R R Associates Vs the State of Ap — Andhra Pradesh HC (2025) — LawSathi Research

R R Associates Vs the State of Ap — Andhra Pradesh HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Direction to the respondents to pay the bills due to the petitioner for the works executed without further delay, upon the petitioner furnishing a security bond for the amount released, with the entire exercise to be completed within eight weeks; right reserved to the respondents to proceed against the petitioner in accordance with law and to recover amounts if an adverse vigilance report is received. No order as to costs.

Issue for consideration

Whether the Mangalagiri-Tadepalli Municipal Corporation is obliged to release/pay the final bills approved for the works executed by the petitioner-contractor, notwithstanding the pendency of a vigilance enquiry into those works.

Court's answer

The bills due and payable to the petitioner for the works executed must be paid without any further delay; the pendency of the vigilance enquiry, which has no time frame, is not a ground to withhold payment.

Ratio / Principle

If an adverse vigilance report against the works completed by the petitioner is arrived at, the respondents shall have the right to proceed against the petitioner in accordance with law.

Key takeaways

Release of the amounts is conditional on the petitioner submitting a security bond; if amounts are found due payable, the department may take appropriate action for recovery.ratio¶36
The payment exercise directed by the Court shall be completed within eight (08) weeks from the date of receipt of a copy of the order.ratio¶36

Detailed headnote1 paragraphs

Contractor payment — Writ Petition disposed with direction to pay. The petitioner, a contractor who executed works within the limits of the Mangalagiri-Tadepalli Municipal Corporation during 2022-23 and 2024, sought release of final bills approved by the competent authority but unpaid. The Corporation resisted on the ground that a Vigilance Enquiry initiated on 09.08.2024 into the works executed during 2019-2024 was pending with reports awaited. Held: absence of any time frame for completion of the vigilance enquiry is no reason to withhold bills due and payable; payment shall be made without further delay subject to the petitioner furnishing a security bond for the amount released, with liberty to the respondents to proceed in accordance with law and effect recovery if an adverse vigilance report ensues. The exercise to be completed within eight (08) weeks. Writ Petition disposed of; no order as to costs.

[3457]

APHC010237742024

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI

(Special Original Jurisdiction)

THURSDAY,THE TWENTY EIGHTH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE

PRESENT

THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION NO: 11966/2024

Between:

R R ASSOCIATES, REP BY ITS PROPRIETOR SRI RAGHAVA REDDY VIPPALA, S/O CHINNASAMBIRDEDDY, AGED ABOUT 40 YEARS, R/O D.NO. 16-38, NEAR CHINNAMASID, TADIKONDA, GUNTUR DISTRICT

...PETITIONER

AND

THE STATE OF AP, REPRESENTED BY ITS PRINCIPAL SECRETARY MUNICIPAL ADMINISTRATION DEPARTMENT, A.P SECRETARIAT BUILDINGS, VELAGAPUDI, GUNTUR DISTRICT.

THE STATE OF ANDHRA PRADESH, REPRESENTED BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF FINANCE AND PLANNING A.P SECRETARIAT BUILDINGS, VELAGAPUDI, GUNTUR DISTRICT.

THE SPECIAL SECRETARY TO THE GOVERNMENT OF ANDHRA PRADESH AP, FINANCE DEPARTMENT. ROOM NO. 286, 1ST FLOOR, BUILDING NO. 2, A.P. SECRETARIAT, VELAGAPUDI, AMARAVALI - 522 238

THE DIRECTORATE OF WORKS AND ACCOUNTS, REP BY ITS DIRECTOR OF WORKS AND ACCOUNTS FLOOR, C BLOCK, ANJANEYA TOWERS, IBRAHIMPATNAM, KRISHNA DISTRICT.

THE COMMISSIONER AND DIRECTOR, OF MUNICIPAL ADMINISTRATION, ANDHRA PRADESH AT PRIME HILL CREST,

2

VADDESWARAM, TADEPALLI, GUNTUR DISTRICT.

THE ANDHRA PRADESH COMPREHENSIVE FINANCIAL MANAGEMENT SYSTEM CFMS, CEO, NIDHI BHAVAN, APIIC PARK, MANGALAGIRI, GUNTUR DISTRICT

THE MANGALAGIRI TADEPALLI MUNICIPAL CORPORATION, REP. BY ITS COMMISSIONER, MANGALAGIRI, GUNTUR DISTRICT.

THE SUPERINTENDENT ENGINEER, MANGALAGIRI -TADEPALLI MUNICIPAL CORPORATION, MANGALAGIRI, GUNTUR DISTRICT

...RESPONDENT(S):

Counsel for the Petitioner:

1.DEVASRI ROSHAN KANCHARLA

Counsel for the Respondent(S):

1.GP FOR MUNCIPAL ADMN URBAN DEV

2.A S C BOSE (SC FOR MUNICIPAL CORPORATIONS AP)

3.GP FOR FINANCE PLANNING (AP)

The Court made the following:

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ORDER:

Heard learned counsel for the petitioner, learned Assistant Government Pleader for Municipal Administration and Urban Development, learned Assistant Government Pleader for Finance and Planning and learned Standing Counsel for Municipal Corporation.

Learned counsel appearing for the petitioner submits that the writ petition is filed by the contractor, who executed various works within the limits of the Mangalagiri-Tadepalli Municipal Corporation. The petitioner has completed the works to the satisfaction of the Mangalagiri-Tadepalli Municipal Corporation and the final bills were also approved by the competent authority. However, the bills were not released. The petitioner executed the works during the year 2022–23, and also executed some works in the year 2024. It is submitted that the competent authority has approved the bills; however, there has been no payment forthcoming from the Corporation. Aggrieved by the non-payment of the bills by the Corporation, the petitioner has approached this Court by way of the above writ petition.

Learned Standing Counsel appearing for Corporation submits that on 09.08.2024, the Vigilance Enquiry was initiated against the works executed by the petitioner and the Vigilance Enquiry is being conducted on the works which are entrusted to the petitioner. It is also submitted in the counter that the Vigilance Department is taking up verification of the works executed by the petitioner for the year 2019-2024 and the reports were awaited.

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Considering the submissions of learned counsel for the petitioner and learned Standing Counsel for the respondents, this Court is of the considered view that the bills due payable to the petitioner for the works executed by him would have to be paid without any further delay. There is no time frame for completion of the vigilance enquiry. That apart the learned Standing Counsel has not submitted on the methodology adopted by the vigilance committee to verify the works completed about five years ago. In so far as the Vigilance Enquiry is concerned, in the event an adverse report against the works completed by the petitioner is arrived at, the respondents shall have the right to proceed against the petitioner in accordance with law. Further, the petitioner shall submit a security bond for the amount released and in case it is found that they are due payable, the department can take appropriate action for recovery of the amount. It is needless to mention that the said exercise shall be completed within a period of eight (08) weeks from the date of receipt of a copy of this order.

Accordingly, the Writ Petition is disposed off. There shall be no order as to costs.

As a sequel, miscellaneous applications pending, if any, shall stand closed.

___________________ JUSTICE HARINATH.N

Date: 28.08.2025 PNS

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