Disposed

M/s. Water User Association (W.U.a.) v. The State of Andhra Pradesh

Andhra Pradesh HC4 Feb 2024WP/3213/2022

Case brief

AI extract

What is this about?

Contractor association sought mandamus for release of Rs.8,52,980/- for completed and certified irrigation protection works. Court held withholding unjustified despite an earlier interim direction to pay, and directed payment with 6% per annum interest within six weeks, leaving higher-rate claims open. Writ petition disposed without costs.

What did the court decide?

Direction to respondents to pay Rs.8,52,980/- with 6% per annum interest within six weeks; no order as to costs.

M/s. Water User Association (W.U.a.)… — Contract and Commercial Disputes | Andhra Pradesh HC (2024)

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IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction)

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MONDAY, THE FIFTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FOUR

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PRESENT

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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

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WRIT PETITION NO: 3213 OF 2022

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Between:

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M/s. Water User Association (W.U.A.), Pasupalli, rep. by its President, Sri M.V.Satya Subbarao, S/o. Sri M. Sriramulu, aged about 54 years, Occ: Business, R/o. H.No.47/1, Veeravallipalem, Mukteswaram, East Godavari District, Andhra Pradesh.

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...PETITIONER

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AND

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The State of Andhra Pradesh, rep. by its Principal Secretary, Irrigation Department, Secretariat, Velagapudi, Amaravathi, Andhra Pradesh.

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The State of Andhra Pradesh, rep. by its Principal Secretary, Finance Department, Secretariat, Velagapudi, Amaravathi, Andhra^Pradesh.

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The District Collector, East Godavari District, Kakinada, East Godavari District, A.P.

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The Executive Engineer, (Irrigation) Godavari Central Division, Dowlaiswaram/Amalapuram, East Godavari District.

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The pay and Account Officer, Works and Projects, Kakinada, East Godavari District, A.P.

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...RESPONDENTS

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Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to pray that this Hon'ble Court for issuance of an appropriate Writ, Order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the respondents in not releasing the payments to the petitioner to a tune of sum of Rs.8,52,980/- towards payment of work executed under the Agreement No.23/2018-19 dated 02.04.2018 under Neeu-Chettu for Protection work to eroded banks on Pasupalli branch Channel in between K.M. 0.000 to 0.400 on both side bank of Pasupalli village Limits of East Godavari District, pursuant to M-Book No.213-GC/14-15, even after certifying^{theworksinM-book} with full satisfaction of authorities and even after issuing Comprehensive Financial Management System (CFMS)/token ref No.2207054-2018 and 275920-

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2019, as arbitrary, illegal, discriminative, in violation of principles of natural justice, violative of the Fundamental Right guaranteed under Articles 14, 19 (l)g and 21 under Constitution of India and consequently direct the Respondents to forthwith release the payment of Rs.8,52,980/- for the works executed by the petitioner along with interest.

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lA NO: 1 OF 2022

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Petition under Section 151 CPC praying that in the^{circumstancesstated} in the affidavit filed in support of the writ petition, the Fligh Court may be pleased to direct the Respondents to pay the Rs.8,52,980/- for the works executed by the petitioner under the Agreement No.23/2018-19, dated 02.04.2018 along with interest.

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Counsel for the Petitioner : SRI SRINIVAS BASAVA Counsel for the Respondent Nos.1 & 4 : GP FOR IRRIGATION^&COMMON AREA DEVELOPMENT

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Counsel for the Respondent Nos.2 & 5 : GP FOR FINANCE^ANDPLANNING

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Counsel for the Respondent No.3 : GP FOR REVENUE

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The Court made the following: ORDER

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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

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WRIT PETITION No.3213 of 2022

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ORDER:

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The petitioner seeks writ of mandamus to declare the^action of the respondents in withholding and not releasing^anamountof Rs.8,52,980/- even after execution of work, as illegal, arbitrary and violative of principles of natural justice and for a consequential direction.

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The petitioner’s case is that, the petitioner has undertaken certain repair works in East Godavari District and successfully completed those works. The net amount payable to the petitioner was concluded at Rs.8,52,980/-. On completion of the agreed works, the respondent authorities did not pay the amount^tilldate. Though the works were completed long back and the default liability period of two years was also completed, still, the respondent authorities have not returned the amount. Hence, the writ petition is preferred seeking a direction to the respondents to pay the amount with interest.

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Heard. No counter is filed by the respondents.

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As can be seCrr, the petitioner’s case is a pitiable^one.The petitioner has successfully completed the agreed works to the

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satisfaction of the authorities. However, the bill amount was withheld and not returned, most importantly, without any reason.

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Though this Court passed an interim order on 08.02.2022 directing the respondents to pay the finalized and approved bill amount as per the M-Book and Quality Control Certificate to the petitioner, within a period of six (06), the same was not paid. It is imperative for public authorities to recognize their responsibility and promptly fulfil contractual obligations by paying the agreedupon amounts to contractors. Failing to do so not only jeopardizes future contractor engagement but also undermines the quality of work delivered. In the present case, the withholding^ofthe bill amount lacks justification. Therefore, it is only fair for the petitioner to receive the payment owed to them, along with interest.

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Hence, writ petition is disposed of, directing the respondent authorities to pay bill amount of Rs.8,52,980/- to the petitioner along with the interest @ 6% per annum, in view of the judgment of the Hon’ble Division Bench of this Court in Writ Appeal^No.724of 2021 and batch dated 12.10.2023, within a period of six (06) weeks from the date of receipt of a copy of this order.

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It would also be open to the petitioner to agitate^hisclaim differential amount/higher rate of interest, if any payable by the respondents, in an appropriate forum

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