G Venkateswara Rao vs. The State Of Andhra Pradesh

Facts

The petitioner, G Venkateswara Rao, was awarded contracts for land levelling works in YSR Jagananna Housing Colonies in Machilipatnam. After executing the works, a final bill was prepared for Rs. 77,18,646/-. A balance amount of Rs. 32,78,632/- remained unpaid to the petitioner. The petitioner approached the High Court by way of a writ petition seeking release of the balance payment, plus GST. The respondents, including the State of Andhra Pradesh and the AP State Housing Corporation, admitted the balance amount payable. The District Head, Housing, had submitted proposals for budget release and sought time to upload the bill on the Nidhi Portal.

Held

The Court held that the non-payment of admitted dues is arbitrary. Citing its own previous orders, including a learned Single Judge's judgment in W.P.No.10038 of 2021 and batch, the Court reiterated that such dues must be cleared promptly. In view of the admitted balance amount and the submissions made, the Court deemed it appropriate to dispose of the writ petition at the admission stage. The Court directed the respondents to pay the admitted balance amount of Rs. 32,78,632/- to the petitioner within a period of four months from the date of receipt of a copy of the order. The issue of GST was not explicitly decided or mentioned in the final directions.

Key Issues

1. Whether the action of the respondents in not releasing the admitted balance payment of Rs. 32,78,632/- to the petitioner is illegal, arbitrary, and violative of Articles 14 and 21 of the Constitution of India, particularly in light of the petitioner's claim for the amount plus GST? Petitioner's contention: The petitioner argued that the non-payment of the admitted balance amount is arbitrary and high-handed, necessitating judicial intervention. The petitioner sought the release of Rs. 80,00,000/- plus GST. Respondents' contention: The learned Standing Counsel for the Housing Corporation placed on record written instructions admitting the balance amount of Rs. 32,78,632/- payable to the petitioner. The respondents indicated that proposals for budget release had been submitted and sought three months' time to upload the bill on the Nidhi Portal.