N v G Constructions Vs the State of Ap

N V G CONSTRUCTIONS, REP., BY ITS MANAGING PARTNER, K. VISWANATH S/O HANUME GOWDU, AGED ABOUT 38 YEARS, D.NO.2-5, 2ND FLOOR, ROOM NO.L, THOTAKANUMA VILLAGE, VENKATAGIRI KOTA MANDAL, CHITTOOR DISTRICT.

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...PETITIONER

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AND

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THE STATE OF AP, REPRESENTED BY ITS PRINCIPAL SECRETARY, PANCHAYAT RAJ 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 HY 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 for final bill Cross amount Rs. 14,72,274/- even after finalizing the bills payable to the petitioner

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in relation to the work i.e., Construction of Internal CC Roads in Ramapuram ST Colony of Nernipalli CP in V.Kota Mandal vide Agreement No.50/2023-24, Dt. 13.09.2023 is questioned, as the same is illegal and arbitrary apart from violative of Articles 14, 16, 19 85 300-A of The Constitution of India and consequently direct the respondents to consider for payment for Cross amount Rs. 14,72,274/- with an interest 24 percent per annum for the delayed amount to the petitioner in respect of execution of above-mentioned work., forthwith and pass

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IA NO: 1 OF 2025

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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 pleased to DIRECT the respondents to consider for payment for Gross amount Rs. 14,72,274/-with regard to the completion of work i.e., “Construction of Internal CC Roads in Ramapuram ST Colony of Nernipalli GP in V.Kota Mandal” vide Agreement No.50/2023-24, Dt. 13.09.2023” with an interest @24% per annum for the delayed amount to the petitioner, pending disposal of the Writ Petition and pass

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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 REVENUE

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3.GP FOR FINANCE PLANNING

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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:5898 OF 2025

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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.14,72,274/- 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 Rs.13,33,144/- 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 the written instructions dated 05.08.2025 issued by the Executive Engineer, PRI Division, Chittoor, wherein, it is admitted that the petitioner is entitled for an amount of Rs.13,33,144/-. It is further stated that the bills uploaded in the Nidhi portal were waiting for fund clearance. Soon after approval of the same, the bills payable to 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.13,33,144/- 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 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 his 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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06.08.2025 BSP

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62

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THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

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WRIT PETITION NO: 5898 OF 2025