P.Annapurna, Vs The State of Andhra Pradesh — Writ and Judicial Review | Andhra Pradesh HC (2025)

P.Annapurna, Vs The State of Andhra Pradesh — Writ and Judicial Review | Andhra Pradesh HC (2025)

What the court decided

AI extract

Outcome

No interest awarded. Parties directed to agitate their respective claim with regard to interest and counter claim before an appropriate forum, in accordance with law. No costs. Miscellaneous petitions pending, if any, in the writ petition stand closed.

Issue for consideration

Whether the respondents' non-payment of interest on the admitted bill amounts for the three check dam works executed by the petitioner entitles her to interest at 6% per annum, or whether the interest claim and any counter claim must be agitated before an appropriate forum in accordance with law.

Court's answer

In view of the Division Bench decision in W.A.No.60 of 2025 (which relied on Union of India V. Bright Power Projects (India) (P) Ltd.), the writ petition is disposed of in similar lines, directing the parties to agitate their respective claims with regard to interest and counter claims before an appropriate forum, in accordance with law; no interest is awarded in the writ petition.

Detailed headnote1 paragraphs

Writ petition under Article 226 of the Constitution by the petitioner (awardee of contracts for construction of three check dams across Gonugunta Vagu, local vagu and Kungivaagu near Vavileru Village, Chejarla Mandal, S.P.S.R. Nellore District) seeking interest @ 6% per annum on the admitted bill amounts from the dates of submission of bills till final payment. Admitted principal amounts had been paid only after interim directions in W.P.Nos.5907, 6305 & 6451 of 2022 were enforced through a contempt case, but interest remained unpaid. Placing reliance on the Division Bench decision of this Court in W.A.No.60 of 2025, which rested on the principle in Union of India V. Bright Power Projects (India) (P) Ltd., (2015) 9 SCC 695 (contractual agreement excluding interest binds the parties but does not preclude agitation of claims and counter claims before an appropriate forum), the Court disposed of the writ petition in similar lines, directing the parties to agitate their respective interest claim and counter claim before an appropriate forum in accordance with law. No costs; miscellaneous petitions, if any, closed. Decided by Justice V. Sujatha on 15.09.2025.

APHC010006322024

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI

(Special Original Jurisdiction)

[3333]

MONDAY,THE FIFTEENTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FIVE

PRESENT

THE HONOURABLE SMT JUSTICE V.SUJATHA

WRIT PETITION NO: 541/2024

Between:

P.ANNAPURNA,, W/O SRINIVASULU, AGED ABOUT 44 YEARS, OCC. HOUSEWIFE, CONVENER, J.B.M.V. COMMITTEE, YETURU, R/O VAVILERU (VIL), CHEJARLA MANDAL, S.P.S.R. NELLORE DISTRICT.

...PETITIONER

AND

THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, IRRIGATION DEPARTMENT, SECRETARIAT, VELAGAPUDI, AMARAVATHI, GUNTUR DISTRICT, ANDHRA PRADESH STATE.

THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, FINANCE DEPARTMENT, SECRETARIAT, VELAGAPUDI, AMARAVATHI, GUNTUR DISTRICT, ANDHRA PRADESH STATE.

THE DIRECTOR OF WORKS AND ACCOUNTS, 3RD FLOOR, C-BLOCK, ANJANEYA TOWERS, IBRAHIMPATNAM, KRISHNA DISTRICT-521456.

THE DISTRICT COLLECTOR, NELLORE,

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S.P.S.R.NELLORE DISTRICT

THE SUPERINTENDING ENGINEER, IRRIGATION CIRCLE, NELLORE, S.P.S.R.NELLORE DISTRICT

THE EXECUTIVE ENGINEER, WRD, IRRIGATION DIVISION, ATMAKUR, S.P.S.R.NELLORE DISTRICT.

