K Bulleyya vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted dues was arbitrary and required the respondents to clear the petitioner's claim. The Court directed the respondents to release the amount of Rs. 76,43,830/- to the petitioner. Additionally, the Court ordered the payment of interest at the rate of 6% per annum, referencing a Division Bench judgment in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. The payment was to be made within six weeks from the receipt of the order. The Court also clarified that it would be open for the petitioner to pursue a claim for a higher rate of interest in an appropriate forum. No order as to costs was made. The writ petition was disposed of with these directions.
Facts
The petitioner was awarded a contract for works in West Godavari District and completed the work, submitting a final bill for Rs. 76,43,830/-. The respondents failed to make the payment, leading the petitioner to file a writ petition. The petitioner contended that despite the respondents admitting the entitlement to payment, no payment was being made, which was arbitrary. The respondents, through the Government Pleader, admitted the claim and stated that payment would be made after the release of the Letter of Credit (LOC) and uploading the bill on the CFMS portal.
Key Issues
1. Whether the non-payment of the admitted contractual dues of Rs. 76,43,830/- to the petitioner by the respondents is arbitrary and warrants interference by this Court under Article 226 of the Constitution of India? Petitioner's arguments: The petitioner argued that the respondents admitted the claim but failed to make the payment, which constituted arbitrary and high-handed action, necessitating judicial intervention. The petitioner relied on previous orders of the High Court, including a Single Judge's order dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held similar non-payment as arbitrary. Respondents' arguments: The respondents, represented by the Government Pleader, admitted the petitioner's claim. They submitted that the delay in payment was due to the non-release of the LOC for the contract. They assured that upon release of the LOC, the bill would be uploaded on the CFMS portal, and payment would be made thereafter.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.1632 of 2023 ORDER:
The petitioner had been awarded the contract of works under the subject scheme in West Godavari District. After execution of the said contract, a final bill was prepared for a sum of Rs.76,43,830/- 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.
2
On the other hand, learned Government Pleader for Irrigation while admitting about the clai
The judgment continues below.
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