M/S Srm Construction vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted dues by the respondents was arbitrary. Following its previous orders, including the judgment in W.P.No.10038 of 2021 and batch, the Court directed the respondents to release the admitted amount of Rs.29,78,611/- to the petitioner. Additionally, the Court directed the payment of interest at the rate of 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 ten weeks from the receipt of the order. The Court also clarified that it would be open for the petitioner to 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 a contract for work in West Godavari District, and a final bill of Rs.33,95,173/- was prepared. The petitioner approached the High Court as the payment was not made. The petitioner contended that the respondents admitted an amount of Rs.29,78,611/- was payable but still no payment was made, which was considered arbitrary. The respondents, through written instructions from the Executive Engineer, admitted the payable amount of Rs.29,78,611/-. They stated that the bill was not uploaded due to a pending Letter of Credit (LOC), and payment would be made upon its release.
Key Issues
1. Whether the non-payment of admitted dues by the respondents is arbitrary and warrants interference by this Court, as contemplated under Article 226 of the Constitution of India? Petitioner's arguments: The petitioner argued that the respondents' failure to make the admitted payment of Rs.29,78,611/- was arbitrary and high-handed, necessitating judicial intervention. They relied on previous orders of the High Court, including a 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/State's arguments: The learned Government Pleader for Irrigation placed on record written instructions admitting the amount of Rs.29,78,611/- payable to the petitioner. They explained that the delay in payment was due to the subject bill not being uploaded for want of LOC, and assured that payment would be made soon after the LOC was released.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.14505 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 contract, a final bill was prepared for a sum of Rs.33,95,173/- 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.29,78,611/-, 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 r
The judgment continues below.
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