Swathi Engineering Company vs. The State Of Ap
Held
The Court held that the non-payment of admitted dues by the respondents was arbitrary and required intervention. Following its previous orders and a Division Bench judgment in Writ Appeal No.724 of 2021 and batch dated 12.10.2023, the Court directed the respondents to release the admitted amount of Rs.39,61,152/- to the petitioner. Additionally, the Court directed the payment of interest at the rate of 6% per annum on the said amount. 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. The writ petition was disposed of with these directions, and there was no order as to costs. The operative direction was to release the payment with interest within six weeks.
Facts
The petitioner, who was awarded contract works in Krishna District, approached the High Court by way of a writ petition as the respondents had not made payment for the executed contract works. The final bills prepared for the works amounted to Rs.39,61,152/-. The petitioner contended that despite the respondents admitting entitlement to the payment, no payment was being made, which was arbitrary. The respondents, through the learned Government Pleader, admitted the claim and stated that payment would be made after the release of the Letter of Credit (LOC) and uploading of bills in the CFMS system. The Court referred to its previous orders and a Division Bench judgment regarding the payment of such dues.
Key Issues
1. Whether the non-payment of admitted dues by the respondents to the petitioner for contract works executed is arbitrary and requires the interference of this Court under Article 226 of the Constitution of India? Petitioner's Arguments: The petitioner argued that the respondents admitted the entitlement to the payment of Rs.39,61,152/- but failed to make the payment, which was arbitrary and high-handed, necessitating judicial intervention. The petitioner relied on previous orders of the Court, including a learned Single Judge's order dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held similar non-payments as arbitrary. 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. The instructions indicated that the LOC for the contract had not yet been released, and upon its release, the bills would be uploaded in the CFMS, followed by payment to the petitioner. The respondents did not raise any specific legal contention against the petitioner's claim for payment.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.3941 of 2023 ORDER:
The petitioner had been awarded various contract works under the subject scheme in Krishna District. After execution of the said contract, a final bills were prepared for a sum of Rs.39,61,152/- 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 petitione
The judgment continues below.
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