M/S Sri Dattasai Constructions Vs The State of Andhra Pradesh

M/S SRI DATTASAI CONSTRUCTIONS, REP BY ITS MANAGING PARTNER, B.B APPA RAO, S/O PARDESI NAIDU, AGE 61YRS, D.NO. 4-69-17/1, LAW SONS BAY COLONY, VISAKHAPATNAM.

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...PETITIONER

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AND

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THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPALSECRETARY, TRIBAL WELFARE DEPARTMENT, SECRETARIAT, VELAGAPUDI, AMARAVATI, A.P.

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THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, FINANCE AND PLANNING DEPARTMENT, SECRETARIAT, VELAGAPUDI, AMARAVATI, A.P 522237.

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THE DIRECTOR OF TRIBAL WELFARE DEPARTMENT, D.NO. 40-6-22A, KANDHARI HOTEL ROAD, REVENUE COLONY, VIJAYAWADA, A.P.520010

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THE PROJECT OFFICER, ITDA, SEETHAMPETA, SRIKAKULAM DISTRICT (OLD) NOW PARVATHIPURAM

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MANYAM DISTRICT.535502

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THE CHIEF ENGINEER, O/O TRIBAL WELFARE ENGINEERING DEPARTMENT 40-1-86, FORTUNEMURALI PARK ROAD, REVENUE COLONY,VIJAYAWADA A.P 520010

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THE SUPERINTENDING ENGINEER, O/O TRIBAL WELFARE ENGINEERING DEPARTMENT USHODAYA JUNCTION, VISAKHAPATNAM, VISAKHAPATNAM DISTRICT. 530017

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THE EXECUTIVE ENGINEER, O/O. TRIBAL WELFARE ENGINEERING DEPARTMENT SEETHAMPETA, SRIKAKULAM DISTRICT (OLD). PARVATIPURAM MANYAM DISTRICT (NEW). A.P 535502

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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 to issue an order, direction, writ, more particularly Writ of Mandamus declaring the action of the Respondents in not paying the interest on the delayed payments of contract bills @ 6percentage per annum for the amount of Rs.4,32,25,170/- from 01.08.2021 to 16.07.2025 by the respondents is illegal, improper, unjust and contrary to law and consequently direct the respondents to pay the interest @ 6percentage per annum for the amount of Rs.4,32,25,170/- from 01.08.2021 to 16.07.2025 by considering the representation dated 25.09.2025 and 28.11.2025 and pass such other orders.

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IA NO: 1 OF 2026

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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 to direct the respondents to consider the representation dated 25.09.2025 and 28.11.2025 for payment of interest amount @ 6percentage per annum for an amount of Rs.4,32,25,170/- from 01.08.2021 to 16.07.2025pending disposal of the above Writ Petition and pass such other orders.

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Counsel for the Petitioner:

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1.K RAGHU VEER

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Counsel for the Respondent(S):

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1.GP FOR SOCIAL WELFARE

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2.GP FOR FINANCE PLANNING

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The Court made the following:

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THE HON’BLE SRI JUSTICE NYAPATHY VIJAY

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WRIT PETITION No.164 of 2026

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ORDER:

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The present Writ Petition is filed questioning the action of Respondents in not paying the interest on the delayed payments of contract bills @ 6% per annum for the amount of Rs.4,32,25,170/from 01.08.2021 to 16.07.2025 by the Respondents, as illegal and arbitrary.

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The Petitioner herein is a Contractor and has been awarded tender for providing infrastructure to the newly converted Tribal Welfare Boys Hostel to Tribal Welfare Ashram School at Bhamini Village and Mandal, Srikakulam District and the estimated value of the work is Rs.8.75 Crores vide Agreement No.235/2018-19, dated 06.02.2019. Though the Petitioner had completed the work in terms of the Agreement, the balance amount of Rs.4,32,25,170/- was due to the Petitioner. Hence, the Petitioner filed W.P.No.12616 of 2023 before this Court and the same was disposed of on 08.08.2023 with the following directions;

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“6. Accordingly, the present Writ Petition is disposed of directing the respondents to release the legally entitled amount to the petitioner, at the earliest and at any

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rate, within a period of three (03) months from the date of receipt of a copy of this order. It would be open to the petitioner to agitate his claim for interest, if any, payable by the respondents, if he is so advised, in an appropriate forum. There shall be no order as to costs.”

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Pursuant to the Order dated 08.08.2023 passed by this Court in W.P.No.12616 of 2023 the Petitioner was paid the amounts due. Presently, the grievance of the Petitioner is that the Petitioner is entitled for the payment of interest at the rate of 6% per annum on the delayed payments as the Petitioner suffered immense loss due to the delay in payment of bills.

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The learned counsel for the Petitioner would submit that due to the delay in payment of amounts caused huge loss and the Petitioner is entitled for payment of interest at the rate of 6% per annum on the delayed payment and he relied on the Judgments of the Division Bench of this Court in W.A.No.724 of 2021 and batch, dated 12.10.2023. The learned Assistant Government Pleader submitted that the delay in payment of amounts was on account of procedural certifications and budgetary constraints. It is also contended that there would be delays in Government departments as there is a requirement of completion of work and assessment of quality of work at different levels.

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Heard the respective counsel.

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6. In W.A.No.724 of 201 and batch the Division Bench of this

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Court had considered the payment of interest for the delayed payments and the Writ Appeals were disposed of with certain directions. The relevant portion of the Judgment reads as under;

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“(c) In case the works are as per standards, the petitioners would be paid not only the balance amount but also interest calculated at the rate of 6% per annum on the entire amount with effect from the date when the bills were submitted by the petitioners for payment till the date of final payments;

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(b) Such of the petitioners who had executed works much before the period of 01.10.2018 would be paid, if not already paid, the entire amount due and payable to them within a period of one month from today, with interest calculated at the rate of 6% per annum with effect from the date when the bills were submitted by the petitioners for payment till the date of final payments.”

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In view of the above Judgment, the Writ Petition is disposed of with the following directions;

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i) The Respondents are directed to consider grant of interest at the rate of 6% per annum for the balance amount of Rs.4,32,25,170/- in terms of the Division Bench Judgment of this Court in W.A.No.724 of 2021 and batch, dated 12.10.2023 from the date due to the Petitioner till actual payment, as expeditiously as possible;

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