Dhulipudi Rajesh vs. The State Of Andhra Pradesh
Held
The Court held that the non-release of the admitted bill amount by the Principal Secretary to the Government, Higher Education, was illegal, arbitrary, and contrary to the terms of the agreement. Citing Supreme Court and High Court decisions, including ABL International Limited, Secretary, Irrigation Department v. G.C. Roy, J. Devendar Reddy v. Kakatiya University, and S. Srinivas v. State of Andhra Pradesh, the Court affirmed that withholding admitted bill amounts is violative of Article 14 and 21 of the Constitution. The Court directed the respondents to pay the admitted bill amount of Rs.1,20,69,031/- to the petitioner along with 12% interest per annum from the date of submission of the sixth and final bill (26.11.2018). This payment was to be completed within eight weeks. The Court did not expressly leave any issue undecided.
Facts
The petitioner, a registered contractor, filed a writ petition seeking the release of a final payment of Rs.1,19,12,476/-, including security deposit and GST, along with 24% interest. The petitioner had executed civil works for the construction of ‘Sampradayam Kala Gurukulam at Kallepalli Village’ based on an agreement dated 06.02.2017. The work was completed within the extended period and certified by respondents 3, 5, and 6. While an amount of Rs.3,62,79,588/- was released, a balance of Rs.1,19,12,476/- remained unpaid. The 5th respondent stated that the delay was due to insufficient funds in the P.D. Account and that a request for funds had been made to the Principal Secretary to the Government, Higher Education.
Key Issues
1. Whether the withholding of the admitted bill amount payable to the contractor is illegal, arbitrary, and violative of Article 14 and 21 of the Constitution of India, as argued by the petitioner. 2. Whether the petitioner is entitled to interest on the withheld amount, and if so, at what rate and from when, considering the precedents cited by the petitioner. The petitioner argued that the non-payment of the sixth and final bill amount is arbitrary, illegal, and contrary to the terms of the agreement. The respondents, represented by the 6th respondent's counsel, conceded that the work was completed and accepted, and the balance amount of Rs.1,20,69,031/- could not be paid due to a nil balance in the P.D. Account. They attributed the delay to the non-release of funds by the Government of Andhra Pradesh, asserting no illegality on their part.
Sections Cited
Article 14, Article 21
AI-generated summary — verify with the full judgment below
HON’BLE SRI JUSTICE M. GANGA RAO Writ Petition No.5842 of 2022 ORDER: The petitioner is the contractor, filed this writ petition to issue Writ of Mandamus declaring the action of the respondents No.3, 5 and 6 in not releasing the final amount of Rs.1,19,12,476/- with 24% interest including the security deposit and GST, despite the completion of tendered work long back and consequently direct the respondents to pay balance amount of Rs.1,19,12,476/- including FSD Rs.29,28,361/- and GST Rs.25,65,385/- together with interest 24% per annum from the date of completion of the work.
The petitioner is a registered contractor, executed various civil works in the Government. The petitioner was awarded the work of construction of ‘Sampradayam Kala Gurukulam at Kallepalli Village’ through E-Tender process and an agreement was entered with 6th respondent for execution of the work vide agreement No.01/JNTUK/ED/Sampradayam /Srikakulam/2016- 17 Dt.06.02.2017. As per the agreement, he has to complete the work within a period of 12 months. The petitioner has deposited EMD of Rs.11,30,000/- through Bank Gaurantee dated:06.02.2017. The 4th respondent sa
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