M Venkateswarlu Dora vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted dues by the respondents is arbitrary and requires immediate action. The respondents' reason for delay, the non-availability of a GST number, was acknowledged, but the Court directed the release of the admitted amount. The Court relied on its previous directions in various cases, including a Division Bench judgment in Writ Appeal No.724 of 2021 and batch dated 12.10.2023, which mandates clearing such dues. The Court directed the respondents to release the sum of Rs. 2,45,315/- to the petitioner along with interest at 6% per annum within six weeks. The petitioner was also granted liberty to pursue a claim for a higher rate of interest in an appropriate forum. No issue was expressly left undecided.
Facts
The petitioner was awarded a contract for works in Nellore District and submitted a final bill for Rs. 2,45,315/-. The respondents have not made the payment despite admitting the petitioner's entitlement. The petitioner filed a writ petition seeking payment, contending that the non-payment is arbitrary. The respondents, through the learned Government Pleader, admitted the claim but stated that payment could not be processed due to the absence of a GST number. They assured that payments would be made soon after obtaining the GST number. The Court considered previous judgments on similar non-payment issues.
Key Issues
1. Whether the non-payment of admitted dues by the respondents is arbitrary and warrants interference by this Court under Article 226 of the Constitution of India, as contended by the petitioner? 2. Whether the respondents' contention that non-availability of a GST number is a valid reason for delaying payment, and if so, what is the appropriate course of action? Petitioner's Arguments: The petitioner argued that the respondents admitted the entitlement to the sum of Rs. 2,45,315/- and that the continued non-payment is arbitrary and high-handed, necessitating judicial intervention. They relied on previous orders of the Court, including a Single Judge's order dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held such non-payment as arbitrary. Respondents' Arguments: The learned Government Pleader for Irrigation, while admitting the petitioner's claim, submitted instructions indicating that payment could not be processed due to the non-availability of a GST number. They assured that payments would be made promptly once the GST number was obtained.
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HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.8672 of 2023 ORDER:
The petitioner had been awarded the contract of work(s) under the subject scheme in Nellore District. After execution of the said contract, a final bill was prepared for a sum of Rs.2,45,315/- 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 petit
The judgment continues below.
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