S V V Rambabu vs. The State Of Ap
Held
The Court held that the non-payment of admitted contract dues was arbitrary and required intervention. Following its previous orders and the 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.45,14,920/- to the petitioner. Additionally, the Court ordered the payment of interest at the rate of 6% per annum on this amount. The petitioner was also granted liberty to pursue a claim for a higher rate of interest, if applicable, in an appropriate forum. The operative direction was for the respondents to make the payment within six weeks from the date of receiving a copy of the order. No costs were awarded. 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 by way of a writ petition seeking payment of Rs.45,14,920/- for a final bill prepared after the execution of the works. The petitioner contended that despite admission of entitlement to the sum by the respondents, payment was not being made, which was arbitrary. The respondents, through the learned Government Pleader, admitted the claim but stated that payment was delayed due to non-release of budget/LOC by the Government. They assured that payment would be made soon after budget release. The Court considered previous judgments on similar non-payment issues.
Key Issues
1. Whether the non-payment of the admitted contract dues of Rs.45,14,920/- by the respondents to the petitioner is arbitrary and requires the interference of this Court, particularly in light of the petitioner's entitlement to the sum? (Question of law and fact, concerning principles of administrative law and contract enforcement). Contentions: Petitioner: Argued that the non-payment of admitted dues is arbitrary and high-handed, necessitating judicial intervention. Relied on this Court's previous orders, 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 and requiring prompt clearance. Respondents: Admitted the petitioner's claim and the amount due. Explained that payment was contingent on the release of budget/LOC by the Government and assured payment would be made upon such release. Relied on instructions received from the Executive Engineer, Godavari Western Division, Nidadavolu, East Godavari District, dated 25.09.2023.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.12682 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.45,14,920/- 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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