P.Srihari Raju vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of dues for completed work is arbitrary. Citing previous orders of the Court, including a learned Single Judge's judgment in W.P.No.10038 of 2021 and batch, the Court directed the respondents to release the admitted amount of Rs. 45,54,984/- to the petitioner at the earliest, and within a period of eight weeks from the date of receipt of a copy of the order. The Court further held that if the payment is not made within the stipulated period, the petitioner would be entitled to interest at 12% per annum. The Court did not explicitly discuss GST or interest on the disputed portion of the claim, focusing on the release of the admitted amount.
Facts
The petitioner was awarded a contract for the construction of additional classrooms. The original agreement was dated 23.02.2018, with a supplemental agreement dated 25.10.2019. The estimated amount was Rs. 85,00,000/-, and the agreed amount was Rs. 66,47,174/-. The petitioner claims to have completed the work and prepared a final bill for Rs. 53,49,123/-. Despite repeated requests, the respondents have not released the payment. The respondents, represented by the learned Assistant Government Pleader for Finance, admit an amount of Rs. 45,54,984/-. The petitioner is willing to accept this admitted amount.
Key Issues
1. Whether the respondents' action in withholding payment for the completed work is illegal, arbitrary, and violative of the principles of natural justice and constitutional rights (Articles 14, 19(1)(g), and 21)? Petitioner's arguments: The petitioner contends that the non-payment of dues for completed work is arbitrary and illegal. They rely on previous judgments of the High Court, specifically citing a learned Single Judge's order dated 05.10.2021 in W.P.No.10038 of 2021 and batch, which held such non-payment to be arbitrary and requiring prompt clearance. Revenue/State's arguments: The respondents admit a portion of the amount claimed by the petitioner, stating the admitted amount is Rs. 45,54,984/-.
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HON’BLE SRI JUSTICE K.SURESH REDDY
W.P.No. 19217 of 2022
ORDER:-
The petitioner filed the present writ petition with the following prayer:- “Writ or Writs particularly one in the nature Writ of Mandamus or any appropriate writ declaring the action of the respondents in not paying the bill for execution of work vide Circle Agreement No.475/2017-18/DB dt.23/02/2018 and supplemental agreement No 39/2019-20 dt.25/10/2019 awarded by 4th respondent for an amount of Rs.53,68,123/ to the petitioner with 12% GST and interest till to day from the date of completion of work as illegal, arbitrary, violation of principles of natural justice and violative of Article 14, 19(1)(g) and 21 of the Constitution of India, consequently direct the respondents to release the bill amounts for the above work immediately with 12% GST and interest.”
Heard Sri A.Sriram, learned counsel representing Sri K.L.N.Swamy, learned counsel for the petitioner, the learned Government Pleader for social Welfare and learned Assistant Government Pleader for Finance.
The petitioner was awarded a contract work for construction of Additional Class rooms to Government Junior colleg
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