M/S. Babu Nylon Ropes And Nets vs. The State Of Andhra Pradesh

Held

The Court noted that the bill amount claimed by the petitioner was an admitted bill. Considering the submission from the respondents that budget allotment was being processed and that the dues would be cleared in due course, the Court found it appropriate to dispose of the writ petition. The Court directed the respondents to release the admitted amount to the petitioner within a period of six weeks from the date of receipt of a copy of the order. The Court did not specifically address the claim for interest at 24% or make any findings on the alleged illegality or arbitrariness of the respondents' actions beyond acknowledging the admitted nature of the debt.

Facts

The petitioner, a supplier, filed a writ petition seeking payment of Rs. 8,78,623/- for three invoices issued in September 2018, related to an agreement dated January 2, 2018. The petitioner alleged that the respondents, including the Fisheries Department, illegally withheld the final payment despite several representations. The respondents, through the learned Government Pleader, submitted instructions from the Deputy Director of Fisheries (FAC), Kurnool. These instructions indicated that the Office of the Joint Director for Fisheries had requested budget allotment from the Commissioner of Fisheries to clear the pending dues. The respondents assured that the bills would be cleared once the budget was received from the Head Office.

Key Issues

1. Whether the action of the respondents in withholding the final payment of Rs. 8,78,623/- for the petitioner's invoices is illegal, arbitrary, and violative of the principles of natural justice, as contended by the petitioner? 2. Whether the respondents are liable to pay the outstanding due amounts together with interest at 24% to the petitioner? Petitioner's Contention: The petitioner argued that the respondents' action in withholding the admitted bill amount was illegal, arbitrary, and contrary to natural justice. They sought the release of the outstanding dues with 24% interest. Revenue's Contention: The respondents, through the Government Pleader, submitted that the pending dues were acknowledged and that a request for budget allotment had been made to the Commissioner of Fisheries. They stated that the bills would be cleared upon receipt of the budget from the Head Office.