S.V.V. Rambabu vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted contract dues by the respondents was arbitrary. Following its own previous directions in similar cases and considering the submissions of both parties, the Court directed the respondents to release the admitted amount of Rs.46,78,752/- to the petitioner. Additionally, the Court directed the payment of interest at the rate of 6% per annum, referencing a Division Bench judgment in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. This payment was to be made within six weeks from the date of receipt of the order. 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 elsewhere.
Facts
The petitioner, who had executed contract works in West Godavari District, approached the High Court via a writ petition as the respondents had not paid the final bill amount of Rs.46,78,752/-. The petitioner contended that the non-payment was arbitrary, despite the respondents admitting the 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 upon budget release. The Court considered previous judgments on similar matters where non-payment was deemed arbitrary.
Key Issues
1. Whether the non-payment of the admitted contract dues by the respondents to the petitioner is arbitrary and warrants interference by this Court under Article 226 of the Constitution of India? Petitioner's arguments: The petitioner argued that the respondents admitted the entitlement to the sum of Rs.46,78,752/- but failed to make the payment, which constitutes arbitrary and high-handed action, necessitating judicial intervention. The petitioner 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. However, he submitted that the delay in payment was solely due to the non-release of the budget by the Government. He assured that the bills would be paid soon after the release of the budget or Letter of Credit (LOC).
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.26504 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.46,78,752/- 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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