Sadaram Dhana Suryanarayana vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted contractual dues by the respondents is arbitrary and warrants intervention. Following the principle established in previous orders of the Court, including the judgment in W.P.No.10038 of 2021 and batch, the Court directed the respondents to release the admitted amount of Rs. 29,80,178/- to the petitioner. Additionally, the Court directed the payment of interest at the rate of 6% per annum, referencing the judgment of the Division Bench in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. The payment is to be made within six weeks from the receipt of the order. The petitioner was also granted liberty to pursue a claim for a higher rate of interest in an appropriate forum. No issue was expressly left undecided.
Facts
The petitioner, a contractor, was awarded various works in West Godavari District. After completing the contract, a final bill of Rs. 29,80,178/- was prepared. The petitioner approached the High Court as the respondents had not made the payment despite admitting the petitioner's entitlement. The petitioner contended that the non-payment was arbitrary and high-handed. The respondents, through the learned Government Pleader, admitted the claim and stated that payment would be made soon after the release of an LOC (Letter of Credit) by the Government, as per instructions from the Executive Engineer.
Key Issues
1. Whether the non-payment of the admitted contractual dues by the respondents is arbitrary and warrants interference by this Court under its writ jurisdiction, as per Section 226 of the Constitution of India? Petitioner's Arguments: The petitioner argued that the respondents admitted the claim of Rs. 29,80,178/- but failed to make the payment, which is arbitrary and high-handed. They relied on previous orders of the Court, including a learned Single Judge's judgment in W.P.No.10038 of 2021 and batch, which held that non-payment of dues is arbitrary and requires prompt clearance. Revenue/State's Arguments: The learned Government Pleader for Irrigation admitted the petitioner's claim and placed on record instructions stating that payment would be made upon the release of LOC by the Government. No specific legal provisions or precedents were cited by the revenue.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.42136 of 2022 ORDER:
The petitioner had been awarded the contract of various works under various schemes in West Godavari District. After execution of the said contract, a final bill was prepared for a sum of Rs.29,80,178/-, 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 th
The judgment continues below.
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