Psr Constructions vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted contractual dues by the respondents was arbitrary and required intervention. Citing previous orders of the High Court, including a Single Judge's judgment in W.P.No.10038 of 2021 and batch, the Court acknowledged that such non-payments are considered arbitrary. Furthermore, in light of a Division Bench judgment 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.6,44,902/- to the petitioner along with interest at 6% per annum. 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. The writ petition was disposed of with these directions, and the respondents were ordered to make the payment within six weeks of receiving the order. No order as to costs was made.
Facts
The petitioner, having been awarded a contract for works in Prakasam District, completed the work and submitted a final bill for Rs. 6,44,902/-. The respondents, despite admitting the petitioner's entitlement to this sum, had not made the payment. 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, admitted the claim but stated that the budget had not been released, preventing payment. They assured that payment would be made once the budget was released.
Key Issues
1. Whether the non-payment of the admitted contractual dues by the respondents is arbitrary and requires the High Court's intervention under Article 226 of the Constitution of India, as argued by the petitioner? 2. Whether the respondents are liable to pay interest on the delayed payment, and if so, at what rate, considering the petitioner's claim for payment and the respondents' admission of liability but delay due to budget constraints? Petitioner's arguments: The petitioner argued that the respondents' admitted non-payment of the final bill amount was arbitrary and high-handed, necessitating judicial intervention. They relied on previous orders of the High Court, including a Single Judge's order in W.P.No.10038 of 2021 and batch, which held similar non-payments as arbitrary and requiring prompt clearance. Respondents' arguments: The learned Government Pleader for Irrigation, while admitting the petitioner's claim, submitted that the delay in payment was solely due to the non-release of the budget. They assured that payments would be made once the budget was released. The respondents did not explicitly argue against the petitioner's claim for interest but indicated the reason for the delay.
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HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.31788 of 2023 ORDER:
The petitioner had been awarded the contract of work(s) under the subject scheme in Prakasam District. After execution of the said contract, a final bill was prepared for a sum of Rs.6,44,902/- 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.
On the other hand, learned Government Pleader for Irrigation while admitting about the claim of the peti
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