M/s N.V.G Constructions, Vs The State of… — Writ and Judicial Review | Andhra Pradesh HC (2025)

M/s N.V.G Constructions, Vs The State of… — Writ and Judicial Review | Andhra Pradesh HC (2025)

What the court decided

AI extract

Outcome

Direction to the respondents to release Rs.14,35,630/- to the petitioner; where the agreement contains no interest clause, interest @ 6% per annum on the delayed payment (any contractual interest clause otherwise binding), payable if not paid within three months; liberty to pursue higher interest in an appropriate forum; no order as to costs; pending Miscellaneous Petitions stand closed

Issue for consideration

Whether the respondents' withholding of payment of the finalized bill amount of Rs.14,35,630/- despite admitting the petitioner's entitlement is arbitrary and unlawful, warranting a writ of mandamus for payment +1 more

Court's answer

Writ Petition disposed of with a direction to the respondents to release the amount of Rs.14,35,630/- to the petitioner

Ratio / Principle

If there is any subsisting clause in the agreement/work order envisaging payment or non-payment of interest upon any amount due and payable, the same is binding upon both the parties

Key takeaways

In the absence of any clause regarding interest in the agreement, the respondents are directed to release the amount along with interest @ 6% per annum on delayed payment, in view of the judgment of the Hon'ble Division Bench of this Courtratio¶36
Payment with interest, if not paid, to be made within a period of three (03) months from the date of receipt of a copy of the order, following Writ Appeal No.724 of 2021 and batch dated 12.10.2023ratio¶38

Detailed headnote1 paragraphs

Writ Petition No.2772 of 2025 (High Court of Andhra Pradesh at Amaravati, Special Original Jurisdiction; Venkateswarlu Nimmagadda, J.; decided 12.08.2025). M/s N.V.G Constructions, contractor for 'Construction of CC road from KP Road to Kaigal of Theertham GP', Baireddipalle Mandal, Chittoor District (Agreement No.456/2023-24, Dt.29.11.2023), sought a writ of mandamus under Article 226 against the State respondents' withholding of its finalized bills of net Rs.14,35,630/- (gross Rs.15,81,142/-) under FMS No.2024-173538, alleging violation of Articles 14, 16, 19 and 300-A. By written instructions dated 04.08.2025 placed on record by the Government Pleader, the Executive Engineer, PRI Division, Chittoor, admitted the petitioner's entitlement to Rs.14,35,630/-, stating upload of bills to the PAO was in progress. Relying on earlier rulings including W.P.No.10038 of 2021 and batch (decided 05.10.2021), the Court disposed of the writ petition directing release of Rs.14,35,630/-; held that any subsisting interest clause in the agreement/work order binds both parties, and in the absence of such clause directed payment of interest @ 6% per annum on the delayed payment in view of Writ Appeal No.724 of 2021 and batch (Division Bench, decided 12.10.2023), if unpaid within three months; left the petitioner liberty to agitate higher interest in an appropriate forum; made no order as to costs and closed pending Miscellaneous Petitions.

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APHC010050352025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI

[3329]

(Special Original Jurisdiction)

TUESDAY,THE TWELFTH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE

PRESENT

THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

WRIT PETITION NO: 2772/2025

Between:

M/S N.V.G CONSTRUCTIONS,, REP., BY ITS MANAGING PARTNER, K. VISWANATH S/O HANUME GOWDU, AGED ABOUT 38 YEARS, OCC CONTRACTOR, HAVING ITS OFFICE AT D.NO.2-5, 2ND FLOOR, ROOM NO.1, THOTAKANUMA VILLAGE, VENKATAGIRI KOTA MANDAL, CHITTOOR DISTRICT

...PETITIONER

AND

THE STATE OF ANDHRA PRADESH, REPRESENTED BY ITS PRINCIPAL SECRETARY, PANCHAYAT RAJ AND RURAL DEVELOPMENT DEPARTMENT, SECRETARIAT BUILDINGS, VELAGAPUDI, GUNTUR DISTRICT

