B. Rama Rao And Co. vs. State Of Telangana

Facts

The Petitioner, P. Rama Rao and Co., entered into an agreement with the 4th Respondent, the Superintending Engineer (Housing), GHMC, for construction work. The Petitioner claims to have completed the work on March 29, 2023. The Respondents (GHMC) withheld an amount of Rs. 7,65,163/- (comprising Rs. 6,48,443/- and Rs. 1,16,720/-) without providing any reasons. The Petitioner sought payment of this outstanding amount, including 18% interest, and submitted several representations, including one dated December 2, 2024, to the 5th Respondent, the Executive Engineer, GHMC. Despite acknowledging the representation, the 5th Respondent failed to act upon it, leading the Petitioner to file the present writ petition seeking a writ of Mandamus to direct the release of the outstanding amount.

Held

The Court noted that the Petitioner had completed the construction work and had made several representations for the release of the outstanding amount of Rs. 7,65,163/-. The Respondents, through their counsel, submitted that the 5th Respondent would consider the Petitioner's representation and dispose of it in accordance with law. In light of this submission, the Court disposed of the writ petition by directing the 5th Respondent to consider the representation dated December 2, 2024. If the 5th Respondent is not inclined to accept the Petitioner's request, they are required to assign specific reasons and pass a reasoned order, communicating a copy of the order to the Petitioner. This exercise is to be completed within eight weeks from the date of receipt of the order. The Court did not decide on the entitlement to interest or the legality of withholding the amount, as the matter was disposed of based on the Respondent's submission to consider the representation.

Key Issues

1. Whether the Petitioner is entitled to the release of the outstanding amount of Rs. 7,65,163/- along with interest at 18% per annum, as per the terms of Agreement No. 01/SE(H)/GHMC/2021-22 dated 11.02.2022, for the completed construction work. 2. Whether the withholding of the said amount by the Respondents without assigning any reasons is arbitrary and illegal. Petitioner's Arguments: The Petitioner argued that they have completed the construction work as per the agreement and are therefore entitled to the withheld payment of Rs. 7,65,163/- along with 18% interest from the due date. They contended that the Respondents' failure to release the payment and provide reasons for withholding it amounts to inaction and illegality. The Petitioner relied on their representations made to the Respondents. Respondents' Arguments: The Respondents, through their standing counsel, submitted that the 5th Respondent would consider the Petitioner's representation and dispose of it in accordance with the law.