Ketha Venkata Ramana Reddy vs. State Of Ap
Held
The Court held that the non-payment of the admitted amount of Rs.46,83,923/- to the petitioner was arbitrary and required the respondents to release the payment. The Court directed the respondents to release the principal amount along with interest at 6% per annum. This decision was based on the Court's previous pronouncements on arbitrary non-payment of dues and specifically in view of the judgment of the Hon'ble Division Bench of this Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023, which likely addressed the entitlement to interest. The Court also clarified that it would be open for the petitioner to pursue a claim for a higher rate of interest in an appropriate forum. The operative direction was for the respondents to release the specified amount with interest within six weeks from the receipt of the order. No issue was expressly left undecided.
Facts
The petitioner, awarded a contract for works in Krishna District, filed a writ petition seeking payment of Rs.46,83,923/- after the final bill was prepared. The petitioner contended that despite the respondents admitting the entitlement to the sum, payment was withheld, which was arbitrary. The respondents, through the Government Pleader, stated in their counter affidavit that payment was delayed due to a lack of Letter of Credit (LOC) but assured payment upon its release. The Court considered previous judgments of a learned Single Judge and a Division Bench regarding the non-payment of dues and the entitlement to interest.
Key Issues
1. Whether the non-payment of the admitted sum of Rs.46,83,923/- to the petitioner by the respondents is arbitrary and warrants interference by this Court, considering the petitioner's contention of arbitrary and high-handed action. 2. Whether the petitioner is entitled to interest on the delayed payment, and if so, at what rate, in light of the respondents' admission of liability and the cited judicial precedents. Petitioner's arguments: The petitioner argued that the non-payment of the admitted amount was arbitrary and required the Court's intervention. They relied on previous orders of the Court, including a 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 directed prompt clearance of dues. Respondents' arguments: The respondents, represented by the learned Government Pleader for Irrigation, stated that the delay in payment was solely due to the absence of a Letter of Credit (LOC). They assured that the bill amount would be paid soon after the LOC was released. They did not explicitly argue against the entitlement to payment or interest but cited the LOC as the reason for delay.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.40187 of 2022 ORDER:
The petitioner has been awarded the contract of work(s) under the subject scheme in Krishna District. After execution of the said contract, final bill was prepared for a sum of Rs.46,83,923/- 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
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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 filed counter affidavit on behalf of the
The judgment continues below.
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