J Sreenadh Reddy Vs the State of Andhra Pradesh

J SREENADH REDDY, S /O J.NARASA REDDY, AGED ABOUT 45 YEARS, OCC BUSINESS, RESIDENT OF D.NO.3-585, AJANTHA THEATRE ROAD, PILER TOWN AND MANDAL, CHITTOOR DISTRICT.

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...PETITIONER

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AND

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THE STATE OF ANDHRA PRADESH, REP. BY PRINCIPAL SECRETARY, PANCHAYATRAJ SS RURAL DEVELOPMENT, SECRETARIAT BUILDINGS, VELAGAPUDI, AMARAVATHI.

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THE COMMISSIONER, PANCHAYATRAJ AND RURAL DEVELOPMENT,STATE OF ANDHRA PRADESH, TADEPALLI, GUNTUR DISTRICT.

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THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF FINANCE AND PLANNING, SECRETARIAT BUILDINGS, AMARAVATHI.

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THE DISTRICT COLLECTOR PR WING, ANNAMAYYA DISTRICT (CHITTOOR).

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THE EXECUTIVE ENGINEER, PANCHAYAT RAJ, MADANAPALLI, ANNAMAYYA DISTRICT.

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THE GRAMPANCHAYAT, REP. BY ITS PANCHAYAT SECRETARY, PILER, PILER MANDAL, ANNAMAYYA DISTRICT

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...RESPONDENT(S):

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W.P.No.5368 of 2024

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 tomay be pleased to issue a Writ, Order or Direction more particularly one in the nature of Writ of Mandamus declaring the action of the Respondents in withholding the payment an amount of Rs. 1,52,917/-, Rs. 1,31,099/- and Rs. 1,66,748/- respectively total an amount of Rs.4,50,764/vide Measurement Book No. 10011/B/18 even after finalizing the bills payable to the petitioner in relation to the work i.e., Construction of Flat forms and repairs to compound Wall at Weekly Market, Filer - 1st as is illegal, arbitrary and unconstitutional and consequently direct the respondents to consider for payment an amount of Rs. 1,52,917/-, Rs. 1,31,099/- and Rs. 1,66,748/- respectively total an amount of Rs.4,50,764/- along with interest at the rate of 24 percent per annum for the delayed payment to the petitioner in respect of execution of the above mentioned work forthwith and pass such

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IA NO: 1 OF 2024

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to direct the respondents to pay an amount of Rs.1,52,917/-, Rs.1,31,099/- and Rs.1,66,748/- respectively total an amount of Rs.4,50,764/vide Measurement Book No.10011/B/18 to the petitioner in relation to the work i.e., Construction of Flat forms and repairs to compound Wall at Weekly Market, Piler - 1 done by the petitioner, pending disposal of the Writ Petition and pass such

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Counsel for the Petitioner:

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1.VUTUPALLI RAJANNA

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Counsel for the Respondent(S):

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1.GP FOR FINANCE PLANNING

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2.GP FOR PANCHAYAT RAJ RURAL DEV

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3.Mattegunta.Sudhir,Standing Counsel For Z.P.Ps,M.P.Ps,Gram Panchayats

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The Court made the following:

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THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

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WRIT PETITION NO: 5368 OF 2024

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ORDER:

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The petitioner had been awarded the contract of work(s) under the subject scheme in Prakasam District. After execution of the said contract, a final bill was prepared for an amount of Rs.4,50,764/- 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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It is the contention of the petitioner that even though the respondents admitted that the petitioner is entitled for payment of the aforesaid sum of money, no payment is being made. The petitioner contends that such nonpayment 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 Panchayat Secretary, Piler Gram Panchayat, Piler dated 15.08.2025, admitting an amount of Rs.4,50,764/-

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payable to the petitioner and submits that, since the budget was not released by the Government, the bills were not paid to the petitioner. Soon after release of the budget by the Government, the bills 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.4,50,764/- to the petitioner, within a period of three (03) months from the date of receipt of a 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 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 this Court in Writ Appeal 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 claim for either differential amount or higher rate of interest, if any payable by the respondents, in an appropriate forum. There shall be no order as to costs.

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