Rapaka Uday Bhaskar vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted dues by the respondents was arbitrary. Relying on previous judgments of the High Court, the Court directed the respondents to release the admitted amount of Rs. 62,67,190/- to the petitioner. Furthermore, in view of a Division Bench judgment of this Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023, the Court directed that interest at the rate of 6% per annum be paid along with the principal amount. The respondents were given a period of six weeks from the date of receipt of the order to make the payment. The Court also noted that it would be open for the petitioner to agitate their claim for a higher rate of interest and any other due amount in an appropriate forum. No issue was expressly left undecided.
Facts
The petitioner was awarded a contract for works in West Godavari District, and after execution, a final bill of Rs. 66,17,052/- was prepared. The petitioner approached the High Court as the payment was not made. The petitioner contended that the respondents admitted an amount of Rs. 62,67,190/- was payable but still no payment was being made, which was considered arbitrary. The respondents, through written instructions from the Executive Engineer, admitted the amount of Rs. 62,67,190/- payable to the petitioner and stated that payment was delayed due to fund clearance. The respondents assured that payment would be made soon after fund clearance.
Key Issues
1. Whether the non-payment of admitted dues by the respondents is arbitrary and requires the interference of the High Court under its writ jurisdiction, as per the petitioner's contention, relying on previous judgments of this Court including W.P.No.10038 of 2021 and batch dated 05.10.2021. 2. Whether the petitioner is entitled to interest on the delayed payment, and if so, at what rate, considering the respondents' admission of the amount payable and the delay in payment, as per the petitioner's claim for higher interest and the respondents' submission regarding fund clearance. The revenue (respondents) argued that the delay was due to fund clearance and that the admitted amount of Rs. 62,67,190/- would be paid soon.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.26364 of 2022 ORDER:
The petitioner 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.66,17,052/- 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 Rs.62,67,190/-, 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
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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 placed on record the written instructions re
The judgment continues below.
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