Vasavik And Company vs. The State Of Andhra Pradesh
Held
The Court held that the non-payment of admitted bills, which were approved and covered by CFMS numbers, is illegal and arbitrary, violating Articles 14 and 21 of the Constitution of India. The respondent authorities have an obligation to pay the admitted bill amount within a reasonable time. The Court found it appropriate to dispose of the writ petition by directing the respondents to pay the admitted bill amount of Rs. 1,04,06,250/- covered by the CFMS number within six weeks from the date of receipt of a copy of the order. The Court did not explicitly mention any issue left undecided.
Facts
The petitioner, a firm, was awarded a work order for supplying HDPE Tarpaulin sheets to various agricultural offices in Krishna District for the financial year 2018-19. The petitioner supplied 8325 sheets. The 4th respondent approved a bill on December 29, 2018, for Rs. 2,08,12,500/-. The non-subsidy amount of Rs. 1,04,06,250/- was paid, but the remaining 50% subsidy amount, excluding GST, remained unpaid. The bills, covered by CFMS Token No. 407533/2019, were returned due to financial closure and were not resubmitted or paid. The petitioner filed a writ petition seeking payment of the outstanding amount.
Key Issues
1. Whether the non-payment of admitted bills, which were approved and covered by CFMS token numbers, is illegal and arbitrary, violating Articles 14 and 21 of the Constitution of India? Petitioner's contention: The petitioner argued that having approved the bills with CFMS token numbers, the non-payment is arbitrary and illegal. They relied on decisions of the Apex Court and the High Court holding that non-payment of admitted bills is illegal and arbitrary, and respondents are obligated to settle such bills within a reasonable time. Revenue's contention: The Finance Department stated that the bills were submitted in 2019 and returned due to the closure of the financial year. They indicated that if the Department resubmits the bills during the current year, covered by CFMS numbers, the Finance Department will process the payments. The Agriculture Department confirmed the supply and the partial payment, stating the balance subsidy amount covered by CFMS numbers was yet to be released.
AI-generated summary — verify with the full judgment below
1
HONOURABLE SRI JUSTICE M. GANGA RAO Writ Petition No.206 of 2022 ORDER: This writ petition is filed to issue an appropriate writ, order or direction in the nature of writ of mandamus declaring the action of the respondents in non-payment of amounts due to the petitioner even after finalizing the bills payable to them in relation to supply of Tarpaulin Sheets in Krishna District as illegal and arbitrary.
The petitioner’s firm was given work order for supply of HDPE Tarpaulin sheets to all the offices of the Assistant Directors and Agricultural Officers in respect of Krishna District during the financial year 2018-19 and accordingly, the petitioner’s firm supplied total number of 8325 Tarpaulin sheets. The 4th respondent approved the bill on 29.12.2018 for a total amount of Rs.2,08,12,500/- and out of which, an amount of Rs.1,04,06,250/- was paid to the petitioner’s company towards to non-subsidy amount and the remaining 50% of the amount towards subsidy, excluding GST is yet to be released. The respondents prepared the bills and submitted the same for payment and the said bills are covered by the CFMS Token No.407533/2019. Due to the financial closu
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