M/S. Distributory Committeee No. - 1 (Dc - 1) vs. The State Of Andhra Pradesh
Held
The Court held that there was no justification for the respondents to withhold the Earnest Money Deposit, Withheld Amounts, and GST component from the petitioner, especially after the completion of the defect liability period. The Court noted that the petitioner had executed the works as per the agreements and no defects were recorded. The reasoning was based on the principle that once contractual obligations are fulfilled and the stipulated period for defects has passed, the withheld amounts, including the GST component, are due to the contractor. The Court directed the respondents to release the Earnest Money Deposit, Withheld Amounts, and GST component to the petitioner within four weeks from the date of receiving the order. No specific issue was 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 recorded in measurement books by respondent authorities without defects, and payments were made. However, the Earnest Money Deposit (EMD), withheld amounts, and the GST component related to these works were not released even after the defect liability period expired. The petitioner repeatedly approached the respondents for these payments but received no resolution, leading to the filing of the writ petition seeking the release of these outstanding amounts.
Key Issues
1. Whether the respondents are justified in withholding the Earnest Money Deposit, Withheld Amounts, and GST component after the completion of the defect liability period, in light of the petitioner having executed the works as per agreement and no defects being noted. Petitioner's Contention: The petitioner argued that since the works were completed as per the agreement, recorded in measurement books without defects, and the defect liability period had expired, the EMD, withheld amounts, and GST component should be released. The petitioner had made multiple attempts to secure these payments from the respondents. Respondents' Contention: The learned Government Pleader for the respondents submitted that the respondents were ready to pay the amounts due to the petitioner.
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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.26144 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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