Ketha Venkata Ramana Reddy vs. The State Of Andhra Pradesh

Held

The Court held that the respondents' action in not paying the bill amount to the petitioner was unjust and untenable, given the undisputed execution of the works. While acknowledging the petitioner's claim for GST and interest, the Court decided to grant time to the respondents to make the payment of the principal amount. The Court directed the respondents to arrange for the payment of the due and payable amount to the petitioner, after effecting statutory deductions, as expeditiously as possible, within eight weeks from the date of receipt of the order. The Court also noted that the petitioner was free to raise a claim for the GST and interest component before the appropriate forum if advised. The issue of GST and interest was expressly left undecided by the High Court for adjudication by another forum.

Facts

The petitioner, Ketha Venkata Ramana Reddy, filed a writ petition challenging the inaction of respondent authorities in releasing a total amount of Rs.53,03,675/- for works executed under four agreements dated between June 18, 2022, and June 30, 2022. The petitioner claimed to have completed the works satisfactorily and submitted bills, but faced financial hardship due to non-payment. A counter-affidavit filed by the 6th respondent indicated no dispute regarding the work executed, attributing the delay in payment to the Executive Engineers not uploading bills in the CFMS portal due to a lack of LOC (Letter of Credit).

Key Issues

1. Whether the action of the respondent authorities in not releasing the amount of Rs.53,03,675/- to the petitioner for the execution of works under the specified agreements is illegal and arbitrary, and if so, what consequential directions are necessary? Petitioner's contention: The petitioner argued that the works were completed to the satisfaction of the respondents and that the bills submitted had not been paid. The delay in payment was causing financial distress. The petitioner sought the release of the principal amount along with 12% GST and interest from the date of completion of the respective works. Respondents' contention: The respondents, through their counter-affidavit, did not dispute the execution of the works. The delay was attributed to a procedural issue concerning the uploading of bills in the CFMS portal due to a lack of LOC.