Tammineedi Ramakrishna Vara Prasad vs. The State Of Andhra Pradesh

WP/3435/2022HC Andhra PradeshGSTCNR APHC01005278202201 February 2024Bench: VENKATESWARLU NIMMAGADDA3 pages
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Held

The Court held that the action of the respondents in withholding the bill amount of Rs. 5,92,287/- to the petitioner was unjustified and lacked any reason. The Court found the petitioner's case to be 'pitiable' as the works were successfully completed, yet the payment was not released, and the interim order of the Court was not complied with. The Court reasoned that public authorities have a responsibility to fulfill contractual obligations promptly. Therefore, the Court directed the respondent authorities to pay the bill amount of Rs. 5,92,287/- to the petitioner along with interest at 6% per annum. This direction was based on the judgment of the Division Bench of the Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. The payment was to be made within six weeks from the receipt of the order. The Court also noted that it would be open for the petitioner to agitate claims for differential amounts or higher interest in an appropriate forum.

Facts

The petitioner, a contractor, seeks a writ of mandamus to compel the respondent authorities to release a payment of Rs. 5,92,287/- for repair works completed in West Godavari District. The petitioner asserts that the works were successfully completed, and the payment has been withheld despite the completion of the default liability period. The petitioner claims the withholding of payment is illegal, arbitrary, and violative of natural justice. An interim order was previously passed on 09.02.2022 directing the respondents to pay the due amount after verification, but this order was not complied with. No counter-affidavit was filed by the respondents.

Key Issues

1. Whether the action of the respondents in withholding the payment of Rs. 5,92,287/- to the petitioner for completed works is illegal, arbitrary, and violative of the principles of natural justice, turning on Article 226 of the Constitution of India. Petitioner's Arguments: The petitioner argued that the works were completed to the satisfaction of the authorities and the payment has been unjustly withheld without any valid reason. They contended that the respondents have failed to comply with the interim order of this Court dated 09.02.2022, which directed the release of the payment. The petitioner sought a direction for payment of the bill amount along with interest. Respondents' Arguments: The judgment records no arguments from the respondents.

AI-generated summary — verify with the full judgment below

1 THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

WRIT PETITION No.3435 Of 2022

ORDER:-

1.

The petitioner seeks writ of mandamus to declare the action of the respondents in not releasing the payment of the petitioner to a tune of sum of Rs.5,92,287/- towards payment of work, as illegal, arbitrary and violative of principles of natural justice and for a consequential direction.

2.

The petitioner’s case is that, the petitioner has undertaken certain repair works in West Godavari District and successfully completed those works. The net amount payable to the petitioner was concluded at Rs.5,92,287/-. On completion of the agreed works, the respondent authorities did not pay the amount till date. Though the works were completed long back and the default liability period of two years was also completed, still, the respondent authorities have not returned the amount. Hence, the writ petition is preferred seeking a direction to the respondents to pay the amount with interest.

3.

Heard. No counter is filed by the respondents.

4.

As can be seen, the petitioner’s case is a pitiable one. Th

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