Disposed

J Sreenadh Reddy v. the State of Andhra Pradesh

Andhra Pradesh HC12 Aug 2025WP/5415/2024

Case brief

AI extract

What is this about?

Contractor sought payment of a finalized bill of Rs.1,61,685/- for panchayat works withheld for want of budget release. The respondents admitted liability. The Court directed payment within three months, with interest at 6% per annum if no contractual clause governs interest.

What did the court decide?

Respondents directed to pay Rs.1,61,685/- within three months, with 6% per annum interest if no contractual interest clause exists.

J Sreenadh Reddy Vs the State of… — Pension and Retirement Benefits | Andhra Pradesh HC (2025)

NV,J

W.P.No.5415 of 2024

APHC010101522024

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI

¶6

(Special Original Jurisdiction)

¶7

[3329]

¶8

WEDNESDAY,THE THIRTEENTH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE

¶9

PRESENT

¶10

THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

¶11

WRIT PETITION NO: 5415/2024

¶12

Between:

¶13

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

¶14

...PETITIONER

¶15

AND

¶16

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

¶17

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

¶18

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

¶19

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

¶20

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

NV,J

W.P.No.5415 of 2024

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

¶25

...RESPONDENT(S):

¶26

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 Mandamus more partieularly one in the nature of Writ of Mandamus deelaring the action of the Respondents in withholding the payment an amount of Rs. 1,61,685/- vide Measurement Book NO.10007/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 - 2 as is illegal, arbitraiy and unconstitutional and consequently direct the respondents to consider for payment an amount of Rs. 1,61,685/- along with interest at the rate of 24percentage per annum for the delayed payment to the petitioner in respect of execution of the above mentioned work forthwith and pass

¶27

IA NO: 1 OF 2024

¶28

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 an amount of Rs. 1,61,685/- vide Measurement book NO.10007/B/18 to the petitioner in relation to the work i.e., “Construction of Flat forms and repairs to compound Wall at Weekly Market, Filer - 2” done by the petitioner, pending disposal of the Writ Petition and pass

¶29

Counsel for the Petitioner:

¶30

1.VUTUPALLI RAJANNA

¶31

Counsel for the Respondent(S):

¶32

1.GP FOR PANCHAYAT RAJ RURAL DEV

¶33

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

¶34

3.GP FOR FINANCE PLANNING (AP)

¶35

The Court made the following:

¶36

¶37

NV,J W.P.No.5415 of 2024

¶38

THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

¶39

WRIT PETITION NO: 5415 OF 2024

¶40

ORDER:

¶41

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 an amount of Rs.1,61,685/- 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.

¶42

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.

¶43

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.

¶44

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.1,61,685/-

¶45

¶46

NV,J W.P.No.5415 of 2024

¶47

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.

¶48

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.1,61,685/- to the petitioner, within a period of three (03) months from the date of receipt of a copy of this order.

¶49

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.

¶50

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.

NV,J

W.P.No.5415 of 2024