K. Sujatha vs. The State Of Andhra Pradesh
Held
The Court held that the respondents' action of withholding admitted payments was arbitrary. The Court directed the respondents to clear the admitted amount payable to the petitioner, along with interest at 6% per annum, within six weeks from the date of receiving the order. This direction was based on a judgment of the Division Bench of this Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. The Court further stipulated that if payment was not made within the stipulated period, the bill amounts would carry interest at 12% per annum until actual payment. It was also clarified that after payment of the admitted amount with interest, the withheld amount and other deposits would be released without attracting any interest, as the defect liability period had been completed as per the agreement. The Court did not explicitly leave any issue undecided.
Facts
The petitioner filed a writ petition seeking a mandamus to direct the respondents to pay the final bill, withheld amount, and other deposits related to the execution of work under a scheme. The petitioner contended that despite the respondents admitting entitlement to the payment, no payment was being made, which was arbitrary. The respondents, through the Executive Engineer, stated that payment was awaited due to a pending Letter of Credit (LOC). The Court noted previous judgments taking a view that non-payment of dues is arbitrary and requires clearance. The specific tax period is not mentioned. The amount in dispute is not explicitly stated, but it pertains to a final bill, withheld amount, and other deposits.
Key Issues
1. Whether the respondents' action in withholding payment of the final bill, withheld amount, and other deposits, despite admitting the petitioner's entitlement, is illegal, arbitrary, and contrary to the principles of natural justice? Petitioner's Contention: The petitioner argued that the non-payment of admitted dues is arbitrary and high-handed, warranting judicial intervention. They relied on this Court's previous orders, including a learned Single Judge's judgment in W.P.No.10038 of 2021 and batch, which held such non-payment as arbitrary and requiring prompt clearance. Respondents' Contention: The respondents, represented by the Government Pleader, submitted written instructions stating that payment was delayed as the bill was awaited for want of an LOC. They assured that payments would be made upon receipt of the LOC. No specific legal provisions or precedents were cited by the respondents.
AI-generated summary — verify with the full judgment below
THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION No.13057 of 2023 ORDER:
This writ petition under Article 226 of Constitution of India is filed to issue Writ of Mandamus, declaring the action of respondents in not paying the final bill and withheld amount along with other deposits, payable to the petitioner in relation to the execution of work under the subject scheme, as illegal, arbitrary and contrary to the principles of natural justice.
It is the contention of the petitioner that even though the respondents admitted that the petitioner is entitled for payment of the final bill and withheld amount along with other deposits, 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.
During hearing, learned Government Pleader for Irrigation placed on recor
The judgment continues below.
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