Vetla Satyannarayana vs. The State Of Andhra Pradesh
Held
The Court disposed of the writ petition with specific directions. It acknowledged the petitioner's claim and the respondents' admission of the admitted amount. The Court directed the petitioner to furnish the necessary GST details to the respondents. Upon receipt of these details, the respondents were ordered to release the principal amount of Rs. 2,31,191/- to the petitioner. Furthermore, in line with the Division Bench's judgment in Writ Appeal No.724 of 2021 and batch dated 12.10.2023, the respondents were directed to pay interest at the rate of 6% per annum on the released amount. This payment was to be made within six weeks from the date of receipt of a copy of the order. 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. No order as to costs was made.
Facts
The petitioner, who was awarded contracts for various works in East Godavari District, approached the High Court by way of a writ petition seeking payment of a final bill amounting to Rs. 2,31,191/-. The petitioner contended that despite the respondents admitting entitlement to the payment, it had not been released, which was considered arbitrary. The respondents, through the learned Government Pleader for Irrigation, admitted the claim but stated that payment could not be processed through the CFMS system due to the non-availability of the petitioner's GST particulars. They assured that payment would be made promptly upon receipt of these details.
Key Issues
1. Whether the non-payment of the admitted contractual dues to the petitioner is arbitrary and warrants interference by this Court under Article 226 of the Constitution of India, as argued by the petitioner? 2. Whether the non-availability of GST particulars is a valid reason for the delay in payment of the petitioner's final bill, as contended by the respondents? Petitioner's Contention: The petitioner argued that the non-payment of the admitted sum of Rs. 2,31,191/- was arbitrary and high-handed, requiring judicial intervention. They relied on previous orders of the Court, including a learned Single Judge's order dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held such non-payment as arbitrary and requiring prompt clearance. Respondents' Contention: The respondents, while admitting the petitioner's claim, submitted that the bill could not be uploaded in the CFMS system due to the absence of the petitioner's GST particulars. They stated that payment would be processed once these details were furnished.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.8706 OF 2023 ORDER:
The petitioner had been awarded the contract of various works under various schemes in East Godavari District. After execution of the said contract, a final bill was prepared for a sum of Rs.2,31,191/- 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 pet
The judgment continues below.
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