Allowed

M/s. Dwaraka Tirumala Constructions, v. The State of Andhra Pradesh

Andhra Pradesh HC11 Nov 2021WP/20925/2021

Case brief

AI extract

What is this about?

This court disposed of a writ petition challenging non-payment for executed contract work under the SCC scheme. It directed respondents to resubmit bills and pay the amount within ten weeks, imposing 12% annual interest for delay.

What did the court decide?

Direct respondents to resubmit bills and pay admitted amount within 10 weeks with 12% annual interest on delay.

M/s. Dwaraka Tirumala Constructions… — Contract and Commercial Disputes | Andhra Pradesh HC (2021)

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HON'BLE SRI JUSTICE U.DURGA PRASAD RAO

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Writ Petition No.20925 of 2021

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ORDER :

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The petitioner seeks writ of mandamus declaring the action of the respondents in not releasing the payments for the contract work executed by the petitioner for providing construction work BT Road from Kalesh Hotel to Thangellamudi Bridge in 47^th approach road through the Agreement No.176/2018-19 dated 06.09.2018 work for an amount of Rs.23,07,478/- with interest @ 18%, as illegal, arbitrary and for consequential direction.

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2. The petitioner’s case succinctly is thus:

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The petitioner was entrusted with different works of SCSP works which is a Central Government Scheme. In the year 2018-19 financial year petitioner was entrusted with the above mentioned works for a total sum of Rs. Rs.43,30,465/-. As the petitioner was carrying out the works the respondent authorities gave oral instructions to stop the work wherein a part of the work was completed for an amount of Rs.23 lakhs. The contract work is valued at Rs.23,07,478/Petitioner executed the works entrusted to him and respondent authorities admitted the same but they have not released the bill amount.

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Hence the writ petition.

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3. Respondent No.5 filed counter contending that the bills being recommended for payment on 19.03.2019 and the same were pending

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till 29.09.2019 and the bills were cancelled by the Government of Andhra Pradesh (Finance Department) without assigning any reasons for the action. The cancelled bills will be resubmitted to the Government only after guidelines / orders issued by the Municipal Administration Department duly allocating the funds under the said Head of Account for the spillover works/bills. It is further contended that the 4^th respondent vide Circular No:3195855/2021/Q1, dt: 16.07.2021 has issued comprehensive orders to all the Municipalities/Corporations in the State instructing for payment of spill over work bills for the years 2018-19 and 2019-20 under SCC grant from the available General funds of the ULB duly taking approval of the council. It is submitted that in view of instructions of the C&DMA, AP the bills will be placed before the next General Body of Municipal Corporation, Eluru for taking appropriate action for payment of all the pending SCC Grant works bills.

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4. Heard Smt. Marella Radha, learned counsel for the petitioner and learned Government Pleader for Finance and Planning representing respondent 1 and 3 and learned Assistant Government Pleader for Municipal Administration representing 4^th respondent and Sri M. Manohar Reddy, learned Standing Counsel representing respondents 5 to 7.

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5. During the course of hearing, it is brought to the notice of this Court that in similar matters, orders were passed granting suitable time

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to the authorities to pay the bills and the said fact has been admitted by the learned Government Pleader for Finance and Planning. In that view, having regard to the similar orders being passed in W.P.No.16300 of 2019, dated 23.10.2019 and in W.P.No.496 of 2020 dated 13.08.2020 and the works executed by the petitioner are not in dispute, this writ petition is disposed of with a direction to the respondents 6 and 7 to resubmit the bills relating to the petitioner forthwith, in which case respondents 1 and 3 shall consider the same and pass the bills and pay the admitted amount to the petitioner within ten (10) weeks from the date of receipt of a copy of this order, failing which the bills amount shall carry interest @ 12% per annum, till the realization. No costs.

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As a sequel, interlocutory applications, if any, pending for consideration shall stand closed.

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_________________________ U.DURGA PRASAD RAO, J

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11^th November, 2021 krk

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THE HON'BLE SRI JUSTICE U. DURGA PRASAD RAO

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W.P No. 20925 of 2021

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