Ghanta Siva Prasad vs. The State Of Andhra Pradesh
Held
The Court held that the writ petition was disposed of by directing the respondents, specifically respondents 4 and 5, to pay the subject bills amounting to Rs. 1,27,94,904/- to the petitioner on or before March 31, 2022. The Court reasoned that while the respondents had admitted the completion of works, the payment process was delayed due to administrative and systemic reasons. To address the petitioner's grievance and ensure timely resolution, a specific timeline for payment was imposed. In the event of default in payment by the stipulated date, the respondents were directed to pay interest at 9% per annum on the outstanding amount until it was realized by the petitioner. No costs were awarded. The Court did not expressly leave any issue undecided.
Facts
The petitioner, a contractor, filed a writ petition seeking a mandamus directing the respondents to pay bills totaling Rs. 1,27,94,904/- for works executed under ten different agreements between October 2019 and March 2020. The petitioner claimed payment of the principal amount along with 12% GST and interest from the date of completion. The respondents, through the 5th respondent's counter-affidavit, substantially admitted the completion of the works. The delay in payment was attributed to the introduction of the Comprehensive Financial Management System (CFMS) in Andhra Pradesh and the pending release of a Letter of Credit (LOC) from the Government. The bills had been uploaded into the CFMS for payment authorization.
Key Issues
1. Whether the Court should issue a writ of mandamus directing the respondents to pay the outstanding bills of Rs. 1,27,94,904/- to the petitioner, including 12% GST and interest, as per the executed agreements. Petitioner's contention: The petitioner argued that the works were completed, and the respondents had substantially admitted this fact. Therefore, the respondents should be directed to make the payments without further delay. Revenue/State's contention: The learned Assistant Government Pleader, in line with the counter-affidavit, stated that the bills were pending due to the implementation of the CFMS and the need for an LOC from the Government. They requested six months' time to make the payment.
AI-generated summary — verify with the full judgment below
HON’BLE SRI JUSTICE M.VENKATA RAMANA WRIT PETITION No.24157 of 2021 ORDER :
Heard Sri K.L.N.Swamy, learned counsel for the petitioner and the learned Assistant Government Pleader for Irrigation and Command Area Development.
This writ petition is filed requiring a direction in the nature of writ of mandamus to make the respondents to pay the bills amount for the works executed by the petitioner under various agreements, namely (1) Agreement No.37/2019-20, dated 30.12.2019, (2) Agreement No.20/2019-20, dated 24.10.2019 (3) Agreement No.21/2019-20, dated 24.10.2019 (4) Agreement No.21/2019-20, dated 24.10.2019 (5) Agreement No.32/2019-20, dated 30.12.2019 (6) Agreement No.54/2019- 20, dated 30.01.2020 (7) Agreement No.72/2019-20, dated 06.03.2020 (8) Agreement No.69/2019-20, dated 20.02.2020 (9) Agreement No.53/2019-20, dated 30.01.2020 and (10) Agreement No.55/2019-20, dated 30.01.2020 and in all for Rs.1,27,94,904/- to the petitioner with 12% GST and interest up-to-date from the date of completion of the respective works.
The petitioner completed all those works which are under category O&M. There is no dispute about this fact, sinc
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