Rapaka Uday Bhaskar Rao vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted contractual dues was arbitrary and directed the respondents to release the amount of Rs. 58,29,238/- to the petitioner. The Court also directed the payment of interest at the rate of 6% per annum, referencing a judgment of the Division Bench of this Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. The respondents were given a period of six weeks from the date of receipt of the order to make the payment. The Court also clarified that it would be open for the petitioner to pursue their claim for a higher rate of interest and any other due amounts in an appropriate forum. The issue of the exact amount payable and the rate of interest beyond 6% was expressly left open for adjudication in another forum.
Facts
The petitioner was awarded a contract for work under a scheme in West Godavari District. After completing the work, final bills were prepared for Rs. 58,29,238/-. The petitioner approached the High Court as the respondents had not made the payment. The petitioner contended that the non-payment was arbitrary, despite the respondents admitting the entitlement to the amount. The respondents, through the learned Government Pleader, admitted the claim but stated that payment was pending due to non-release of Letter of Credit (LOC) by the Government. They assured that bills would be paid soon after the LOC was released.
Key Issues
1. Whether the non-payment of the admitted contractual dues of Rs. 58,29,238/- by the respondents to the petitioner is arbitrary and warrants interference by this Court under Article 226 of the Constitution of India? Petitioner's contentions: The petitioner argued that the respondents admitted the entitlement to the payment of Rs. 58,29,238/- but failed to make the payment, which was arbitrary and high-handed, necessitating the Court's intervention. The petitioner relied on previous orders of this Court, including a judgment dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held that such non-payment is arbitrary and should be cleared promptly. Respondents' contentions: The respondents, through the learned Government Pleader for Irrigation, admitted the petitioner's claim. They explained that the delay in payment was due to the non-release of the Letter of Credit (LOC) by the Government, and that the bills would be paid once the LOC was released.
AI-generated summary — verify with the full judgment below
HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.14528 of 2023 ORDER:
The petitioner had been awarded the contract of work(s) under the subject scheme in West Godavari District. After execution of the said contract, final bills were prepared for a sum of Rs.58,29,238/- 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 Rs.58,29,238/-, 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.
On the other hand, learned Government Pleader for Irrigation while admitting about the claim of the petitioner filed
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.