M/s. Somu Constructions, Vs The State of Andhra Pradesh

The State of Andhra Pradesh, Rep. by its Principal^Secretary, The Panchayath Raj Department, Secretariat Building, Velagapudi^Village, Guntur District.

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The Commissioner, Panchayath Raj and Rural Development, 1st Floor, Old Charitasri Hospital Nakkal Road, Suryaraopet, Vijayawada, Krishna District.

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The State of Andhra Pradesh, Rep. by its Principle^Secretary, Finance Department, A.P. Secretariat Building, Velagapudi,^Amaravathi

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The District Collector, Eluru, Eluru District.

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The Superintending Engineer, PRI Circle, Eluru, Eluru District. 6. The Executive Engineer, PRI Division, Eluru, Eluru^District.

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...Respondents

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Petition under Article 226 of the Constitution of India^{isfiledprayingthat} in the circumstances stated in the affidavit filed^{therewith,theHighCourtmay}

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be pleased to issue an appropriate writ, order or direction more particularly ona'•X the nature of Writ of Mandamus declaring the action of the resp9nc[p^ts in not releasing the payments for the^{workexecutedbythe} petSion^’rlunder the Construction of Rural Roads (SCP)^{Grantforthework} Providing internal roads and drains in SC locality^{ofPonangiVillageofEluru} Mandal Eluru District. The Agreement No./2017-18 dated.^{05.06.2017foran} amount of Rs.7,79,970/- with ISpercent per annum interest^{isillegal,arbitrary} and contrary to law, violation of principles of natural^{justiceandconsequently} direct the respondents to release an amount of Rs.7,79,970/-^{withISpercent} Per annum to the petitioner in respect of the execution^{ofaforementioned} work forthwith.

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lA NO: 1 OF 2024

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Petition under Section 151 , CPC is filed praying that in the circumstances stated in the affidayit filed in support^{ofthepetition,theHigh} Court may be pleased to direct the respondent authorities^toreleasean amount of Rs.7,79,970/- with interest at 18% for the^{worksexecutedbythe} petitioner under the Construction of Rural Roads (SCP)^{Grantforthework} Providing internal roads & drains in SC locality of^{PonangiVillageofEluni} Mandal Eluru District the Agreement NO./2017-18 dated.^{05.06.2017foran} amount of Rs.7,79,970/-.

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Counsel for the Petitioner: M/S MARELLA RADHA

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Counsel for the Respondent Nos.1,2,4: GP FOR PANCHAYAT^RAJ RURALDEV(AP)

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Counsel for the Respondent No.3: GP FOR FINANCE PLANNING^(AP) Counsel for the Respondent Nos.5 & 6: SRI M SUDHIR,^SCFORGRAM PANCHAYAT

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The Court made the following order:

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NV,J W.P.No.3419 of 2024

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APHC010059862024

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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI [3329] (Special Original Jurisdiction)

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

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PRESENT

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THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

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WRIT PETITION NO: 3419/2024

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Between:

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1.M/S. SOMU CONSTRUCTIONS,, REP. BY ITS T. SOMU SUNDAR REDDY, S/0. GOPALA REDDY, AGED 49YEARS, R/0. UBALANKA, RAVULAPALEM, EAST GODAVARI DISTRICT.

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...PETITIONER

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AND

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1.THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, THE PANCHAYATH RAJ DEPARTMENT, SECRETARIAT BUILDING, VELAGAPUDI VILLAGE, GUNTUR DISTRICT.

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2.THE COMMISSIONER PANCHAYATH RAJ AND RURAL DEVELOPMENT, 1.ST FLOOR, OLD CHARITASRI HOSPITAL, NAKKAL ROAD, SURYARAOPET, VIJAYAWADA, KRISHNA DISTRICT.

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3.THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPLE SECRETARY, FINANCE DEPARTMENT, A.P. SECRETARIAT BUILDING, VELAGAPUDI, AMARAVATHI

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4.THE DISTRICT COLLECTOR, ELURU, ELURU DISTRICT.

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5.THE SUPERINTENDING ENGINEER, PRI CIRCLE, ELURU, ELURU DISTRICT.

