Anne Lakshmana Rao vs. The State Of Andhra Pradesh

Held

The Court held that the non-payment of the admitted sum of Rs.9,76,663/- by the respondents was arbitrary and directed its release to the petitioner along with interest at 6% per annum. This direction was based on the judgment of the Division Bench of the High Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. The Court also directed the respondents to pay the EMD, FSD, GST, and other security deposits to the petitioner as per agreement No.587NC/2017-18 dated 08.11.2017. The petitioner was also granted the liberty to agitate their claim for a higher rate of interest, if any payable, in an appropriate forum. The operative directions were to release the principal amount within six weeks and the security deposits within four weeks from the date of receipt of a copy of the order. No order as to costs was made.

Facts

The petitioner, who was awarded contracts for various works in Krishna District, approached the High Court by way of a writ petition. The petitioner claimed that a final bill totaling Rs.9,76,663/-, which included EMD, FSD, GST, and other security deposits, had been prepared after the execution of the contract. However, the respondents had failed to make the payment. The petitioner contended that the respondents admitted the entitlement to the sum but had not made the payment, which was arbitrary and high-handed. The respondents, through the learned Government Pleader, acknowledged the claim and stated that the bill would be cleared soon after the release of BRO by the Government, as per instructions received.

Key Issues

1. Whether the non-payment of the admitted sum of Rs.9,76,663/- by the respondents to the petitioner is arbitrary and requires the interference of this Court, as per the petitioner's contention. 2. Whether the respondents are liable to pay the EMD, FSD, GST, and other security deposits to the petitioner as per the agreement. Petitioner's Arguments: The petitioner argued that the non-payment of the admitted sum was arbitrary and high-handed, necessitating court intervention. They relied on previous orders of the Court, including a Single Judge's judgment in W.P.No.10038 of 2021 and batch, which held such non-payment as arbitrary and requiring prompt clearance. Revenue/State's Arguments: The learned Government Pleader for Irrigation admitted the petitioner's claim and placed on record instructions from the Executive Engineer, Vijayawada, dated 23.12.2023. The submission was that the bill would be cleared soon after the release of BRO by the Government.