S Venkata Subba Reddy vs. The State Of Andhra Pradesh
Held
The Court held that there was no justification for the respondent authorities to withhold the Earnest Money Deposit (EMD) and GST amount of Rs. 17,72,823/- from the petitioner. This was based on the fact that the petitioner had completed the works allotted by the respondents as per the agreements and that the defect liability period had also concluded. The Court found no valid reason for the continued withholding of these funds. Consequently, the Court directed the respondents to release the EMD and GST due to the petitioner within four weeks from the date of receipt of the order. No order as to costs was made.
Facts
The petitioner filed a writ petition aggrieved by the respondent's failure to release Earnest Money Deposit (EMD) and GST totaling Rs. 17,72,823/-. The petitioner had entered into agreements with the respondents for works in YSR Kadapa District and completed them as per the agreements. The work was measured and paid for, but the EMD and GST were not released even after the defect liability period concluded. The petitioner had approached the respondents multiple times for reimbursement. The respondent authorities, represented by the learned Government Pleader, stated they were ready to pay the amounts due.
Key Issues
1. Whether the respondent authorities are justified in withholding the Earnest Money Deposit (EMD) and Goods and Services Tax (GST) amount of Rs. 17,72,823/- from the petitioner, despite the completion of works and the defect liability period. Petitioner's contention: The petitioner argued that the work was completed as per the agreements, verified by the respondent authorities, and payments for the execution of work were made. They contended that there was no justification for withholding the EMD and GST after the defect liability period had expired and sought a direction for their release. Revenue/State's contention: The learned Government Pleader for the respondents submitted that the respondents were ready to pay the amounts due to the petitioner.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.22689 of 2023 ORDER:
The present petition is filed aggrieved by the action of the respondent in not releasing the refund of Earnest Money Deposit (EMD) and GST totaling to Rs.17,72,823/-.
Learned counsel for the petitioner submits that the petitioner has entered into various agreements with the respondents for the works in YSR Kadapa District and he completed the work as per the agreements. Execution of work was entered into measurement book prepared by the respondent authorities without noticing any defects. The amount for execution of work was paid to the petitioner, but the earnest money deposit and GST was not released even after completion of defect liability period. The petitioner has approached the respondents several times for reimbursement of the earnest money deposit and GST. As the respondents have failed to release the earnest money deposit and withheld amount, the petitioner is seeking a direction to the respondent authorities for release of earnest money deposit and GST.
Heard the learned counsel for the petitioner and learned counsel for the respondents.
Learned
The judgment continues below.
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Reproduced from the public record of the Andhra Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.