S V V Rambabu vs. The State Of Ap
Held
The Court held that the non-payment of admitted dues is arbitrary. Following its own previous directions in similar cases, including the judgment in W.P.No.10038 of 2021 and batch, the Court directed the respondents to release the admitted amount of Rs. 37,95,863/- to the petitioner. Additionally, the Court directed the payment of interest at 6% per annum, referencing a judgment of the Division Bench in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. The payment is 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, if applicable, in an appropriate forum. No order as to costs was made.
Facts
The petitioner was awarded a contract for work under a scheme in West Godavari District and completed the work, submitting a final bill for Rs. 37,95,863/-. The respondents have not made this payment. The petitioner contends that the non-payment is arbitrary, despite the respondents admitting the entitlement to the sum. The petitioner approached the High Court by way of a writ petition. 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). They assured that payment would be made upon release of the LOC.
Key Issues
1. Whether the non-payment of the admitted contractual dues of Rs. 37,95,863/- by the respondents to the petitioner 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 sum of Rs. 37,95,863/- but have failed to make the payment. This non-payment is characterized as arbitrary and high-handed, necessitating the Court's intervention. The petitioner relied on previous orders of the Court, including a judgment dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held similar non-payments as arbitrary and directed their clearance. Revenue/State's arguments: The learned Government Pleader for Irrigation admitted the petitioner's claim. However, it was submitted that payment could not be processed due to a lack of LOC, as per instructions received from the Executive Engineer. The Government Pleader assured that payments would be made soon after the release of the LOC.
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HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.12636 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.37,95,863/- 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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