Vaddiboina Chenchu Reddy vs. The State Of Andhra Pradesh

Held

The Court held that the non-payment of admitted dues to the petitioner was arbitrary. Following its own previous orders, including a learned Single Judge's judgment in W.P.No.10038 of 2021 and batch, the Court directed the respondents to release the admitted amount of Rs.3,28,869/- (including GST of Rs.16,372/-) to the petitioner. Furthermore, in line with a Division Bench judgment in Writ Appeal No.724 of 2021 and batch dated 12.10.2023, the Court also directed that interest at the rate of 6% per annum be paid on this amount. The respondents were given a period of ten (10) weeks from the receipt of the order to make the payment. The Court also noted that it would be open for the petitioner to pursue claims for higher interest or any other due amounts in an appropriate forum. The issue of higher interest was expressly left open for the petitioner to agitate elsewhere.

Facts

The petitioner was awarded a contract for works under the ‘Neeru Chettu’ scheme in Nellore District. After executing the contract, a final bill of Rs.3,51,547/- was prepared, including GST, CESS, and FSD. The petitioner approached the High Court as the respondents had not made the payment. The petitioner contended that the respondents admitted an amount of Rs.3,28,869/- (including GST of Rs.16,372/-) was payable but still no payment was being made, which was considered arbitrary. The respondents, through written instructions, admitted the payable amount and attributed the delay to safeguards for public money, arguing against interest on the delay. The Court considered previous judgments on similar non-payment issues.

Key Issues

1. Whether the non-payment of admitted dues to the petitioner is arbitrary and warrants interference by this Court, as per the principles laid down in previous judgments of this Court? Petitioner's Arguments: The petitioner argued that the respondents' failure to pay the admitted amount of Rs.3,28,869/-, despite acknowledging it, is arbitrary and high-handed, necessitating judicial intervention. They relied on previous orders of the Court, including a learned Single Judge's order 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, based on written instructions, admitted the payable amount of Rs.3,28,869/-. They contended that the delay in payment was due to the need for safeguards of public money and therefore, interest on the delayed payment should not be considered.