Dundu Venkata Rama Raju vs. The State Of Ap
Held
The Court held that the non-payment of admitted dues by the respondents was arbitrary, aligning with previous judgments of the Court. The Court directed the respondents to release the principal amount of Rs. 28,17,548/- to the petitioners. Furthermore, the Court directed the payment of interest at the rate of 6% per annum on this amount, referencing a Division Bench judgment in Writ Appeal No.724 of 2021. The payment was to be made within six weeks of the order's receipt. The Court also clarified that it would be open for the petitioners to pursue their claim for a higher rate of interest in an appropriate forum. No order as to costs was made.
Facts
The petitioners were awarded a contract for work under a scheme in West Godavari District. After completing the work, a final bill for Rs. 28,17,548/- was prepared. The petitioners approached the High Court as the respondents had not made the payment. The petitioners contended that the respondents admitted their entitlement to the payment but were arbitrarily withholding it. The respondents, through the learned Government Pleader, admitted the claim and stated that payment was delayed due to a lack of Letter of Credit (LOC). They assured that payment would be made soon after the LOC was released.
Key Issues
1. Whether the non-payment of the admitted contractual dues by the respondents is arbitrary and requires the High Court's interference under its writ jurisdiction, as per the petitioners' contention, relying on previous judgments of this Court including W.P.No.10038 of 2021 dated 05.10.2021. 2. Whether the respondents are liable to pay interest on the delayed payment, and if so, at what rate, considering the petitioners' claim for higher interest and the respondents' submission that payment would be made upon release of LOC. The respondents, while admitting the claim, did not explicitly argue against the payment of interest but indicated a timeline for payment post-LOC release.
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HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.8550 of 2023 ORDER:
The petitioners had been awarded the contract of work(s) under the subject scheme in West Godavari District. After execution of the said contract, a final bill was prepared for a sum of Rs.28,17,548/- as per the sanctioned orders. As the payment of the said amount has not been made by the respondents, the petitioners have approached this Court by way of this writ petition.
It is the contention of the petitioners that even though the respondents admitted that the petitioners are entitled for payment of the aforesaid sum of money, no payment is being made. The petitioners contended 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
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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 cl
The judgment continues below.
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