Yerupudi Anjaneyulu vs. The State Of Ap
Held
The Court held that the respondents' non-payment of admitted dues was arbitrary, aligning with previous judgments of the High Court. The Court acknowledged the respondents' admission of entitlement to Rs.5,71,000/- and Rs.5,72,000/- and their explanation regarding the lack of LOC. Based on the submissions and prior judicial pronouncements, the Court directed the respondents to release the admitted amounts of Rs.5,71,000/- and Rs.5,72,000/- to the petitioner. Furthermore, the Court directed the payment of interest at the rate of 6% per annum on these amounts, 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 Court also clarified that the petitioner could pursue claims for a higher rate of interest or any other due amounts in an appropriate forum. No costs were awarded.
Facts
The petitioner was awarded contracts for work in West Godavari District and submitted final bills totaling Rs.12,66,575/-. The respondents failed to make payments. The petitioner contended that despite the respondents admitting entitlement to Rs.5,71,000/- and Rs.5,72,000/-, payment was withheld, which was arbitrary. The petitioner approached the High Court via a writ petition seeking intervention. The respondents, through the Government Pleader, admitted entitlement to Rs.5,71,000/- and Rs.5,72,000/- but cited a lack of Letter of Credit (LOC) as the reason for non-payment. They assured payment upon release of the LOC.
Key Issues
1. Whether the non-payment of admitted dues by the respondents, despite the petitioner having completed the contracted work, is arbitrary and warrants interference by this Court under Article 226 of the Constitution of India? The petitioner argued that the non-payment of admitted amounts is arbitrary and high-handed, necessitating judicial intervention. They relied on previous orders of the High Court, including a learned Single Judge's order dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held such non-payment as arbitrary and requiring clearance. The respondents, represented by the learned Government Pleader, admitted the petitioner's entitlement to Rs.5,71,000/- and Rs.5,72,000/-. They attributed the delay in payment to a lack of Letter of Credit (LOC) and assured that payments would be made promptly upon its release. No specific legal provisions or precedents were cited by the respondents in their argument.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.10178 of 2023 ORDER:
The petitioner had been awarded the contract of work(s) under the subject scheme in West Godavari District. After execution of the said contracts, final bills were prepared for a sum of Rs.12,66,575/- as per the sanctioned orders. As the payments of the said amounts have 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.5,71,000/- and Rs.5,72,000/- no payments are 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 submitted instructions of respo
The judgment continues below.
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