Ch Chandrasekhar vs. The State Of Andhra Pradesh
Held
The Court held that there was no justification for the respondents to withhold 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 the submissions of both parties and the material on record persuasive. Consequently, the Court directed the respondents to release the withheld amounts to the petitioner. The operative direction was for the respondents to release the Earnest Money Deposit, Withheld Amount, FSD, and GST amounts to the petitioner, specifically referencing agreement No.88/2022-23, dated 18.08.2022, within a period of four weeks from the date of receipt of a copy of the order. No issue was expressly left undecided.
Facts
The petitioner, a contractor, filed a writ petition challenging the respondents' action of withholding 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, and measurements were taken without defects. Payments were made for the work execution, but the aforementioned amounts were not released even after the defect liability period expired. Despite repeated requests, the respondents failed to release these funds, prompting the petitioner to file the writ petition. The respondents, through the learned Government Pleader, 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, contrary to the terms of the agreements? Petitioner's Argument: The petitioner argued that all works were completed as per the agreements, and measurements were taken by the respondent authorities without noting any defects. They contended that the withholding of EMD, Withheld Amount, FSD, and GST amounts was unjustified, especially after the defect liability period had ended, and that the respondents had failed to release these amounts despite repeated requests. Revenue/State's Argument: The learned Government Pleader for the respondents submitted that the respondents were ready to pay the amounts due to the petitioner.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.29040 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
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