Sri Lotus Constructions vs. The State Of Ap
Held
The Court held that the non-payment of admitted contractual dues by the respondents was arbitrary, aligning with its previous pronouncements. The Court directed the respondents to release the principal amount of Rs.46,34,607/- to the petitioner. Furthermore, in line with the judgment of the Division Bench of the High Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023, the Court directed the payment of interest at the rate of 6% per annum on the principal amount. The payment was ordered to be made within six weeks from the date of receipt of the order. The Court also clarified that it would be open for the petitioner to pursue a claim for a higher rate of interest, if applicable, in an appropriate forum. No order as to costs was made.
Facts
The petitioner, who was awarded contracts for various works in Nellore District, executed the said contracts and prepared a final bill for Rs.46,34,607/-. The respondents failed to make the payment for this amount, leading the petitioner to approach the High Court via a writ petition. The petitioner contended that despite the respondents admitting entitlement to the sum, payment was withheld arbitrarily. The respondents, through the Government Pleader, admitted the claim but stated that payment was delayed due to a lack of Letter of Credit (LOC). They assured that once the LOC is released, the bills would be uploaded on the CFMS portal and payment made.
Key Issues
1. Whether the non-payment of the admitted contractual dues of Rs.46,34,607/- by the respondents to the petitioner is arbitrary and warrants interference by 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 Single Judge's order dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held such non-payment as arbitrary and directed prompt clearance of dues. Respondents' arguments: The learned Government Pleader for Irrigation admitted the petitioner's claim. The respondents' contention was that the delay in payment was solely due to a lack of Letter of Credit (LOC). They submitted instructions from the Executive Engineer, Nellore Central Division, Nellore, dated 03.01.2024, stating that payment would be processed upon release of the LOC.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.32835 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.46,34,607/- 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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