S V V Rambabu vs. The State Of Ap
Held
The Court held that the non-payment of the admitted amount was arbitrary and directed the respondents to release the sum of Rs. 22,56,858/- to the petitioner. The Court also directed the payment of interest at the rate of 6% per annum on this amount, referencing a judgment of the Division Bench of the same High Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. The respondents were given a period of six weeks from the date of receipt of the order to make the payment. The Court also clarified that it would be open for the petitioner to pursue a claim for a higher rate of interest, if applicable, in an appropriate forum. No order as to costs was made. The issue of a higher rate of interest was expressly left open for the petitioner to agitate.
Facts
The petitioner was awarded a contract for works under a scheme in West Godavari District, and a final bill of Rs. 22,56,858/- was prepared. The petitioner approached the High Court as the respondents had not made the payment, despite admitting the petitioner's entitlement. The petitioner argued that the non-payment was arbitrary. The respondents, through the Government Pleader, admitted the claim but stated that payment would be made after the release of Letter of Credit (LOC) for the works. The Court considered previous judgments on arbitrary non-payment of dues.
Key Issues
1. Whether the continued non-payment of the admitted sum of Rs. 22,56,858/- to the petitioner, despite the execution of the contract and finalization of the bill, is arbitrary and warrants interference by this Court under Article 226 of the Constitution of India? Petitioner's arguments: The petitioner contended that the respondents admitted the entitlement to the payment of Rs. 22,56,858/-, and the persistent non-payment was arbitrary and high-handed, necessitating judicial intervention. The petitioner relied on previous orders of the Court, including a judgment dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held that non-payment of dues is arbitrary and should be cleared promptly. Revenue/State's arguments: The learned Government Pleader for Irrigation admitted the petitioner's claim. However, he submitted instructions received from the Executive Engineer, stating that the LOC had not yet been allotted for the works. He assured that once the LOC is released, the bills would be submitted for payment.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.26451 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.22,56,858/- 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
The judgment continues below.
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