M V Subba Rao vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted contractual dues by the respondents was arbitrary. The Court considered the petitioner's submissions and the respondents' explanation regarding the budget. Referencing its own previous orders, including a learned Single Judge's judgment dated 05.10.2021 in W.P.No.10038 of 2021 and batch, the Court found that such non-payment requires prompt action. Furthermore, the Court took into account a judgment of the Division Bench of the High Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023 regarding interest on delayed payments. Consequently, the Court directed the respondents to release the admitted amount of Rs. 2,65,12,411.79 to the petitioner, along with interest at 6% per annum, within six weeks of receiving the order. The petitioner was also granted liberty to pursue a claim for a higher rate of interest in an appropriate forum. The issue of a higher rate of interest was expressly left open for the petitioner to agitate.
Facts
The petitioner was awarded a contract for a scheme in N.T.R. District, and after execution, a final bill of Rs. 2,65,12,411.79 was prepared. The petitioner approached the High Court via a writ petition as the payment was not made by the respondents. The petitioner contended that the respondents admitted the entitlement to the sum but failed to make the payment, which was arbitrary. The respondents, through the Government Pleader for Irrigation, admitted the claim but stated that the budget for the contract had not been released. They assured that upon budget release, the bills would be uploaded to the CFMS portal, and payment would be made promptly.
Key Issues
1. Whether the non-payment of the admitted contractual dues by the respondents is arbitrary and warrants the interference of this Court, as per the petitioner's contention? 2. Whether the respondents' explanation regarding the non-release of budget and subsequent payment process is a valid ground for delaying the payment of admitted dues, as argued by the revenue? Petitioner's Contentions: The petitioner argued that the non-payment of the admitted sum of Rs. 2,65,12,411.79 is arbitrary and high-handed, requiring judicial intervention. They 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 and requiring prompt clearance. Revenue's Contentions: The learned Government Pleader for Irrigation, while admitting the petitioner's claim, submitted a Counter-Affidavit from the 8th respondent. This affidavit stated that the budget for the contract had not been released. Upon release of the budget, the bills would be uploaded to the CFMS portal, and payment would be made immediately thereafter.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.10186 of 2023 ORDER:
The petitioner had been awarded the contract of the work under the subject scheme in N.T.R. District. After execution of the said contract, a final bill was prepared for a sum of Rs.2,65,12,411.79/- respectively 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.
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On the other hand, learned Government Pleader for Irrigation while admittin
The judgment continues below.
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