THE ASSISTANT PAY AND ACCOUNTS OFFICERI, WORKS AND PROJECTS, SOMASILA PROJECT, NELLORE, S.P.S.R.NELLORE 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, order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the Respondents in not paying the interest for the execution of the works 1) Construction of Check Dam across Gonugunta Vagu near Vavileru Village, Chejarla Mandal, S.P.S.R.Nellore District. 2) Construction of check dam across local vagu near Vavileru village, Chejarla Mandal, S.P.S.R.Nellore District. 3) Construction of check Dam across Kungivaagu near Ramaiah fields, Vavileru Village, Chejarla Mandal, S.P.S.R.Nellore District to the Petitioner is arbitrary, illegal, without Jurisdiction and consequentially direct the Respondents to pay the interest @ 6 percent per annum to the Petitioner for the execution of the above said works on the admitted bill amount from the date when the bills were submitted by the Petitioner for payment till the date of final payment and pass

IA NO: 1 OF 2024

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 pleased to direct the Respondents to pay the interest to the Petitioner @6% per

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annum for the execution of the works 1) Construction of Check Dam across Gonugunta Vagu near Vavileru Village, S.P.S.R.Nellore Chejarla Mandal, District. 2) Construction of check dam across local vagu near Vavileru village, Chejarla Mandal, S.P.S.R.Nellore District. 3) Construction of check Dam across Kungivaagu near Ramaiah fields, Vavileru Village, Chejarla Mandal, S.P.S.R.Nellore District on the admitted amount from the date when the bills were submitted by the Petitioner for payment till the date of final payment, pending disposal of the Writ Petition and pass

Counsel for the Petitioner:

1.CH C KRISHNA REDDY

Counsel for the Respondent(S):

1.GP FOR IRRI AND CAD (AP)

2.GP FOR FINANCE PLANNING (AP)

The Court made the following:

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ORDER:-

Challenging the action of the respondents in not paying interest for execution of the works viz., 1) Construction of Check Dam across Gonugunta Vagu near Vavileru Village, Chejarla Mandal, S.P.S.R. Nellore District. 2) Construction of check dam across local vagu near Vavileru village, Chejarla Mandal, S.P.S.R. Nellore District. 3) Construction of check Dam across Kungivaagu near Ramaiah fields, Vavileru Village, Chejarla Mandal, S.P.S.R. Nellore District, the present writ petition is filed.

The case of the petitioner is that she was awarded a contract for execution of works i.e., 1) Construction of Check Dam across Gonugunta Vagu near Vavileru Village, Chejarla Mandal, S.P.S.R. Nellore District. 2) Construction of check dam across

local vagu near Vavileru village, Chejarla Mandal, S.P.S.R. Nellore District. 3) Construction of check Dam across Kungivaagu near Ramaiah fields, Vavileru Village, Chejarla Mandal, S.P.S.R. Nellore District and accordingly, the petitioner duly executed the said works. After completion of the said works, as the admitted amount was not paid, the petitioner filed W.P.Nos.5907, 6305 & 6451 of 2022, wherein this Court granted interim directions, directing the respondents to pay the approved and final bill

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amounts due to the petitioner within a period of six (06) weeks, from the date of receipt of a copy of the order. Since the interim directions were not complied with, the petitioner filed a contempt case before this Court and then the respondents paid the admitted amounts for the execution of the said works, but the respondents have not paid the interest on the admitted amount. Aggrieved by the action of the respondents in not paying the interest for the amounts, the present writ petition came to be filed.

Heard the learned counsel for the petitioner and the learned Assistant Government Pleader for Irrigation.

Under similar circumstances, the Hon’ble Division Bench of this Court in W.A.No.60 of 2025, duly relying upon the principle laid down in “ Union of India V. Bright Power Projects (India) (P) Ltd.,¹ , wherein the Hon’ble Supreme Court has categorically held that when parties to the contract had agreed to the fact that interest would not be awarded on the amount payable to the contractor under the contract, they were bound by their understanding, however, held that this would not preclude the

1 (2015) 9 SCC 695

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rights of the parties to agitate their respective claims and counter claims before an appropriate forum, in accordance with law.

In view of the same, the writ petition is disposed of in similar lines as in W.A.No.60 of 2025 directing the parties to agitate their respective claim with regard to interest and counter claim before an appropriate forum, in accordance with law. No costs.

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

__________________ JUSTICE V.SUJATHA

Dated: 15.09.2025 LSP

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535

THE HONOURABLE SMT JUSTICE V.SUJATHA

WRIT PETITION NO: 541/2024

Dated: 15.09.2025 LSP