Bharath Enterprises (Surgicals) Vs the State… — Writ and Judicial Review | Andhra Pradesh HC (2026)

Bharath Enterprises (Surgicals) Vs the State… — Writ and Judicial Review | Andhra Pradesh HC (2026)

What the court decided

AI extract

Outcome

Direction to the respondents to release Rs.16,99,200/- to the petitioner within three months, together with interest @ 6% per annum on the delayed payment where the agreement/work order contains no interest clause (any existing interest clause being binding); liberty reserved to the petitioner to pursue a higher interest claim in an appropriate forum; no order as to costs; pending miscellaneous petitions closed.

Issue for consideration

Whether the respondents' non-payment of the outstanding amount due to the petitioner for supply of surgical equipment is illegal and arbitrary, warranting a direction to pay. +1 more

Court's answer

The writ petition is disposed of with a direction to the respondents to release the amount of Rs.16,99,200/- to the petitioner.

Ratio / Principle

Any subsisting interest clause in the agreement/work order is binding on both parties; in the absence of such a clause, the respondents are directed to pay interest @ 6% per annum on the delayed payment, following the Division Bench judgment in Writ Appeal No.724 of 2021 and batch dated 12.10.2023, with payment to be made within three months; the petitioner remains free to agitate a higher rate of interest in an appropriate forum.

Detailed headnote1 paragraphs

Andhra Pradesh High Court (Venkateswarlu Nimmagadda, J.) disposed of a writ petition under Article 226 filed by Bharath Enterprises (Surgicals) through its proprietor seeking payment of Rs. 16,99,200/- outstanding for supply of surgical equipment for 20 PHCs in Srikakulam District procured through the District Purchase Committee; the final bill stood at Rs. 21,99,208/-, of which Rs. 5,00,000/- had been paid. The Court directed the respondents to release Rs. 16,99,200/- within three months, with interest @ 6% per annum on the delayed payment where the agreement/work order contains no interest clause, relying on the Division Bench judgment in Writ Appeal No. 724 of 2021 and batch dated 12.10.2023; any subsisting interest clause was held binding on both parties; the petitioner was left free to agitate a higher rate of interest in an appropriate forum; miscellaneous petitions, if any, were closed and there was no order as to costs.

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APHC010514942024

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI

(Special Original Jurisdiction)

[3329]

TUESDAY,THE THIRD DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX

PRESENT

THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 26792/2024

Between:

BHARATH ENTERPRISES (SURGICALS), D. NO. 5,HARITHA SAPTHAGIRI PLAZA, 0PP. KGH DOWN, MHARANIPETA, VISAKAHAPATNAM-530002 REP. BY ITS PROPRIETOR, RAGHU PILLALAMARRI S/O. SRI SATHAIAH, AGED ABOUT 53 YEARS, R/O. FLAT NO.S2, JAGAN KRISHNA APARTMENTS, DASPALLA HILLS, VISAKHAPATNAM - 530003.

...PETITIONER

AND

THE STATE OF AP, REP BY ITS PRINCIPAL SECRETARY, HEALTH, MEDICAL AND FAMILY WELFARE DEPARTMENT, SECRETARIAT BUILDINGS, VELAGAPUDI VILLAGE, TULLUR MANDAL, GUNTUR DISTRICT.

THE STATE OF ANDHRA PRADESH, REP BY ITS PRINCIPAL SECRETARY, FINANCE DEPARTMENT, SECRETARIAT BUILDINGS, VELAGAPUDI VILLAGE, TULLUR MANDAL, GUNTUR DISTRICT.

ANDHRA PRADESH CENTER FOR FINANCIAL SYSTEMS AND SERVICES APCFSS, REP. BY ITS CEO, GOVERNMENT OF ANDHRA PRADESH, 6TH FLOOR, C-BLOCK, ANJANEYA TOWERS, IBRAHIMPATNAM, KRISHNA DISTRICT - 521456.

THE COMMISSIONER OF PUBLIC HEALTH AND FAMILY WELFARE, THE STATE OF ANDHRA PRADESH GOLLAPUDI. VIJAYAWADA,

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KRISHNA DISTRICT.

THE DISTRICT COLLECTOR, SRIKAKULAM DISTRICT.

THE DISTRICT MEDICAL AND HEALTH OFFICER, SRIKAKULAM DISTRICT.

...RESPONDENT(S):

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 Writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the respondents in not paying an amount of Rs. 16,99,200/-(sixteen lakhs ninety nine thousand two hundred rupees only) to the petitioner for supply of various Surgical equipment or material for usage of 20PHCS is illegal, arbitrary, contrary to the principles of natural justice and in violation of the Art 14,19 and 21 of the Constitution of India and consequently direct the respondents to make the payment of an amount of Rs. 16,99,200/- (sixteen lakhs ninety nine thousand two hundred rupees only) forthwith along with interest of 24 percentage p.a from the date of submission of bills, and pass

Counsel for the Petitioner:

1.KAMINENI SOMANATH CHOWDARY

Counsel for the Respondent(S):

1.GP FOR MEDICAL HEALTH FW

2.GP FOR FINANCE PLANNING

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THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

WRIT PETITION NO. 26792 of 2024

ORDER:

The petitioner had been awarded the work order for purchase and supply of various surgical equipments for usage of 20 PHC’s in the Srikakulam District through the District Purchase Committee (DPC). After completion of supply of surgical equipments, a final bill was prepared for a sum of Rs.21,99,208/- out of which Rs.5,00,000/- has been paid to the petitioner and there is an outstanding due of Rs.16,99,208/- as per the sanctioned orders. As the payment of the said outstanding amount has not been made by the respondents, the petitioner has approached this Court by way of this writ petition.

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.

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.

On the other hand, Respondent No.6 filed counter-affidavit stating that upon receipt of the Special Development Fund from the 2^nd Respondent, the

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said amounts will be released to the 6^th respondent and the same will be paid to the petitioner through the Executing Agency.

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.16,99,200/- to the petitioner.

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/work order, 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 its claim for higher rate of interest, if any payable by the respondents, in an appropriate forum. There shall be no order as to costs.

Consequently, Miscellaneous Petitions, if any, pending in this Writ Petition shall stand closed.

_____________________________________ VENKATESWARLU NIMMAGADDA,J

03.02.2026 krk

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102

THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

WRIT PETITION NO: 26792 OF 2024

03.02.2026

KRK