S V V Rambabu vs. The State Of Ap
Held
The Court held that the non-payment of admitted dues was arbitrary and directed the respondents to release the principal amount of Rs.35,95,348/- to the petitioner. The Court further directed the payment of interest at the rate of 6% per annum on this amount, referencing a judgment of the Division Bench of the same Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023. The Court also clarified that it would be open for the petitioner to pursue a claim for a higher rate of interest, if applicable, in an appropriate forum. The respondents were directed to make the payment within six weeks from the date of receipt of the order. The Court did not expressly leave any issue undecided, and the operative directions were to release the principal amount with interest.
Facts
The petitioner, who was awarded contracts for various works in West Godavari District, approached the High Court by way of a writ petition seeking payment of Rs.35,95,348/- for executed work. The petitioner contended that despite the respondents admitting entitlement to the sum, payment was being withheld arbitrarily. The respondents, through the learned Government Pleader, admitted the claim and explained that due to a lack of Letter of Credit (LOC), the bills could not be uploaded in CFMS. They assured that payment would be made upon release of the LOC. The Court considered previous judgments regarding arbitrary non-payment of dues.
Key Issues
1. Whether the non-payment of the admitted contractual dues by the respondents is arbitrary and warrants interference by this Court under Article 226 of the Constitution of India? 2. What is the appropriate rate of interest payable on the delayed payment of dues? Petitioner's Arguments: The petitioner argued that the non-payment of the admitted sum of Rs.35,95,348/- was arbitrary and high-handed, necessitating judicial intervention. The petitioner relied on previous orders of the Court, including a learned Single Judge's judgment in W.P.No.10038 of 2021 and batch, which held such non-payment as arbitrary. Respondents' Arguments: The respondents, while admitting the petitioner's claim, submitted that the delay in payment was due to administrative reasons, specifically the lack of a Letter of Credit (LOC) preventing bill upload in CFMS. They assured that payment would be processed once the LOC was released. The respondents also referred to instructions from the Executive Engineer, Nidadavole, dated 21.11.2023.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.12511 of 2023 ORDER:
The petitioner had been awarded the contract of various works under various schemes in West Godavari District. After execution of the said contract, a final bill was prepared for a sum of Rs.35,95,348/-, 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 th
The judgment continues below.
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