M/S.Water Users Association vs. The State Of Andhra Pradesh
Held
The Court held that there was no justification for the respondents to withhold the Withheld Amount, Earnest Money Deposits, and GST Component from the petitioner, especially after the completion of the defect liability period and the execution of the works. The Court found the respondents' continued withholding of these funds to be inappropriate. Consequently, the Court directed the respondents to release the withheld amounts, earnest money deposits, and GST component due to the petitioner within four weeks of receiving a copy of the order. The Court did not leave any issue undecided.
Facts
The petitioner, a contractor, filed a writ petition challenging the respondents' action of not releasing withheld amounts, earnest money deposits, and the GST component related to works executed in Kurnool District. The petitioner contended that the works were completed as per agreements, verified by measurement books without defects, and the defect liability period had also expired. Despite repeated requests, the respondents failed to release these amounts. The petitioner sought a direction for the release of the withheld funds. The respondents, represented by the Government Pleader, stated their readiness to pay the amounts due.
Key Issues
1. Whether the respondents are justified in withholding the amounts, including the Earnest Money Deposits and GST component, from the petitioner even after the completion of the works and the defect liability period. Petitioner's arguments: The petitioner argued that the works were completed satisfactorily, as evidenced by the measurement books, and the defect liability period had expired. Therefore, the withholding of the amounts was unjustified, and they were entitled to their release. Respondents' arguments: The respondents, through the Government Pleader, indicated their readiness to pay the amounts due to the petitioner, implying no contest to the petitioner's claim for release of funds.
AI-generated summary — verify with the full judgment below
THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION No.26015 of 2023 ORDER:
The present writ petition is filed aggrieved by the action of the respondents in not releasing the Withheld Amount, Earnest Money Deposits and GST Component relating to the works executed by the petitioner.
Learned counsel for the petitioner submits that the petitioner has entered into various agreements with the respondents under various Agreements for the works in Kurnool District and he completed the work as per the agreements. Execution of work was entered into measurement book prepared by the respondent authorities without noticing any defects. The amount for execution of work was paid to the petitioner, but the Withheld Amount, Earnest Money Deposits and GST Component was not released even after completion of defect liability period. The petitioner has approached the respondents several times for reimbursement of the Withheld Amount, Earnest Money Deposits and GST Component. As the respondents have failed to release the Withheld Amount, Earnest Money Deposits and GST Component, the petitioner is seeking a direction to the respondent authorities for release of W
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