S V V Rambabu vs. The State Of Andhrapradesh
Held
The Court held that the non-payment of the admitted contractual dues was arbitrary. Citing previous orders of the Court, including a Division Bench judgment in Writ Appeal No.724 of 2021 and batch dated 12.10.2023, the Court directed the respondents to release the amount of Rs. 48,89,967/- to the petitioner. Additionally, the Court directed the payment of interest at the rate of 6% per annum on this sum. The respondents were given a period of six weeks from the date of receipt of the order to comply. The petitioner was also granted liberty to pursue a claim for a higher rate of interest, if applicable, in an appropriate forum. The Court made no order as to costs.
Facts
The petitioner was awarded a contract for a work scheme in West Godavari District and completed it, submitting a final bill for Rs. 48,89,967/-. The respondents failed to make the payment, prompting the petitioner to file a writ petition. The petitioner argued that the respondents admitted the entitlement to the sum but failed to pay, which was arbitrary. The respondents, through the learned Government Pleader for Irrigation, 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 Executive Engineer, Bhimavaram, provided instructions dated 23.01.2024.
Key Issues
1. Whether the non-payment of the admitted contractual dues of Rs. 48,89,967/- by the respondents to the petitioner is arbitrary and warrants interference by this Court under Article 226 of the Constitution of India? Petitioner's Contention: The petitioner argued that the respondents' admitted entitlement to the payment of Rs. 48,89,967/- and the subsequent non-payment constituted arbitrary and high-handed action, necessitating judicial intervention. The petitioner relied on previous orders of this Court, including a judgment dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held similar non-payments as arbitrary and requiring prompt clearance. Revenue/State's Contention: The learned Government Pleader for Irrigation admitted the petitioner's claim. Instructions from the Executive Engineer indicated that the delay in payment was due to bills not being uploaded in CFMS owing to a lack of LOC, and that processing would occur upon its release.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.12671 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.48,89,967/- 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
The judgment continues below.
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