S V V Rambabu vs. The State Of Ap
Held
The Court held that the non-payment of admitted contractual dues was arbitrary and required the respondents to release the payment. The Court directed the respondents to release the sum of Rs.40,07,323/- to the petitioner. Furthermore, in line with the judgment of the Division Bench of this Court 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 this amount. The payment was to be made within six weeks from the date of receipt of the order. The Court also noted 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.40,07,323/-. The respondents, despite admitting the petitioner's entitlement to the payment, had not made the payment, leading the petitioner to file a writ petition. The petitioner contended that the non-payment was arbitrary and high-handed. The respondents, through the learned Government Pleader, admitted the claim but stated that payment could not be made due to a lack of 'LOC' (Letter of Credit), assuring that payment would be processed upon its release.
Key Issues
1. Whether the non-payment of the admitted contractual dues of Rs.40,07,323/- by the respondents to the petitioner, despite the petitioner having completed the work, is arbitrary and warrants interference by this Court under Article 226 of the Constitution of India? Petitioner's Contention: 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 Court, including a learned Single Judge's order dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held similar non-payments as arbitrary and requiring prompt clearance. Respondents' Contention: The learned Government Pleader for Irrigation, while admitting the petitioner's claim, submitted instructions indicating that payment was delayed due to a lack of 'LOC'. They assured that payment would be made promptly after the release of the 'LOC'.
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HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.12644 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.40,07,323/- 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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