S V V Rambabu vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted contractual dues was arbitrary. Following its own previous orders, including a learned Single Judge's judgment dated 05.10.2021 in W.P.No.10038 of 2021 and batch, the Court found the respondents' inaction to be arbitrary. The Court directed the respondents to release the admitted amount of Rs.45,00,193/- to the petitioner. Furthermore, in view of a Division Bench judgment of the High Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023, the Court also 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 comply. The Court also clarified that it would be open for the petitioner to pursue a claim for a higher rate of interest, if applicable, in an appropriate forum. No order as to costs was made.
Facts
The petitioner, who was awarded contract works, executed the said works and prepared a final bill for Rs.45,00,193/-. The respondents, however, failed to make the payment. The petitioner approached the High Court by way of a writ petition, contending that the non-payment was arbitrary and high-handed, despite the respondents admitting the entitlement to the sum. The petitioner relied on previous High Court orders that held non-payment of dues as arbitrary. The respondents, through the Government Pleader, admitted the claim but stated that payment was delayed due to the non-release of budget by the Government. They assured that payments would be made soon after the budget release.
Key Issues
1. Whether the non-payment of the admitted contractual dues of Rs.45,00,193/- by the respondents to the petitioner is arbitrary and requires the High Court's interference under Article 226 of the Constitution of India? The petitioner argued that the respondents admitted the petitioner's entitlement to the sum of Rs.45,00,193/-. The petitioner contended that the continued non-payment, despite this admission, was arbitrary and high-handed, necessitating judicial intervention. The petitioner relied on previous orders of the High Court, including a learned Single Judge's order dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which had held such non-payment to be arbitrary and directed prompt clearance of dues. The respondents, while admitting the petitioner's claim, argued that the delay in payment was solely due to the non-release of the budget by the Government. They submitted instructions from the Executive Engineer, Drainage Division, Bhimavaram, dated 06.11.2023, stating that payments would be made once the budget was released.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.12481 of 2023 ORDER:
The petitioner had 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.45,00,193/- 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 peti
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