V Siva Sunil Kumar Reddy vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted contractual dues was arbitrary. Following the principle laid down in previous judgments of the High Court, including a Division Bench decision in Writ Appeal No.724 of 2021 and batch dated 12.10.2023, the Court directed the respondents to release the principal amount of Rs.51,99,938/- to the petitioner. Additionally, the Court ordered the payment of interest at the rate of 6% per annum on this amount. The petitioner was also granted the liberty to pursue their claim for a higher rate of interest, if applicable, in an appropriate forum. The Court did not expressly leave any issue undecided, but the petitioner's right to claim higher interest was preserved for a separate adjudication.
Facts
The petitioner was awarded contracts for various works in Prakasam District. Upon completion, a final bill of Rs.51,99,938/- was prepared. The respondents failed to make the payment, leading the petitioner to file a writ petition. The petitioner contended that the respondents admitted the entitlement to the sum but had not made the payment, which was arbitrary. The respondents, through the Government Pleader, admitted the claim but cited a lack of Letter of Credit (LOC) as the reason for non-payment, assuring payment upon release of LOC and uploading bills on the CFMS portal.
Key Issues
1. Whether the non-payment of the admitted contractual dues of Rs.51,99,938/- by the respondents to the petitioner is arbitrary and requires the intervention of this Court under Article 226 of the Constitution of India? Petitioner's arguments: The petitioner argued that the non-payment of the admitted sum was arbitrary and high-handed, necessitating judicial intervention. 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 similar non-payments as arbitrary and requiring prompt clearance. Respondents' arguments: The respondents, while admitting the petitioner's claim, submitted that payment was delayed due to a lack of Letter of Credit (LOC). They assured that payments would be processed on the CFMS portal once the LOC was released. They also referred to instructions received from the Executive Engineer, Nellore Central Division, Nellore, dated 03.01.2024.
AI-generated summary — verify with the full judgment below
THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.32848 OF 2023 ORDER:
The petitioner had been awarded the contract of various works under the subject in Prakasam District. After execution of the said contract(s), a final bill was prepared for a sum of Rs.51,99,938/- 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.
2
On the other hand, learned Government Pleader for Irrigation while admitting about the claim of
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
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.