Ketha Venkata Ramana Reddy vs. The State Of Andhra Pradesh

Held

The Court held that the respondents' action in not releasing payment for the executed works was unjust and not tenable. While acknowledging the petitioner's entitlement to payment, the Court granted time to the respondents to make the payment. The Court directed the respondents to arrange for the payment of the amount due to the petitioner, after effecting statutory deductions, as expeditiously as possible, within three months from the date of receipt of the order. The Court also noted that the petitioner could raise a claim for the interest component before the appropriate forum if advised. No issue was expressly left undecided.

Facts

The petitioner, Ketha Venkata Ramana Reddy, filed a writ petition challenging the respondents' inaction in paying bills for works executed under seven different agreements, totaling Rs.47,40,004/- plus 12% GST and interest. The petitioner contended that the works were completed, measurements recorded, and bills lawfully due were not released, causing prejudice and irreparable loss. The respondents, through written instructions from the 6th respondent, indicated that payment proposals were submitted for approval and would be cleared upon government release of funds. The Court noted the undisputed execution of works and non-payment of bills.

Key Issues

1. Whether the respondents' action in not paying the bills for the executed works, totaling Rs.47,40,004/- along with 12% GST and interest, is illegal and arbitrary, warranting a direction for payment. The petitioner argued that the works were fully executed and measurements recorded, entitling them to payment. The non-release of bills caused prejudice and irreparable loss. The respondents, through written instructions, stated that payment proposals were submitted for approval and would be cleared once government funds were released. The Court considered the undisputed execution of works and non-payment.