Ch Chandrasekhar vs. The State Of Andhra Pradesh
Held
The Court held that there was no justification in withholding the Earnest Money Deposit, Withheld Amount, FSD, and GST amounts from the petitioner, even after the completion of the defect liability period. The Court found that the petitioner had completed the works as per the agreements, and these amounts were due. Consequently, the Court directed the respondents to release the Earnest Money Deposit, Withheld Amount, FSD, and GST amounts to the petitioner within a period of four weeks from the date of receipt of a copy of the order. The Court did not leave any issue undecided.
Facts
The petitioner, a contractor, filed a writ petition challenging the respondents' action of not releasing Earnest Money Deposit (EMD), Withheld Amount, FSD, and GST amounts related to works executed in Krishna District. The petitioner contended that the works were completed as per agreements, verified by respondent authorities without defects, and payments for execution were made. However, the aforementioned amounts were not released even after the completion of the defect liability period. The petitioner had repeatedly approached the respondents for these payments. The respondents, through their counsel, stated their readiness to pay the amounts due to the petitioner.
Key Issues
1. Whether the respondents are justified in withholding the Earnest Money Deposit, Withheld Amount, FSD, and GST amounts from the petitioner after the completion of the defect liability period, in light of the executed works being completed without defects and payments for execution being made. Petitioner's contention: The petitioner argued that since the works were completed as per the agreements and verified by the authorities without defects, and the defect liability period had expired, the withholding of EMD, Withheld Amount, FSD, and GST amounts was unjustified. The petitioner sought the release of these amounts. Revenue/State's contention: The learned Government Pleader submitted that the respondents were ready to pay the amounts due to the petitioner.
AI-generated summary — verify with the full judgment below
THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.29031 of 2023 ORDER:
The present writ petition is filed aggrieved by the action of the respondents in not releasing the Earnest Money Deposit, Withheld Amount, FSD and GST amounts, relating to the works executed by the Petitioner.
Learned counsel for the petitioner submits that the petitioner had entered into various agreements with the respondents regarding various works in Krishna District and he completed the works as per the terms of the agreement. Execution of works was entered into measurement books prepared by the respondent authorities without noticing any defects. The amount for execution of works was paid to the petitioner, but the Earnest Money Deposit, Withheld Amount, FSD and GST amounts, relating to the works executed by the Petitioner were not released even after completion of defect liability period. The petitioner had approached the respondents several times for payment of the Earnest Money Deposit, Withheld Amount, FSD and GST amounts. As the respondents have failed to release the said amounts, having no other option, the petitioner preferred this petition for release
The judgment continues below.
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