M/S Kiran Infra vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted dues by the respondents was arbitrary and required intervention, aligning with its previous judgments. The Court directed the respondents to release the admitted amount of Rs. 24,85,295/- to the petitioner. Furthermore, in view of a Division Bench judgment of this Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023, the Court 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 date of receipt of the order to make the payment. The Court also clarified that it would be open for the petitioner to pursue their claim for a higher rate of interest and any other due amounts in an appropriate forum. No order as to costs was made.
Facts
The petitioner was awarded a contract for works under a scheme in West Godavari District and submitted a final bill for Rs. 30,93,145/-. The respondents admitted an amount of Rs. 24,85,295/- was payable but had not made the payment. The petitioner approached the High Court by way of a writ petition, contending that the non-payment was arbitrary and high-handed. The respondents, through written instructions, confirmed the admitted amount of Rs. 24,85,295/- was payable but the bill was not uploaded for payment due to a lack of LOC (Letter of Credit). They assured payment upon uploading the bill.
Key Issues
1. Whether the non-payment of admitted dues by the respondents is arbitrary and requires the interference of this Court, as per the principles laid down in previous judgments of this Court? 2. Whether the petitioner is entitled to interest on the delayed payment of admitted dues, and if so, at what rate? Petitioner's Contentions: The petitioner argued that the non-payment of the admitted amount of Rs. 24,85,295/- was arbitrary and high-handed, necessitating judicial intervention. They relied on previous orders of the Court, including a learned Single Judge's order dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held that such non-payment is arbitrary and dues should be cleared promptly. Revenue's Contentions: The respondents, through the learned Government Pleader, admitted the amount of Rs. 24,85,295/- was payable. They explained that the delay was due to the bill not being uploaded for payment owing to a lack of LOC, and assured that payment would be made soon after uploading the bill.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.13666 of 2023 ORDER:
The petitioner had been awarded the contract of works under the subject scheme in West Godavari District. After execution of the said contract, a final bill was prepared for a sum of Rs.30,93,145/- 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 Rs.24,85,295/-, 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
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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 placed on record the written instructions
The judgment continues below.
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