S V V Rambabu vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted contractual dues by the respondents was arbitrary. Following its own previous directions in similar cases, including the judgment in W.P.No.10038 of 2021 and batch, the Court directed the respondents to release the admitted amount of Rs. 46,90,771/- to the petitioner. Additionally, the Court directed the payment of interest at 6% per annum, referencing a Division Bench judgment in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. The payment was to be made within six weeks of receiving the order. The petitioner was also granted liberty to pursue a claim for higher interest, if applicable, in an appropriate forum. The Court explicitly noted that it would be open for the petitioner to agitate his claim for a higher rate of interest in an appropriate forum, implying this aspect was not fully decided on merits in this writ petition.
Facts
The petitioner was awarded a contract for a work under a Scheme in West Godavari District. Upon completion, a final bill of Rs. 46,90,771/- was prepared. The petitioner approached the High Court as the payment was not made by the respondents. The petitioner contended that the respondents admitted the entitlement to payment but failed to disburse the amount, which was arbitrary. The respondents, through the learned Government Pleader, admitted the claim and stated that the bills were not uploaded in CFMS due to a lack of LOC (Letter of Credit), but would be processed upon its release. The Court considered previous judgments regarding non-payment of dues.
Key Issues
1. Whether the non-payment of the admitted contractual dues by the respondents to the petitioner is arbitrary and requires the interference of this Court under Article 226 of the Constitution of India? Petitioner's arguments: The petitioner argued that the respondents admitted the entitlement to the payment of Rs. 46,90,771/- but the non-payment was arbitrary and high-handed, necessitating judicial intervention. The petitioner relied on previous orders of the Court, including a Single Judge's order in W.P.No.10038 of 2021 and batch, which held that such non-payment is arbitrary and requires prompt clearance. Revenue/State's arguments: The learned Government Pleader for Irrigation admitted the petitioner's claim and placed on record instructions indicating that the delay in payment was due to the bills not being uploaded in CFMS owing to a lack of LOC. The respondents assured that the bills would be processed soon after the release of LOC.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.12508 OF 2023
ORDER:
The petitioner had been awarded the contract of a work under a Scheme in West Godavari District. After execution of the said contract, a final bill was prepared for a sum of Rs.46,90,771/- 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 petitio
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