Allowed

Ar Constructions v. The State of Andhra Pradesh

Andhra Pradesh HC9 Sept 2026WP/23091/2026

Case brief

AI extract

What is this about?

The petitioner, a contractor, filed a writ petition for non-payment of a sanctioned final bill amounting to Rs. 49,18,078/-. The court noted government acknowledgments of the sum but observed no admission on the interest component. It directed respondents to pay the principal within four months and allowed the petitioner to seek interest separately if opposed.

What did the court decide?

Directed respondents to pay Rs. 49,18,078/- within four months; petitioner directed to submit representation for interest consideration within another four months after the principal payment.

Ar Constructions Vs The State of Andhra Pradesh — Andhra Pradesh HC (2026) — LawSathi Research

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APHC010419372026

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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction)

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THURSDAY, THE 10^th DAY OF SEPTEMBER 2026

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PRESENT

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THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

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WRIT PETITION NO: 23091 OF 2026

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Between:

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AR Constructions, Rep. by its Proprietor P Appalaraju, S/o. P Krishnam Raju, Aged about 56 years, Occ Contractor, R/o. MIG-2A-96, Vinayaka Nagar, Vuda Colony, Visakhapatnam,VisakhapatnamDistrict, Pincode 530044

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...Petitioner

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AND

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The State of Andhra Pradesh, Rep. by its Principal Secretary, Department of Tourism and Culture, Secretariat Buildings, Velagapudi, Amaravathi, Guntur District, Pincode 522238.

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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, Pincode 522238.

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The Managing Director, A.P. Tourism Development Corporation, 5th Floor, Stalin Corporate Office, Auto Nagar, Vijayawada, Krishna District, Pincode 520007.

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The District Collector, Visakhapatnam, Visakhapatnam District, Pincode 530002.

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The Superintendent Engineer, APTDC LTD., Vijayawada, NTR District, Pincode 520007.

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The Executive Engineer, APTDC LTD., Visakhapatnam, Visakhapatnam District, Pincode 530007.

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The District Tourist Information Officer, Regional Tourist Information bureau, Visakhapatnam District, Pincode 530007.

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The General Manager F, A.P. Tourism Development Corporation Limited, 5th Floor, Stalin Corporate Office, Auto Nagar, Vijayawada, Krishna District, Pincode 520007.

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...Respondents

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Counsel for the Petitioner: MODAPOTHULA SUMALATHA

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Counsel for the Respondents: V SRINIVASULA REDDY Counsel for the Respondents: GP FOR TOURISM

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Counsel for the Respondents: GP FOR FINANCE PLANNING

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THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 23091 OF 2026

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The Court made the following order:

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The petitioner had been awarded the contract of work(s) under the subject scheme in Visakhapatnam District. After execution of the said contract, a final bill was prepared for a sum of Rs.49,18,078/- 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.49,18,078/-, 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, Sri Vajrala Srinivasula Reddy, learned Standing Counsel for the Andhra Pradesh Tourism Development Corporation Ltd., has placed on record the written instructions received from the Superintending Engineer, APTDC, Vijayawada admitting gross amount of Rs.49,18,078/-

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payable to the petitioner. The written instructions further indicate that soon after the bill will be uploaded and processed within three months.

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In view of the aforesaid directions of this Court in various cases and after hearing the submissions of learned counsel for the petitioner and learned Standing Counsel for Corporation, this Court deems it appropriate to dispose of this Writ Petition.

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In fact there is no admission by the Respondents either in their Written Instructions regarding the payment of interest component or by oral submissions made by the Government Pleader/Standing Counsel for Respondents. Much less, the interest component as claimed by the petitioner was neither admitted nor approved at their final bills of the respondents. Hence, in the absence of any such admission, this Court is not inclined to grant any specific amount as it admitted under the head of interest. However, the Petitioner is entitled for interest component as per the terms of Agreement if permits and also in the case of delayed payments, as per the ratio laid down by the Division Bench of this Court in W.A.No.724 of 2021.

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Therefore, the respondents are hereby directed to pay admitted amount Rs.49,18,078/- within a period of four (04) months from the date of receipt of copy of this order. As far as interest is concerned, if both parties have agreed regarding the quantum of amount towards interest, the same should be paid along with admitted amount, if not, petitioner is at liberty to submit a representation or a Memo of Statement requesting for payment of interest. If

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petitioner is entitled for the same, after such submission of representation or Memo, the concerned respondent authorities shall consider and pass appropriate orders after providing opportunity of hearing to both parties in case of rejection or reduction of interest amount claimed by the petitioner, within a period of four (04) months thereafter.

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With these observations and directions, this Writ Petition is disposed of. 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

Dt: 10.09.2026 Mnr

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THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

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WRIT PETITION No.23091 OF 2026

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Dt: 10.09.2026

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Mnr

Ar Constructions v. The State of Andhra Pradesh

Case brief

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Ar Constructions v. The State of Andhra Pradesh

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