S V V Rambabu vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted dues by the respondents was arbitrary, aligning with previous judgments of the High Court. The Court directed the respondents to release the admitted amount of Rs.45,07,131/- to the petitioner. Furthermore, the Court directed that interest at the rate of 6% per annum be paid on this amount, referencing a Division Bench judgment in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. The Court also noted that it would be open for the petitioner to pursue a claim for a higher rate of interest, if payable, in an appropriate forum. The respondents were given a period of six weeks from the date of receipt of the order to make the payment. No order as to costs was made.
Facts
The petitioner, who had been awarded contract works in West Godavari District, approached the High Court via a writ petition seeking payment of Rs.45,07,131/- for executed contract works. The petitioner contended that despite the respondents admitting the entitlement to the sum, payment had not been made, which was considered arbitrary. The respondents, represented by the 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.
Key Issues
1. Whether the non-payment of admitted dues by the respondents to the petitioner for executed contract works is arbitrary and requires the interference of this Court, particularly in light of previous High Court judgments on similar matters? 2. What is the appropriate rate of interest, if any, payable on the delayed payment of the admitted dues? Petitioner's Contention: The petitioner argued that the non-payment of the admitted sum of Rs.45,07,131/- was arbitrary and high-handed, necessitating court 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 such non-payment as arbitrary. Revenue's Contention: The learned Government Pleader for Irrigation admitted the petitioner's claim but explained that payment was contingent on the release of budget/LOC by the Government. They stated that bills would be paid soon after the budget release. No specific argument was made against the petitioner's claim for payment, only a reason for the delay.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.12506 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.45,07,131/- 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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