V Siva Sunil Kumar Reddy vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of the admitted amount to the petitioner was arbitrary, aligning with its previous pronouncements and the petitioner's submissions. The Court considered the respondents' submission regarding the delay due to a lack of LOC but directed immediate action. Following the principles laid down in the judgment of the Division Bench of this Court 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.25,13,429/- 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 liberty to pursue a claim for a higher rate of interest, if applicable, in an appropriate forum. The Court did not expressly leave any issue undecided.
Facts
The petitioner, who was awarded contracts for various works in Nellore District, approached the High Court by way of a writ petition seeking payment of Rs.25,13,429/- for executed work, as the final bill had been prepared but payment was not made by the respondents. The petitioner contended that the non-payment was arbitrary, despite the respondents admitting the entitlement to the sum. The respondents, through the learned Government Pleader, admitted the claim but stated that payment was delayed due to a lack of Letter of Credit (LOC). They assured that upon release of the LOC, the bills would be uploaded on the CFMS portal and payment would be processed.
Key Issues
1. Whether the non-payment of Rs.25,13,429/- to the petitioner for executed works, despite admission of entitlement, constitutes arbitrary and high-handed action by the respondents, warranting the interference of this Court under Article 226 of the Constitution of India? Petitioner's contention: The petitioner argued that the respondents' failure to make the admitted payment was arbitrary and required judicial intervention. They relied on previous orders of the Court, including a Single Judge's order dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held such non-payment as arbitrary. Respondents' contention: The learned Government Pleader for Irrigation, while admitting the petitioner's claim, submitted that the delay in payment was due to a lack of LOC. They assured that payment would be made soon after the LOC was released and bills were uploaded on the CFMS portal. No specific legal provisions were cited by the respondents in their argument.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.32855 OF 2023 ORDER:
The petitioner had been awarded the contract of various works under the subject in Nellore District. After execution of the said contract(s), a final bill was prepared for a sum of Rs.25,13,429/- 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.
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On the other hand, learned Government Pleader for Irrigation while admitting about the claim of t
The judgment continues below.
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