M/s R.V.C. Constructions, Vs The State of Andhra Pradesh

M/S R.V.C. CONSTRUCTIONS,, REP., BY ITS MANAGING PARTNER, R.V. CHALAPATHI S/O AREPPA, AGED ABOUT 49 YEARS, OCC CONTRACTOR, HAVING ITS OFFICE AT D,NO.5/41-1, BOMMANAPALLI VILLAGE, GUNDUGALLU POST, GANGAVARAM MANDAL, CHITTOOR DISTRICT

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...PETITIONER

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AND

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

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THE DISTRICT COLLECTOR, CHITTOOR DISTRICT AT CHITTOOR

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THE EXECUTIVE ENGINEER, PRI DIVISION, CHITTOOR, CHITTOOR DISTRICT

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THE STATE OF ANDHRA PRADESH, REPRESENTED BY ITS PRINCIPAL SECRETARY, FINANCE DEPARTMENT, SECRETARIAT BUILDINGS, VELAGAPUDI, GUNTUR DISTRICT

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...RESPONDENT(S):

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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 topleased to issue a WRIT OF MANDAMUS declaring the action of the Respondents herein, in withholding the payment of bills Net Amount of Rs. 15,72,315/(Gross Rs. 17,28,653/-) under the CFMS.No.2024-173622, even after finalizing the bills payable to the petitioner in relation to the work i.e., Construction of CC Road from Dandapalle Road to Kurappalle Cross Road of Mamadugu GP of Gangavaram Mandal vide Agreement No.439/2023-24, Dt.29.11.2023 is questioned, as the same is illegal and arbitrary apart from violative of Articles 14, 16, 19 86 300-A of The Constitution of India and consequently direct the respondents to consider for payment of final bills Net Amount of Rs.15,72,315/- (Gross Rs. 17,28,653/-), under the CFMS.No.2024-173622, with an interest @24percent per annum for the delayed amount to the petitioner in respect of execution of above-mentioned work., forthwith

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Counsel for the Petitioner:

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1.SURESH KUMAR REDDY KALAVA

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Counsel for the Respondent(S):

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1.GP FOR PANCHAYAT RAJ RURAL DEV

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2.GP FOR FINANCE PLANNING

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THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 2811 of 2025

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This Court made the following

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ORDER :

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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.15,72,315/- 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.

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2. It is the contention of the petitioner that even though the respondents admitted that the petitioner is entitled for payment of Rs.15,72,315/- 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.

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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.15,72,315/-. 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.

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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.15,72,315/- to the petitioner.

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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.

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

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_____________________________________ VENKATESWARLU NIMMAGADDA,J

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12.08.2025 KRK

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THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

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