Bollam Seshagiri Rao vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted contractual dues by the respondents was arbitrary. Following its own previous directions in various cases, including the judgment of a learned Single Judge dated 05.10.2021 in W.P.No.10038 of 2021 and batch, the Court found that such non-payment requires prompt clearance. The Court also considered the judgment of the Division Bench in Writ Appeal No.724 of 2021 and batch dated 12.10.2023 regarding interest. The Court directed the respondents to release the admitted amount of Rs. 42,73,841/- 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 higher interest in an appropriate forum. No order as to costs was made.
Facts
The petitioner, awarded a contract in Srikakulam District, had a final bill prepared for Rs. 42,73,841/- after executing the work. The respondents failed to make the payment. The petitioner approached the High Court, contending that despite the respondents admitting entitlement to the sum, payment was withheld arbitrarily. The respondents, through the learned Government Pleader, admitted the claim but cited a lack of funds as the reason for non-release, assuring payment upon fund availability. Instructions were placed on record from the Executive Engineer, Bhimavaram, dated 12.07.2023.
Key Issues
1. Whether the non-payment of the admitted contractual dues of Rs. 42,73,841/- by the respondents to the petitioner is arbitrary and requires this Court's interference under Article 226 of the Constitution of India? Petitioner's Contention: The petitioner argued that the respondents admitted the entitlement to the payment but failed to release the funds, which constitutes arbitrary and high-handed action, necessitating judicial intervention. The petitioner relied on previous orders of the High 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. Respondents' Contention: The learned Government Pleader for Irrigation admitted the petitioner's claim but stated that the non-payment was due to a lack of funds. Instructions from the Executive Engineer, Bhimavaram, dated 12.07.2023, were placed on record to this effect, assuring that bills would be submitted to the petitioner soon after funds are released.
AI-generated summary — verify with the full judgment below
THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.14488 of 2023 ORDER:
The petitioner had been awarded the contract of work(s) under the subject scheme in Srikakulam District. After execution of the said contract, a final bill was prepared for a sum of Rs.42,73,841/- 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.
On the other hand, learned Government Pleader for Irrigation while admitting about the claim of the petit
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Andhra Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.