Ketha Venkata Ramana Reddy vs. The State Of Ap
Held
The Court held that the non-payment of admitted contractual dues by the respondents was arbitrary. Citing previous orders of the Court, including a Division Bench 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. 25,05,060/- to the petitioner. Additionally, the Court directed the payment of interest at the rate of 6% per annum. The petitioner was also granted the liberty to pursue a claim for a higher rate of interest, if applicable, in an appropriate forum. The Court did not expressly leave any issue undecided.
Facts
The petitioner was awarded a contract for various works in Guntur District, and after execution, a final bill of Rs. 25,05,060/- was prepared. The petitioner approached the High Court as the respondents had not made the payment. The petitioner contended that the non-payment was arbitrary and high-handed, despite the respondents admitting the entitlement to the sum. The respondents, through the learned Government Pleader, stated that the bills were awaiting fund clearance and would be paid upon release of funds by the Government.
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 petitioner's contention? 2. Whether the respondents' contention that payment is contingent on fund clearance is a valid defense against the immediate release of admitted dues? Petitioner's Arguments: The petitioner argued that the non-payment of the admitted sum of Rs. 25,05,060/- was arbitrary and high-handed, necessitating judicial intervention. The petitioner relied on previous orders of the Court, including a learned Single Judge's judgment in W.P.No.10038 of 2021 and batch, which held that such non-payment is arbitrary and requires prompt clearance. Respondents' Arguments: The respondents, through the learned Government Pleader, admitted the petitioner's claim but stated that the bills were awaiting fund clearance. They submitted that payment would be made to the petitioner soon after the release of funds by the Government.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.39901 of 2022 ORDER:
The petitioner had been awarded the contract of various works under subject scheme in Guntur District. After execution of the said contract, a final bill was prepared for a sum of Rs.25,05,060/- 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 the petitio
The judgment continues below.
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