Mannava Vamsi Krishna vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of the bill amount, despite the completion of work as per the terms and conditions of the agreement, was illegal and arbitrary. The authorities have an obligation to settle undisputed bills in accordance with the Andhra Pradesh Detailed Standard Specifications. The Court directed the respondents to release the 12% GST amount and 5% security deposit payable to the petitioner within six weeks from the date of receipt of the order. No order as to costs was made.
Facts
The petitioner, a company, filed a writ petition seeking a direction to release the 12% GST amount and 5% security deposit for several construction works. The petitioner contended that the respondent authorities had failed to release these payments despite the completion of the works and initiation of the payment process. The petitioner highlighted that clauses 63 and 69 of the Andhra Pradesh Standard Specifications mandate payment within six months, and the delay was causing severe financial hardship. The respondent's counsel did not dispute the petitioner's claims, stating that payments would be considered when funds become available.
Key Issues
1. Whether the action of the respondent authorities in not releasing the 12% GST amount and 5% security deposit, despite the completion of works and initiation of payment process, is illegal and arbitrary, violating the terms of the agreement and the Andhra Pradesh Standard Specifications? The petitioner argued that the non-release of payments was illegal and arbitrary, causing financial hardship, and that the respondent authorities were obligated to pay within six months as per clauses 63 and 69 of the Andhra Pradesh Standard Specifications. The revenue (respondent) did not dispute the petitioner's submissions and indicated that payments would be processed when funds were available.
Sections Cited
clauses 63 and 69 of the Andhra Pradesh Standard Specifications
AI-generated summary — verify with the full judgment below
THE HON’BLE SRI JUSTICE TARLADA RAJASEKHAR RAO
W.P.No.6785 of 2022 ORDER:-
This Writ Petition is filed under Article 226 of the Constitution of India for the following relief/s: “…to issue a Writ or direction more particularly one in the nature of Writ of Mandamus declaring the action of the 3rd respondent in not releasing the 12% GST amount and 5% security deposit even after payment of the bills, payable to the petitioner in relations to the works 1) Construction of compound wall around SC Burial Ground in Ramanjaneyulu Colony under SC sub plan in Division No.56 2) Providing WBM Roads and construction of CC drains at Pattabhi Seetharam Nagar 9th and 11th lines of Gorantla in Division No.57, 3) Providing WBM Roads and construction of CC drains at Vajja Vengaiah Nagar in Gorantla in Division No.57, 4) Providing WBM roads and construction of CC drains at Kommineni Nagar, Gorantla in Division No.57, 5) Providing WBM Roads and construction of CC drains at Gayatri Nagar, 1st and 2nd lines, Guntur in Division No. 57 with an interest @ 16.5% per annum and pass such other order or orders…”
Heard learned counsel for the petitioner and Sri M. Manohar
The judgment continues below.
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