THE DISTRICT COLLECTOR, CHITTOOR DISTRICT AT CHITTOOR

THE EXECUTIVE ENGINEER, PRI DIVISION, CHITTOOR, CHITTOOR DISTRICT

THE STATE OF ANDHRA PRADESH, REPRESENTED BY ITS PRINCIPAL SECRETARY, FINANCE DEPARTMENT,

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SECRETARIAT BUILDINGS, VELAGAPUDI, GUNTUR DISTRICT

...RESPONDENT(S):

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 topleased to issue a WRIT OF MANDAMUS declaring the action of the Respondents herein, in withholding the payment of bills Net Amount of Rs. 14,35,630/(Gross Rs.15,81,142/-), under the FMS.No.2024-173538 even after finalizing the bills payable to the petitioner in relation to the work i.e., Construction of CC road from KP Road to Kaigal of Theertham GP in Baireddipalle Mandal vide Agreement No.456/2023-24, Dt.29.11.2023 is questioned, as the same is illegal and arbitraiy apart from violative of Articles 14, 16, 19 85 300-A of The Constitution of India and consequently direct the respondents to consider for payment of bills Net Amount of Rs. 14,35,630/- (Gross Rs.15,81,142/-), under the CFMS.No.2024173538 with an interest @24percent per annum for the delayed amount to the petitioner in respect of execution of abovementioned work., forthwith

Counsel for the Petitioner:

1.SURESH KUMAR REDDY KALAVA

Counsel for the Respondent(S):

1.GP FOR PANCHAYAT RAJ RURAL DEV

2.GP FOR FINANCE PLANNING

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THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 2772 of 2025

This Court made the following

ORDER :

The petitioner had been awarded the contract of work(s) under the subject scheme in Chittoor District. After execution of the said contract, a final bill was prepared for a sum of Rs.14,35,630/- as per the sanctioned orders. As the payment of the said amount has not been made by the respondents, the petitioner has approached this Court by way of this writ petition.

2. It is the contention of the petitioner that even though the respondents admitted that the petitioner is entitled for payment of Rs. 14,35,630/- no payment is being made. The petitioner contends that such non-payment of money is clearly arbitrary and high-handed requiring the interference of this Court.

This Court, in various orders, including the judgment of a learned Single Judge of this Court dated 05.10.2021 in W.P.No.10038 of 2021 and batch had taken the view that such non-payment of dues is arbitrary and that such dues need to be cleared by the respondents at the earliest.

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On the other hand, learned Government Pleader placed on record written instructions submitted by the Executive Engineer, PRI Division, Chittoor, dated 04.08.2025, wherein, it is admitted that the petitioner is entitled for an amount of Rs.14,35,630/-. It is further stated that uploading of bills to the PAO is under progress. Soon after the bills were uploaded, the bill amount entitled by the petitioner will be paid to the petitioner.

In view of the facts and circumstances submitted in the affidavit, and the directions of this Court in various cases and after hearing the submissions of learned counsel for the petitioner, this Writ Petition is disposed of with a direction to the respondents to release the amount of Rs.14,35,630/- to the petitioner.

As far as interest component is concerned, if there is any subsisting clause in the agreement/work order envisaging payment or non-payment of interest upon any amount which is due and payable, the same is binding upon both the parties. In the absence of any clause with regard to interest component in the agreement, the respondents are directed to release the amount along with the interest @ 6% per annum on delayed payment, in view of the judgment of the Hon’ble Division Bench of

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this Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023 if not paid, within a period of three (03) months from the date of receipt of a copy of this order. It would also be open to the petitioner to agitate its claim for higher rate of interest and due amount, if any payable by the respondents, in an appropriate forum. There shall be no order as to costs.

Consequently, Miscellaneous Petitions, if any, pending in this Writ Petition shall stand closed.

_____________________________________ VENKATESWARLU NIMMAGADDA,J

12.08.2025 KRK

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THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

71

WRIT PETITION NO: 2772 OF 2025

12.08.2025

krk