Sri.v.Krishna Reddy Vs the State of Andhra Pradesh

THE STATE OF ANDHRA PRADESH, REP BY ITS PRINCIPAL SECRETARY, ROADS AND BUILDINGS(R AND B) DEPORTMENT SECRETARIAT BUILDING, VELAGAPUDI, AMARAVATHI, GUNTUR.

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THE EXECUTIVE ENGINEERR AND B, ROADS AND BUILDINGS DIVISION, KAVALI,SPSRNELLORE DISTRICT.

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THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY DEPARTMENT OF FINANCE AND PLANNING, SECRETARIAT BUILDINGS, VELAGAPUDI, AMARAVATHI, 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 to issue an appropriate Writ Order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the Respondents in withholding the payments of Rs.77,18,886/- (Seventy Seven Lakhs, Eighteen Thousand Eight Hundred and Eighty Six Rupees only) even after finalizing the bills payable to the petitioner in relation to the works i.e. I. Repairs to Government Polytechnic Collage at Kandukur in S.P.S.R. Nellore District,

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Agreement No. /2023-24, dated 20.01.2024 and pass any other order or orders as this Hon’ble Court may deem fit and proper in the interest of Justice.

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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 may be pleased to direct the respondents to forthwith consider releasing the amounts Rs.77,18,886/- (Seventy Seven Lakhs, Eighteen Thousand Eight Hundred and Eighty Six Rupees only) payable to the petitioner herein, pending disposal of the writ petition and pass such

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Counsel for the Petitioner:

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1.DEVASRI ROSHAN KANCHARLA

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Counsel for the Respondent(S):

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1.GP FOR ROADS BUILDINGS

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2.GP FOR FINANCE PLANNING

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The Court made the following order:-

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The present Writ Petition is filed under Article 226 of Constitution of India, for the following relief:

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“…to issue an appropriate Writ Order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the Respondents in withholding the payments of Rs.77,18,886/- (Seventy Seven Lakhs, Eighteen Thousand Eight Hundred and Eighty Six Rupees only) even after finalizing the bills payable to the petitioner in relation to the works i.e. I. Repairs to Government Polytechnic Collage at Kandukur in S.P.S.R. Nellore District, Agreement No. /2023-24, dated 20.01.2024 and pass any other order or orders …”

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The respondents have issued tender notifications on 01.12.2023 vide Notification No.NIT 22-01/TO/SE(R&B)NLR/2023-24 inviting bids from various contractors. Petitioner herein who submitted tender has been declared as lowest bidder in the tender proceedings for execution of the work i.e., repairs to Government Polytechnic College at Kandukur in S.P.S.R.Nellore District vide agreement No. /2023-24 and the respondents have executed an agreement on 20.01.2024. The petitioner herein has completed the work during the stipulated period of contract i.e., on 30.04.2025 and the respondent authorities have not paid the amount due to the petitioner herein i.e., Rs.77,18,886/-, the present Writ Petition has been filed seeking a direction to the respondents to release the due amount to the petitioner.

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The 2^nd respondent herein i.e., the Executive Engineer (R&B) has filed counter affidavit and admitted the execution of the work by the petitioner and recorded the same for executed quantity of work and final bill for gross amount of Rs.77,18,886/- and net amount of Rs.72,54,989/-. It is further

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stated in the counter affidavit that the details were uploaded in the NIDHI website vide token No.2024-9042604 dated 31.01.2025 but the bill was cancelled due to year end activity at A.P.A.O. due to insufficient budget. It is further stated that a request was made to the Chief Engineer (R&B) for release of budget and the bill will be processed in the NIDHI payment for arranging payment to the Agency/contractor. It is further stated that the petitioner is not entitled for interest pursuant to the order of this Court in W.A.No.791 of 2022 dated 26.04.2022.

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Insofar as the interest component, the respondents contended that the petitioner should approach the appropriate forum, relying on the order of the Division Bench in W.A.791 of 2022 dated 26.04.2022. The Division Bench affirmed the Single Judge’s order, directing the petitioner to seek relief regarding interest from the appropriate forum. In a catena of cases this Court had held that where dispute revolves round questions of fact, the matter ought not be entertained under Article 226 of the Constitution of India.

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In the present case, the respondents have not disputed the payment due to the petitioner for the work executed and the respondents have manifested in their counter affidavit that they will pay the amount to the petitioner and they are unable to the pay due to “Bill waiting for fund clearance”, once the work executed by the petitioner to the respondents is admitted and the payment due to the petitioner is not disputed by the respondents, there was hardly no need for this Court to refer the matter to any

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forum or for arbitration for passing an arbitral award assuming that any condition in the agreement to that extent. Hence, this Court directs the respondents to pay the admitted amount to the petitioner.

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In The D.F.O., South Kheri And Ors. vs Ram Sanehi Singh¹ , the Hon’ble Apex Court held that when a State decides not to pay the dues with mala fide, with ulterior motives or arbitrarily or when the State avoids payment of the dues with mala fide, with ulterior motives, arbitrarily or when the State discriminates, while making payment dues, such a decision of the State not to pay or such an act of the State of not paying its dues cannot be said to be wholly beyond the reach of Article 226, for asking the writ Court to do is to force the State to act in accordance with its constitutional obligation by adhering to the letter and spirit of Articles 14 and 21 of the Constitution of India.

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In view of the above, the present Writ Petition is disposed of with following directions:

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(a) The respondents are directed to clear the due amount to the petitioner within a period of eight (08) weeks from the date of receipt of a copy of this order.

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(b) Sum due to the petitioner would mean, the sum arrived after statutory deductions. If there is any dispute regarding statutory recoveries, the petitioner is at liberty to communicate/interface with the respondents.

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