M/S Sri Krishna Infra vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted dues by the respondents was arbitrary and required intervention. Following the directions in previous High Court judgments, including a Division Bench decision in Writ Appeal No. 724 of 2021, the Court directed the respondents to release the admitted amount of Rs. 08,68,328/- to the petitioner. Additionally, the Court ordered the payment of interest at the rate of 6% per annum on this amount. The petitioner was also granted the liberty to pursue a claim for a higher rate of interest, if applicable, in an appropriate forum. The Court disposed of the writ petition with these directions, with no order as to costs.
Facts
The petitioner, awarded contract works under a scheme in Krishna District, approached the High Court by way of a writ petition seeking payment of Rs. 08,68,328/- for executed contract works. The petitioner contended that despite the respondents admitting the entitlement to payment, no payment had been made, which was considered arbitrary. The respondents, through the learned Government Pleader, admitted the claim and stated that payment would be made after the release of the Line of Credit (LOC) and uploading of bills in the CFMS portal. The Court referred to its previous orders, including a learned Single Judge's judgment, which held non-payment of dues as arbitrary.
Key Issues
1. Whether the non-payment of admitted dues by the respondents to the petitioner for contract works executed under a scheme is arbitrary and requires the interference of this Court, as contemplated under Article 226 of the Constitution of India? Petitioner's Arguments: The petitioner argued that the respondents admitted the claim of Rs. 08,68,328/- but failed to make the payment, which was arbitrary and high-handed, necessitating judicial intervention. They relied on previous judgments of the High Court that had taken a similar view regarding non-payment of dues. Respondents' Arguments: The respondents, while admitting the petitioner's claim, submitted that the payment was contingent upon the release of the Line of Credit (LOC) and subsequent uploading of bills in the CFMS portal. They assured that payment would be processed promptly after these procedural steps were completed. They did not rely on any specific statutory provisions or precedents but presented factual instructions.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.2503 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.08,68,328/- 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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