M Krishnaiah vs. The State Of Andhra Pradesh

Held

The Court noted the submissions of both parties. The respondents indicated their readiness to release the payments upon receipt of the petitioner's GST number. The petitioner agreed to provide the GST number. Considering that the authority intended to pay the amount and the petitioner was willing to fulfill the procedural requirement, the Court found no purpose in keeping the writ petition pending. The Court directed the petitioner to submit the GST number to the concerned authority. Consequently, the respondent-authorities were directed to release the balance amount to the petitioner, after deductions, at the earliest, and at any rate, within three weeks from the date of receipt of a copy of the order. The Court also clarified that it would be open for the petitioner to agitate their claim for interest, if any, in an appropriate forum. No order as to costs was made.

Facts

The petitioner filed a writ petition seeking release of payments totaling Rs. 6,50,864/- for work executed under the MGNREGS + PRR (STC) scheme, along with 18% per annum interest. The work involved the construction of CC roads under three separate agreements, all dated July 31, 2018, with amounts of Rs. 1,93,633/-, Rs. 2,53,455/-, and Rs. 2,03,776/-. The respondents, represented by various learned Assistant Government Pleaders and a Standing Counsel, indicated their willingness to pay the legally entitled amount. However, they noted that the petitioner had not submitted their GST number. The petitioner's counsel agreed to submit the GST number.

Key Issues

1. Whether the respondents' action in withholding payments for the executed work, totaling Rs. 6,50,864/-, is illegal, arbitrary, and contrary to law, violating principles of natural justice? Petitioner's contention: The petitioner argued that the withholding of payments for completed work was illegal and arbitrary, seeking release of the principal amount with 18% interest. The petitioner sought a direction to release the sum of Rs. 6,50,864/- with interest. Revenue/State's contention: The respondents, through the learned Assistant Government Pleader for Panchayat Raj and Rural Development, stated on written instructions that they were ready and willing to pay the legally entitled amount. However, they pointed out that the petitioner had not submitted their GST number, which was a prerequisite for processing the payment.