Bollam Seshagiri Rao vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted contractual dues by the respondents was indeed arbitrary and required the Court's intervention. Citing previous judgments of the High Court, including a learned Single Judge's order dated 05.10.2021 and a Division Bench's judgment in Writ Appeal No.724 of 2021 and batch dated 12.10.2023, the Court directed the respondents to release the admitted amount of Rs. 27,84,503/- to the petitioner. Furthermore, the Court ordered the payment of interest at the rate of 6% per annum on this amount. The Court also clarified that it would be open for the petitioner to pursue their 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. No order as to costs was made.
Facts
The petitioners, awarded contract works under a scheme in West Godavari District, approached the High Court by way of a writ petition as their final bill of Rs. 27,84,503/- remained unpaid despite execution of the contract. The petitioners contended that the respondents admitted their entitlement to the sum but failed to make the payment, deeming it arbitrary and high-handed. The respondents, through the learned Government Pleader, admitted the claim and stated that payment was contingent on the release of the Letter of Credit (LOC) pertaining to the contract. Upon release of the LOC, the bills would be uploaded in the CFMS, after which payment would be made.
Key Issues
1. Whether the non-payment of admitted contractual dues by the respondents is arbitrary and warrants interference by this Court, particularly in light of previous High Court judgments on similar matters? Petitioner's Argument: The petitioner argued that the non-payment of the admitted sum of Rs. 27,84,503/- was arbitrary and high-handed, necessitating judicial intervention. They relied on previous orders of the Court, including a learned Single Judge's judgment dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held such non-payment to be arbitrary and requiring prompt clearance. Revenue's Argument: The learned Government Pleader for Irrigation, while admitting the petitioner's claim, submitted that payment was dependent on the release of the Letter of Credit (LOC) for the contract. Upon release of the LOC, the bills would be uploaded in the CFMS, and payment would subsequently be made to the petitioner.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.11299 of 2023 ORDER:
The petitioners have been awarded various contract works under the subject scheme in West Godavari District. After execution of the said contract, a final bill was prepared for a sum of Rs.27,84,503/- 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 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
The judgment continues below.
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