A V R Constructions vs. The State Of Andhra Pradesh
Held
The Court held that there was no justification for the respondents to withhold the EMD and FSD amounts, including the GST component, from the petitioner, especially after the completion of the defect liability period and the works. The Court noted the admission by the respondents regarding the payable EMD amount. Consequently, the Court directed the respondents to release the EMD and FSD amounts due to the petitioner within four weeks of receiving a copy of the order. The Court also clarified that it would be open for the petitioner to pursue their claim for any difference amount in an appropriate forum. No order as to costs was made.
Facts
The petitioner filed a writ petition aggrieved by the respondents' failure to return Earnest Money Deposits (EMD) and Full Security Deposits (FSD), along with the Goods and Services Tax (GST) amount, totaling Rs. 96,794/- and Rs. 60,080/-. The petitioner had entered into agreements for works in Anantapuramu District, completed them as per measurements, and received payment for the work. However, the EMDs and FSDs, including the GST component, were not released even after the defect liability period concluded. The petitioner had approached the respondents multiple times without success, leading to the present petition seeking a direction for the release of these amounts.
Key Issues
1. Whether the respondents are legally justified in withholding the EMD and FSD amounts, including the GST component, from the petitioner after the completion of the works and the defect liability period? Petitioner's contention: The petitioner argued that since the works were completed, payments were made, and the defect liability period had expired, the respondents had no justification to withhold the EMD and FSD amounts along with the GST. They sought a direction for the release of these withheld sums. Respondents' contention: The learned Government Pleader for Irrigation submitted that the respondents were ready to pay the amounts due to the petitioner. Written instructions from the Executive Engineer, Penukonda, were placed on record, admitting that the EMD amount payable to the petitioner was Rs. 83,600/- and that this amount would be paid soon.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.31140 of 2023 ORDER:
The present petition is filed aggrieved by the action of the respondents in not returned the EMD’s and FSD’s along with GST amount i.e., Rs.96,794/- and Rs.60,080/-.
Learned counsel for the petitioner submits that the petitioner has entered into various agreements with the respondents for the works in Anantapuramu District and he completed the work as per the agreements. Execution of work was entered into measurement book prepared by the respondent authorities without noticing any defects. The amount for execution of work was paid to the petitioner, but the EMD’s and FSD’s along with GST amount was not released even after completion of defect liability period. The petitioner has approached the respondents several times for reimbursement of the EMD’s and FSD’s along with GST amount. As the respondents have failed to release the EMD’s and FSD’s along with GST amount, the petitioner is seeking a direction to the respondent authorities for release of EMD’s and FSD’s along with GST amount.
Learned Government Pleader submitted that the respondents are ready to pay the
The judgment continues below.
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