S V V Rambabu vs. The State Of Ap
Held
The Court held that the non-payment of the admitted sum of Rs. 40,20,481/- to the petitioner was arbitrary. Following its previous directions and the submissions of the parties, the Court directed the respondents to release the principal amount of Rs. 40,20,481/- to the petitioner. Furthermore, the Court directed the payment of interest at the rate of 6% per annum on this amount, referencing a Division Bench judgment in Writ Appeal No.724 of 2021 and batch. The payment was to be made within six weeks of the order's receipt. The petitioner was also granted liberty to pursue a claim for a higher rate of interest in an appropriate forum. The Court explicitly noted that it would be open for the petitioner to agitate for a higher rate of interest, implying this aspect was not fully decided in this order.
Facts
The petitioner was awarded a contract for work in West Godavari District and submitted a final bill for Rs. 40,20,481/-. Despite the respondents admitting the petitioner's entitlement to this sum, payment had not been made. The petitioner approached the High Court via a writ petition, contending that the non-payment was arbitrary. The respondents, through the Government Pleader, stated that payment was delayed due to a lack of Letter of Credit (LOC) and assured that payment would be made upon its release. The Court considered previous judgments regarding arbitrary non-payment of dues.
Key Issues
1. Whether the non-payment of Rs. 40,20,481/- to the petitioner for executed work is arbitrary and warrants interference by this Court under Article 226 of the Constitution of India? Petitioner's arguments: The petitioner argued that the respondents admitted the entitlement to the payment, and the continued non-payment was arbitrary and high-handed, necessitating judicial intervention. The petitioner relied on previous orders of the Court, including a Single Judge's order in W.P.No.10038 of 2021 and batch, which held such non-payment as arbitrary. Respondents' arguments: The learned Government Pleader for Irrigation, while admitting the claim, submitted instructions indicating that payment could not be made due to a lack of LOC. The respondents assured that payments would be processed once the LOC was released.
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HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.12622 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, a final bill was prepared for a sum of Rs.40,20,481/- 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
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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 judgment continues below.
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