Katragadda Siva Ramakrishna vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted contract dues by the respondents was arbitrary and required intervention. The Court directed the respondents to release the admitted amount of Rs.32,47,121/- to the petitioner. Furthermore, the Court ordered the payment of interest at the rate of 6% per annum on this amount, referencing a judgment of the Division Bench of the High Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. The payment was to be made within a period of six weeks from the date of receipt of a copy of the order. The Court also clarified that it would be open for the petitioner to pursue their claim for a higher rate of interest, if any payable, in an appropriate forum. The Court did not expressly leave any issue undecided.
Facts
The petitioner, a contractor, was awarded various contract works under a scheme in West Godavari District. After executing the works, final bills were prepared for a sum of Rs.32,47,121/-. The petitioner approached the High Court by way of a writ petition as the respondents had not made the payment. The petitioner contended that the respondents admitted the entitlement to the sum but had failed to make the payment, which was arbitrary and high-handed. The respondents, through the Government Pleader for Irrigation, admitted the claim and stated that the Line of Credit (LOC) pertaining to the contract had not been released. They assured that upon release of the LOC, the bills would be uploaded in the CFMS and payment would be made. The Court considered previous orders of the High Court regarding non-payment of dues.
Key Issues
1. Whether the non-payment of admitted contract dues by the respondents is arbitrary and requires interference by this Court under Article 226 of the Constitution of India? The petitioner argued that the respondents' failure to pay the admitted sum of Rs.32,47,121/- despite acknowledging the petitioner's entitlement was arbitrary and high-handed, necessitating judicial intervention. The petitioner relied on previous orders of the High Court, including a learned Single Judge's judgment in W.P.No.10038 of 2021 and batch, which held such non-payment as arbitrary and requiring prompt clearance. The respondents, represented by the Government Pleader for Irrigation, admitted the petitioner's claim. They submitted that the delay in payment was due to the non-release of the Line of Credit (LOC) for the contract. They assured that upon release of the LOC, the bills would be uploaded in the CFMS, and payment would be processed. The respondents did not explicitly contest the petitioner's argument of arbitrariness but provided a procedural reason for the delay.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.2799 of 2023 ORDER:
The petitioner had been awarded various contract works under the subject scheme in West Godavari District. After execution of the said contract, a final bills were prepared for a sum of Rs.32,47,121/- 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 pet
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