S V V Rambabu vs. The State Of Ap
Held
The Court held that the non-payment of admitted dues by the respondents was arbitrary and required intervention. Following its own previous orders and 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 admitted amount of Rs.47,57,943/- to the petitioner. Additionally, the Court directed the payment of interest at the rate of 6% per annum. 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. The writ petition was disposed of with these directions, and there was no order as to costs. The Court did not expressly leave any issue undecided, as the primary issue of payment was addressed.
Facts
The petitioner, who was awarded contract works in West Godavari District, approached the High Court by way of a writ petition seeking payment of Rs.47,57,943/- for executed works, as the final bill had been prepared but payment was not made by the respondents. The petitioner contended that the non-payment was arbitrary and high-handed, despite the respondents admitting entitlement to the sum. The respondents, through the learned Government Pleader, admitted the claim but stated that payment was delayed due to the non-release of budget/LOC by the Government. They assured that payment would be made soon after budget release.
Key Issues
1. Whether the non-payment of admitted dues by the respondents to the petitioner, despite the execution of contract works and preparation of a final bill, is arbitrary and warrants interference by this Court under Article 226 of the Constitution of India? Petitioner's contention: The petitioner argued that the non-payment of the admitted sum of Rs.47,57,943/- is arbitrary and high-handed, necessitating the Court's intervention. They relied on previous orders of the Court, including a learned 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 prompt clearance. Revenue's contention: The learned Government Pleader for Irrigation, while admitting the petitioner's claim, submitted that the delay in payment was solely due to the non-release of the budget by the Government. They assured that payments would be processed upon the release of the budget/LOC.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.12483 of 2023 ORDER:
The petitioner had been awarded various contract works in West Godavari District. After execution of the said contract, a final bill was prepared for a sum of Rs.47,57,943/- 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.
On the other hand, learned Government Pleader for Irrigation while admitting about the claim of the petitioner placed on record in
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