Ch. Chandrasekhar vs. The State Of Andhra Pradesh
Held
The Court held that there was no justification for the respondents to withhold the Withheld and Earnest Money Deposits, even after the completion of the defect liability period and the work allotted to the petitioner. The Court noted that the respondents had admitted the petitioner's claim and the amount payable. Consequently, the Court directed the respondents to release the withheld amounts, Earnest Money Deposit, and Future Security Deposit to the petitioner within four weeks from the date of receipt of the order. The Court did not specifically address the GST amounts in its final direction, although it was mentioned in the initial claim.
Facts
The petitioner, a contractor, filed a writ petition before the High Court of Andhra Pradesh challenging the respondents' failure to release withheld amounts, GST amounts, Further Security Deposit (FSD), and Earnest Money Deposit (EMD) after the completion of works under Agreement No. 81/2022-23 dated 12.08.2022. The petitioner claimed to have completed the works as per the agreements, with measurements recorded without defects. Despite multiple requests, the respondents had not released the deposit amounts even after the defect liability period had expired. The respondents, through the Government Pleader, admitted the claim and stated that payments would be made upon receipt of budget from the Government.
Key Issues
1. Whether the respondents' action in withholding the petitioner's deposit amounts (Withheld, Earnest Money Deposit, and Future Security Deposit) and GST amounts, despite the completion of works and expiry of the defect liability period, is illegal and arbitrary, warranting a direction for their release? Petitioner's Contention: The petitioner argued that they had completed the works as per the agreements, and measurements were taken without any defects. They contended that the withholding of deposit amounts and GST amounts, even after the defect liability period, was unjustified and sought a direction for their release. Respondents' Contention: The respondents, through the Government Pleader, admitted the petitioner's claim and placed on record written instructions from the Executive Engineer, Drainage Division, Gudivada, acknowledging the amount payable to the petitioner. They submitted that payments would be processed soon after receiving the budget from the Government.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF ANDHRA PRADESH::AMARAVATI (Special Original Jurisdiction) TUESDAY, THE NINETEENTH DAY OF DECEMBER TWO THOUSANDAND TWENTYTHREE PRESENT j THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMi WRIT PETITION NO: 29005 OF 2023 O 3: Between: nL R^fr 74-12-8, Patamata New RTC Colony, FF-8 Radha Krishna Residency Vijayawada, NTR District. ...PETITIONER AND Pradesh, Rep. by its Principal Secretary, Irrigation CAD Department, Secretariat Velagapudi, Amaravati, Guntur District Andhra and Planning Department Government Andhra Pradesh, Secretariat Velagapudi, Amaravati, Guntur District.
The Commissioner, CADA Vijayawada, NTR District
The Executive Engineer, Drainage Division Gudivada, Krishna District. ...RESPONDENTS Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be WmT^nF^MlMnL'i'nc particularly one in the nature of J 1?^ mandamus declaring the action of the respondents in not paying withheld amounts, GST amounts, Further Security Deposit (FSD) amounts and Earnest Money Deposit (EMD) amounts by preparing final bills for the works executed by the petitioner i.e. O and M - D
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