N Venkata Subbaiah vs. The State Of Andhra Pradesh
Held
The Court held that there was no justification for withholding the Earnest Money Deposit (EMD) and Future Security Deposit (FSD) amounts from the petitioner, considering the completion of the defect liability period and the successful execution of the works allotted by the respondents. The Court found the petitioner's grievance to be valid. Consequently, the Court directed the respondents to release the EMD and FSD amounts due to the petitioner. The operative direction was for the respondents to release these amounts within a period of four weeks from the date of receipt of a copy of the order. No costs were awarded.
Facts
The petitioner filed a writ petition aggrieved by the respondent's failure to release 7.5% of Earnest Money Deposit (EMD) and Future Security Deposit (FSD) amounts. The petitioner had entered into agreements with the respondent for works in Eluru District, completed the works as per the agreements, and received payment for the execution of work. However, the EMD and FSD amounts were not released even after the completion of the defect liability period. The petitioner had approached the respondents multiple times for the reimbursement of these amounts. The respondent, through the learned Government Pleader, stated readiness to pay the amounts due to the petitioner.
Key Issues
1. Whether the respondent authorities are justified in withholding the Earnest Money Deposit (EMD) and Future Security Deposit (FSD) amounts from the petitioner, despite the completion of the works and the defect liability period, and if not, what is the appropriate relief? Petitioner's contention: The petitioner argued that the works were completed as per the agreements, verified by the respondent authorities without defects, and payments for execution were made. They contended that the EMD and FSD amounts should be released after the completion of the defect liability period, and the respondent's failure to do so was unjustified. Respondent's contention: The learned Government Pleader for the respondents submitted that the respondents were ready to pay the amounts due to the petitioner.
AI-generated summary — verify with the full judgment below
THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.31990 of 2023 ORDER:
The present petition is filed aggrieved by the action of the respondent in not releasing the refund of 7.5% of Earnest Money Deposit (EMD) and Future Security Deposit(FSD) amounts.
Learned counsel for the petitioner submits that the petitioner has entered into various agreements with the respondents for the works in Eluru District and he completed the work as per the agreements. Execution of work was entered into measurement book prepared by the respondent authorities without noticing any defects. The amount for execution of work was paid to the petitioner, but the Earnest Money Deposit (EMD) and Future Security Deposit(FSD) amounts was not released even after completion of defect liability period. The petitioner has approached the respondents several times for reimbursement of the Earnest Money Deposit (EMD) and Future Security Deposit(FSD) amounts. As the respondents have failed to release the Earnest Money Deposit (EMD) and Future Security Deposit(FSD) amounts, the petitioner is seeking a direction to the respondent authorities for release of Earnest Money Depo
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.