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6.THE EXECUTIVE ENGINEER, PRI DIVISION, ELURU ELURU DISTRICT.

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...RESPONDENT(S):

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Petition under Article 226 of the Constitution of India^{prayingthatinthe} circumstances stated in the affidavit filed therewith,^{theHighCourtmaybe} pleased topleased to issue an appropriate writ, order or direction more particularly one in the nature of Writ of Mandamus^{declaringtheactionofthe} respondents in not releasing the payments for the work^{executedbythe} petitioner under the the Construction of Rural Roads^{(SCP)Grantforthework} Providing internal roads and drains in SC locality^{ofPonangiVillageofEluru} Mandal Eluru District. The Agreement No./2017-18 dated.^{05.06.2017foran} amount of Rs.7,79,970/- with ISpercent per annum interest^{isillegal,arbitrary} and contrary to law, violation of principles of natural^{justiceandconsequently} direct the respondents to release an amount of Rs.7,79,970/-^{withISpercent} Per annum to the petitioner in respect of the execution^{ofaforementioned} work forthwith and to pass

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lA NO: 1 OF 2024

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Petition under Section 151 CPC praying that in the^{circumstancesstated} in the affidavit filed in support of the petition,^{theHighCourtmaybepleased} pleased to direct the respondent authorities to release an amount of Rs.7,79,970/- with interest at 18% for the works executed^{bythepetitioner} under the Construction of Rural Roads (SCP) Grant for^{theworkProviding} internal roads & drains in SC locality of Ponangi Village^{ofEluniMandalEluru} NO./2017-18 dated. 05.06.2017 for an amount of District the Agreement Rs.7,79,970/- and to pass

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Counsel for the Petitioner:

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1.MARELLARADHA

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Counsel for the Respondent(S):

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1.GP FOR PANCHAYAT RAJ RURAL DEV (AP)

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2.GP FOR FINANCE PLANNING (AP)

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The Court made the following:

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NV,J W.P.No.3419 of 2024

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% THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

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WRIT PETITION NO: 3419 OF 2024

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ORDER:

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The petitioner had been awarded the contract of work(s)^underthe subject scheme in Eluru District. After execution of^{thesaidcontract,afinal} bill was prepared for an amount of Rs.7,79,970/- as^{perthesanctioned} orders. As the payment of the said amount has not been^madebythe respondents, the petitioner has approached this Court^{bywayofthiswrit} petition.

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It is the contention of the petitioner that even though^{therespondents} admitted that the petitioner 'is entitled for payment^{oftheaforesaidsumof} money, no payment is being made. The petitioner contends^thatsuchnon 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^{ofalearnedSingle} Judge of this Court dated 05.10.2021 in W.P.No.10038^{of2021andbatchhad} taken the view that such non-payment of dues is arbitrary^{andthatsuchdues} 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,^PRPIU Division, Eluru dated 14.08.2025, admitting an amount of Rs.7,79,970/-^payabletothe

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petitioner and submits that, since the budget was not released by the Government, the bills were not paid to the petitioner.^{Soonafterreleaseofthe} budget by the Government, the bills will be paid to^{thepetitioner.}

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In view of the facts and circumstances submitted in^{theaffidavit,andthe} directions of this Court in various cases and after^{hearingthesubmissionsof} learned counsel for the petitioner, this Writ Petition is disposed of with a direction to the respondents to release the amount^{ofRs.7,79,970/-tothe} petitioner, within a period of three (03) months from^{thedateofreceiptofa} copy of this order.

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As far as interest component is concerned, if there is any subsisting clause in the agreement/work order envisaging payment^{ornon-paymentof} interest upon any amount which is due and payable,^{thesameisbindingupon} both the parties. In the absence of any clause with regard to interest component in the agreement, the respondents are directed^toreleasethe amount along with the interest @ 6% per annum on delayed^{payment,inview} of the judgment of the Hon’ble Division Bench of this^{CourtinWritAppeal} No.724 of 2021 and batch dated 12.10.2023 if not paid.

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It is left open to the petitioner to agitate his^{claimforeitherdifferential} amount or higher rate of interest, if any payable by^{therespondents,} in an appropriate forum. There shall be no order as to costs.

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