M/S. Anjali Publicities vs. The State Of Andhra Pradesh

Held

The Court held that the action of the respondents in not paying the due amount to the petitioner was illegal. The Court noted the concession made by the learned Government Pleader for Tourism that the work was completed by the petitioner and that a sum of Rs.10,32,500/- including GST was due. Based on these facts and the concession, the Court disposed of the writ petition. The Court directed respondents 1 and 2 to pay the due amount of Rs.10,32,500/- to the petitioner within four weeks from the date of the order. The Court further stipulated that if the payment was not made within the stipulated period, the respondents would be liable to pay interest at the rate of 12% per annum on the due amount until its realization by the petitioner. No costs were awarded.

Facts

The petitioner, a firm, was allotted a contract by the 2nd respondent, the Chief Executive Officer of A.P. Tourism Authority, Vijayawada, for designing, fabrication, installation, furnishing, and maintenance of the A.P. Tourism Stall at the India International Travel Mart in Kolkata. The petitioner completed the work as per the work order dated February 18, 2020. Despite submitting bills and making repeated demands, the respondents failed to pay the amount due. The petitioner filed a writ petition seeking a direction for payment of the bill amount with interest. The Government Pleader for Tourism conceded that the work was completed and that a sum of Rs.10,32,500/-, including GST, was due to the petitioner. The Government Pleader requested four weeks' time for payment.

Key Issues

1. Whether the action of the respondents in not paying the money due to the petitioner-firm as per the bills raised by it relating to the contract work done by it is illegal? (Question of law) Petitioner's contention: The petitioner argued that the respondents' failure to pay the bill amount for the completed contract work was illegal and sought a direction for payment with interest. The petitioner relied on the work order and the completion of the work as per specifications. Respondents' contention: The learned Government Pleader for Tourism fairly conceded that the work was allotted to the petitioner, completed as per specifications, and that a sum of Rs.10,32,500/- including GST was due. The respondents requested time for payment.