Katragadda Siva Ramakrishna vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted contractual dues was arbitrary and required intervention. Following its own previous orders and the submissions of the respondents that payment would be made upon release of the LOC and uploading to the CFMS portal, the Court directed the respondents to release the admitted amount of Rs. 31,49,686/- to the petitioner. Furthermore, in line with the Division Bench judgment in Writ Appeal No.724 of 2021 and batch dated 12.10.2023, the Court directed that interest at the rate of 6% per annum be paid on the amount. The payment was 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 in an appropriate forum. No order as to costs was made.
Facts
The petitioner was awarded a contract for works in West Godavari District and completed the work, submitting a final bill for Rs. 31,49,686/-. The respondents, despite admitting the petitioner's entitlement to the payment, had not released the funds. The petitioner approached the High Court by way of a writ petition, contending that the non-payment was arbitrary and high-handed. The respondents, through the Government Pleader, submitted that the Letter of Credit (LOC) for the contract had not yet been released. They assured that upon release of the LOC, the bill would be uploaded to the CFMS portal and payment would be made immediately thereafter.
Key Issues
1. Whether the non-payment of the admitted contractual dues by the respondents is arbitrary and warrants interference by this Court under Article 226 of the Constitution of India? 2. Whether the petitioner is entitled to interest on the delayed payment, and if so, at what rate? The petitioner argued that the respondents' failure to make the admitted payment was arbitrary and high-handed, necessitating judicial intervention. They relied on previous orders of the High Court, including a Single Judge's order dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held non-payment of dues as arbitrary. The respondents, while admitting the claim, stated that payment was contingent on the release of the Letter of Credit (LOC) and subsequent uploading of the bill on the CFMS portal. They did not explicitly argue against the entitlement to payment but indicated procedural delays. The judgment also notes reliance on a Division Bench judgment in Writ Appeal No.724 of 2021 and batch dated 12.10.2023 regarding interest.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.9399 of 2023 ORDER:
The petitioner had been awarded the contract of works under the subject scheme in West Godavari District. After execution of the said contract, a final bill was prepared for a sum of Rs.31,49,686/- 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 clai
The judgment continues below.
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