Sri Sri Vigneswara Constructions vs. The State Of Ap

Held

The Court held that the non-payment of admitted dues by the respondents was arbitrary, aligning with its previous pronouncements. The Court acknowledged the respondents' submission regarding the verification process but directed its expeditious completion. The Court's reasoning was based on its prior judgments that such delays in clearing legitimate dues are unacceptable. The ratio decidendi is that government authorities must clear admitted dues promptly and cannot unduly delay payments under the guise of verification, especially when previous judicial pronouncements have established this principle. The Court directed the respondents to complete the verification process within three weeks of receiving the order and to pay the due amount within six weeks thereafter. It further clarified that if verification is not completed within three weeks, payment must be made without further delay. The petitioner was also permitted to pursue a claim for interest in an appropriate forum.

Facts

The petitioner was awarded a contract for the "Neeru-Chettu" programme. After completing the work, the petitioner submitted a final bill for Rs. 84,82,082/-. The respondents have not made the payment despite admitting the petitioner's entitlement. The petitioner filed a writ petition alleging arbitrary and high-handed non-payment. The respondents contended that they were verifying the petitioner's claims and payment would be made after verification.

Key Issues

1. Whether the non-payment of admitted dues to the petitioner by the respondents is arbitrary and requires this Court's interference, as per the petitioner's contention? 2. Whether the respondents' claim of verifying the petitioner's claims justifies the delay in payment, as argued by the respondents? Petitioner's Argument: The petitioner contended that the non-payment of the admitted sum of Rs. 84,82,082/- was arbitrary and high-handed, necessitating judicial intervention. The petitioner relied on previous orders of the Court, including a learned Single Judge's judgment in W.P.No.10038 of 2021 and batch, which held that such non-payment is arbitrary and should be cleared promptly. Revenue/State's Argument: The learned Government Pleader for the respondents submitted that the respondent authorities were in the process of verifying the petitioner's claims and would be in a position to make the payment only after the completion of this verification.