Sri Gollapalli Appa Rao vs. The State Of Andhra Pradesh

Facts

The petitioner, Sri Gollapalli Appa Rao, a contractor, filed a writ petition before the Andhra Pradesh High Court challenging the action of the respondent authorities in withholding and not releasing an admitted bill amount of Rs. 51,40,061/-. This amount was payable for work executed under Agreement No. 08/2023-24, dated 30.05.2023, specifically for Bill No. RBZ-2026-3404244, including applicable GST and other admissible charges. The petitioner sought a direction to release this admitted amount. The respondents, including various departments of the Government of Andhra Pradesh, were arrayed as parties. The matter was heard on 25.09.2026.

Held

The Court disposed of the writ petition. The primary issue was the delay in releasing the admitted bill amount. The respondents, through their counsel, acknowledged that the bill was pending with the Finance Department for release of payment, citing the need for required budget. The Court accepted this submission and directed the respondent-authorities to clear the pending bills payable to the petitioner expeditiously, preferably within a period of six weeks from the date of the order. The Court noted that steps had already been taken for budget allocation. No order as to costs was made. The ratio decidendi is that administrative authorities must adhere to constitutional principles of fairness and timely payment of admitted dues, and courts can direct expeditious release of such payments within a stipulated timeframe when delays are not justified.

Key Issues

1. Whether the action of the respondents in withholding and not releasing the admitted bill amount of Rs. 51,40,061/-, along with applicable GST and other admissible charges, is illegal, arbitrary, unreasonable, unjust, and violative of Articles 14 and 19 of the Constitution of India. Petitioner's Contention: The petitioner argued that the respondents' failure to release the admitted bill amount was illegal and arbitrary, violating their fundamental rights under Articles 14 and 19 of the Constitution. They sought a direction for the immediate release of the payment. Respondents' Contention: The learned Assistant Government Pleader for Agriculture, on written instructions, submitted that the bill was initially uploaded on the NIDHI Portal and was currently pending with the Finance Department for payment release. No other arguments were recorded for the respondents.