Distributory Committee No.-I (Dc-1) vs. The State Of Ap
Held
The Court held that there was no justification for the respondents to withhold the Earnest Money Deposit, Withheld Amounts, and the GST component from the petitioner, especially after the completion of the defect liability period. The Court considered the submissions of both parties and the material on record. The ratio decidendi is that statutory dues like EMD, withheld amounts, and GST component, once the contractual obligations and defect liability periods are fulfilled, should be released promptly. The Court directed the respondents to release the Earnest Money Deposit, Withheld Amounts, and the GST component due to the petitioner within four weeks of receiving a copy of the order. No issue was expressly left undecided.
Facts
The petitioner, who had entered into various agreements for works in Kurnool District and completed them as per terms, filed a writ petition. The petitioner's works were executed and measured by respondent authorities without defects, and payments were made. However, the Earnest Money Deposit (EMD), withheld amounts, and the GST component related to these executed works were not released even after the defect liability period expired. The petitioner repeatedly approached the respondents for the release of these amounts. As the respondents failed to release the funds, the petitioner sought their release through this writ petition.
Key Issues
1. Whether the respondents are justified in withholding the Earnest Money Deposit, Withheld Amounts, and the GST component after the completion of the defect liability period for works executed by the petitioner? The petitioner argued that the works were completed as per agreements, measured by the respondents without defects, and payments were made. They contended that withholding EMD, withheld amounts, and GST component beyond the defect liability period is unjustified. The petitioner sought the release of these amounts. The respondents, through the learned Government Pleader, submitted that they are ready to pay the amounts due to the petitioner, indicating no dispute on the liability to pay.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.26112 of 2023 ORDER:
The present writ petition is filed aggrieved by the action of the respondents in not releasing the Earnest Money Deposit, Withheld Amounts and also GST component, relating to the works executed by the Petitioner.
Learned counsel for the petitioner submits that the petitioner had entered into various agreements with the respondents regarding various works in Kurnool District and he completed the works as per the terms of the agreement. Execution of works were entered into measurement books prepared by the respondent authorities without noticing any defects. The amount for execution of works was paid to the petitioner, but the Earnest Money Deposit, Withheld amounts and also GST component, relating to the works executed by the Petitioner were not released even after completion of defect liability period. The petitioner had approached the respondents several times for payment of the Earnest Money Deposit, Withheld Amounts and also GST component. As the respondents have failed to release the said amounts, having no other option, the petitioner preferred this petition fo
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