Katragadda Siva Ramakrishna vs. The State Of Ap
Held
The Court held that the non-payment of admitted dues to the petitioner was arbitrary and required the respondents to release the payment. The Court directed the respondents to release the principal amount of Rs.36,48,821/- to the petitioner. Additionally, the Court ordered the payment of interest at the rate of 6% per annum, referencing a judgment of the Division Bench of the same Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. The payment was to be made within six weeks from the receipt of the order. The Court also clarified 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 costs were awarded.
Facts
The petitioner, who was awarded contract works in West Godavari District, approached the High Court by way of a writ petition seeking payment of Rs.36,48,821/- for executed contract works. The petitioner contended that despite the respondents admitting the entitlement to the sum, payment had not been made, which was considered arbitrary. The respondents, through the learned Government Pleader, admitted the claim and stated that payment would be processed after the release of the Letter of Credit (LOC) and uploading of bills in the CFMS system. The Court considered previous judgments on similar non-payment issues.
Key Issues
1. Whether the non-payment of admitted dues to the petitioner by the respondents is arbitrary and warrants interference by this Court? (Question of law and fact). Petitioner's contention: The petitioner argued that the respondents admitted the entitlement to the sum of Rs.36,48,821/- but failed to make the payment, which constitutes arbitrary and high-handed action, necessitating judicial intervention. The petitioner relied on previous orders of the Court in similar matters, including a learned Single Judge's order dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held non-payment as arbitrary. Revenue/State's contention: The learned Government Pleader for Irrigation admitted the petitioner's claim and submitted instructions from the Executive Engineer, Bhimavaram. It was stated that the LOC for the contract had not yet been released, and upon its release, the bills would be uploaded in the CFMS system, after which payment would be made to the petitioner.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.1359 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.36,48,821/- 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 petit
The judgment continues below.
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