Ketha Venkata Ramana Reddy vs. The State Of Ap

Held

The Court disposed of the writ petition at the admission stage, with the consent of both parties. The respondents were directed to release the admitted/legally entitled amount to the petitioner at the earliest, and at any rate, within a period of six weeks from the date of receipt of a copy of the order. The Court noted that it would be open to the petitioner to agitate their claim for interest, if any, payable by the respondents, in an appropriate forum, if they were so advised. The issue of whether the withholding of payment was illegal or arbitrary was not decided on merits, but the payment was directed to be released within a stipulated time. The claim for interest was expressly left open for the petitioner to pursue separately.

Facts

The petitioner, a contractor, filed a writ petition seeking payment for work executed under Agreement No.91/2018-19, amounting to Rs.7,03,392/-, along with 12% GST and interest. The petitioner sought a direction to the respondents (State authorities) to release the outstanding bill amount. The respondents, through their learned standing counsel and Government Pleader, acknowledged the admitted bill amount and stated it would be paid in due course. They referred to a previous order in Writ Petition No.17411 of 2022, where six weeks' time was granted for payment, and requested similar consideration for the present petition. The petitioner's counsel reported no objection to this approach.

Key Issues

1. Whether the respondents' action in withholding payment for the executed work, including GST and interest, is illegal, arbitrary, and violative of constitutional principles (Articles 14, 19(1)(g), 21)? Petitioner's argument: The petitioner contended that the respondents' failure to pay the admitted bill amount for work executed, which includes GST, is illegal and arbitrary, violating their fundamental rights. They sought a direction for immediate payment with interest. Revenue/State's argument: The respondents admitted the bill amount and stated it would be paid. They submitted that the payment process was underway and requested the Court to grant a similar time period for payment as granted in a previous, similar writ petition (W.P.No.17411 of 2022), which was six weeks. They did not explicitly argue on the legality of withholding GST or interest but focused on the timeline for payment.