORDER:
The petitioner 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.32,00,735/- 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
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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 judgment continues below.
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