Gundubogula Venkateswara Rao vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted contractual dues by the respondents was arbitrary. Following its previous orders, including the judgment in W.P.No.10038 of 2021 and batch, the Court directed the respondents to release the admitted amount of Rs. 48,70,200/- 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 Court directed the payment of interest at the rate of 6% per annum on the said amount. The respondents were given a period of six weeks from the date of receipt of the order to make the payment. The petitioner was also granted liberty to agitate their claim for a higher rate of interest, if any payable, in an appropriate forum. The Court made no order as to costs.
Facts
The petitioner, awarded a contract for various works in West Godavari District, completed the work and submitted a final bill for Rs. 48,70,200/-. The respondents, the State authorities, failed to make the payment despite admitting the petitioner's entitlement. The petitioner approached the High Court by way of a writ petition, contending that the non-payment was arbitrary and high-handed. The State, represented by the learned Government Pleader for Irrigation, admitted the claim but attributed the delay in payment to a lack of Letter of Credit (LOC). Instructions from the Executive Engineer indicated that payment would be made soon after the release of the LOC.
Key Issues
1. Whether the non-payment of the admitted contractual dues of Rs. 48,70,200/- by the State to the petitioner is arbitrary and warrants interference by this Court under Article 226 of the Constitution of India? The petitioner argued that the non-payment of the admitted sum was arbitrary and high-handed, necessitating judicial intervention. The petitioner relied on previous orders of the High Court, including a learned Single Judge's judgment dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held that non-payment of dues is arbitrary and requires prompt clearance. The respondents, while admitting the petitioner's claim, contended that the delay in payment was due to a lack of Letter of Credit (LOC). They submitted that payment would be processed upon the release of the LOC, as per instructions received from the Executive Engineer, Nidadavole, dated 04.11.2023.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.29354 of 2022 ORDER:
The petitioner had been awarded the contract of various works under subject scheme in West Godavari District. After execution of the said contract, a final bill was prepared for a sum of Rs.48,70,200/- 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 th
The judgment continues below.
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