M v K v Prasad Vs the State of Andhra Pradesh — Writ and Judicial Review | Andhra Pradesh HC (2026)

M v K v Prasad Vs the State of Andhra Pradesh — Writ and Judicial Review | Andhra Pradesh HC (2026)

What the court decided

AI extract

Outcome

Writ petition disposed of with directions: respondents to pay/clear the admitted dues (LS and Final Bills totalling Rs.28,39,131/- for the two works), arrived at after statutory deductions, within six (06) weeks of receipt of a copy of the order; petitioner at liberty to raise statutory-recovery disputes directly with the respondents and to pursue the interest claim before the appropriate forum; no order as to costs; miscellaneous petitions, if any, stand closed.

Issue for consideration

Whether the respondents' withholding of the finalised LS and Final Bills totalling Rs.28,39,131/- for two executed works is bad, illegal and arbitrary, and whether a Writ of Mandamus can issue under Article 226 for their release along with interest at 24% per annum. +1 more

Court's answer

Where execution of the work by the petitioner is admitted and the payment due is not disputed by the respondents, there is hardly any need for this Court to refer the matter to any forum or to arbitration for passing an arbitral award, notwithstanding any such condition in the agreement; the Court itself directs payment of the admitted amount.

Ratio / Principle

No adjudication of the interest claim in these proceedings; the petitioner is at liberty to approach the appropriate forum with regard to interest.

Key takeaways

The respondents are directed to clear the due amount to the petitioner within six (06) weeks from the date of receipt of a copy of the order.ratio¶46
The sum due to the petitioner is the amount arrived at after statutory deductions; if there is any dispute regarding statutory recoveries, the petitioner may communicate/interface directly with the respondents.ratio¶49

Detailed headnote1 paragraphs

Andhra Pradesh High Court (Single Bench, Tarlada Rajasekhar Rao J.) disposed of a contractor's Article 226 writ petition seeking release of LS-1 and Final Bills of two roads-and-buildings repair works at Rajamahendravaram aggregating Rs.28,39,131/- (Work 1: Rs.10,39,707/-, urgent repairs to Gowthami Vihar (R&B) Guest House; Work 2: Rs.17,99,424/-, urgent repairs to R&B Division and Section Offices; agreements dated 06-02-2023), together with interest at 24% per annum. In the counter-affidavit the respondents admitted the dues: the bills stood uploaded in CFMS (ID 2025-778668, net payable Rs.9,76,684/-; ID 2025-775857, net payable Rs.16,90,534/-), approved by APAO Dowlaiswaram but stalled for want of funds clearance. Holding that once execution of the work is admitted and payment is not disputed, the matter need not be referred to any forum or to arbitration notwithstanding any contractual arbitration condition, the Court directed payment of the admitted amount, computed after statutory deductions, within six weeks, with liberty to interface directly on recovery disputes. On interest, consistent with the Division Bench course in W.A.791 of 2022 (26.04.2022) and invoking D.F.O., South Kheri v. Ram Sanehi Singh on Article 226's reach over mala fide or arbitrary non-payment of dues, the Court declined to decide the interest claim and left it to the appropriate forum. Petition disposed; no costs.

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APHC010563842025

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI

(Special Original Jurisdiction)

[3330]

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

PRESENT

THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION NO: 29535/2025

Between:

M V K V PRASAD, S/O SRI M RAMA RAO, D.NO.2-18, NELATURU VILLAGE, CHAGALLU MANDAL, WEST GODAVARI DISTRICT

...PETITIONER

AND

THE STATE OF ANDHRA PRADESH, REP BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF ROADS AND BUILDINGS, SECRETARIAT BUILDING, VELAGAPUDI, AMARAVATHI, GUNTUR

THE EXECUTIVE ENGINEER, DEPARTMENT OF ROADS AND BUILDINGS, RAJAMAHENDRAVARAM, EAST GODAVARI DISTRI

THE SUPERINTENDING ENGINEER, DEPARTMENT OF ROADS AND BUILDINGS, RAJAMAHENDRAVARAM, EAST GODAVARI DISTRIC

THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF FINANCE AND PLANNING, SECRETARIAT BUILDINGS, VELAGAPUDI, AMARAVATHI, GUNTUR 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 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 LS and Final Bills of Two Works i.e., an Rs.28,39,131/-

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(Rupees Twenty Eight Lakhs Thirty Nine Thousand One Hundred and Thirty One only) even after finalizing the bills, payable to the Petitioner in relation to the works Rs.10,39,707/- (Rupees Ten Thousand Thirty Nine Thousand Seven Hundred and Seven only) pending for work urgent Repairs to Gowthami Vihar (R and B) Guest House at Rajamahendravaram in East Godavari District for an Estimate Amount of Rs.10 Lakhs vide Agreement No. /2022-23,Dt06-02-2023 ar d Rs.17,99,424/- (Rupees Seventeen Lakhs Ninety Nine Thousand Four Hundred and Twenty Four Only) pending for work Urgent Repairs to R and B Division, Office and R and B Section Offices at Rajamahendravaram, East Godavari for an Estimate Amount of Rs.18 Lakhs vide Agreement No. /2022-23, Dt.06-02-2023 with interest @ 24percentage per annum for the delayed amount till date of realization for the works executed by the petitioner and pass

IA NO: 1 OF 2025

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 releasing the amounts for LS and Final Bills of Two Works i.e., an Rs.28,39,131/- (Rupees Twenty Eight Lakhs Thirty Nine Thousand One Hundred and Thirty One on/yjpayable to the Petitioner herein, pending disposal of the write petition and pass

Counsel for the Petitioner:

1.DEVASRI ROSHAN KANCHARLA

Counsel for the Respondent(S):

1.GP FOR ROADS BUILDINGS

2.GP FOR FINANCE PLANNING

The Court made the following:

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THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION No.29535 OF 2025

ORDER:

The present Writ Petition is filed under Article 226 of the Constitution of

India seeking the following relief:

“…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 LS and Final Bills of Two Works i.e., an Rs.28,39,131/- (Rupees Twenty Eight Lakhs Thirty Nine Thousand One Hundred and Thirty One only) even after finalizing the bills, payable to the Petitioner in relation to the works Rs.10,39,707/- (Rupees Ten Thousand Thirty Nine Thousand Seven Hundred and Seven only) pending for work urgent Repairs to Gowthami Vihar (R and B) Guest House at Rajamahendravaram in East Godavari District for an Estimate Amount of Rs.10 Lakhs vide Agreement No. /2022-23,Dt06-02-2023 ar d Rs.17,99,424/(Rupees Seventeen Lakhs Ninety Nine Thousand Four Hundred and Twenty Four Only) pending for work Urgent Repairs to R and B Division, Office and R and B Section Offices at Rajamahendravaram, East Godavari for an Estimate Amount of Rs.18 Lakhs vide Agreement No. /2022-23, Dt.06-02-2023 with interest @ 24percentage per annum for the delayed amount till date of realization for the works executed by the petitioner and pass such other order or orders …”

Heard Ms Desavath Roshan Kancharla, learned counsel for petitioner and learned Government Pleader for respondents.

The present writ petition is filed aggrieved by the action of the respondents in withholding LS-1 and Final Bills of Two Works i.e., an Rs.28,39,131/- (Rupees Twenty Eight Lakhs Thirty Nine Thousand One Hundred and Thirty One only) even after finalizing the bills, payable to the Petitioner in relation to the works "Rs.10,39,707/- (Rupees Ten Thousand Thirty Nine Thousand Seven Hundred and Seven only) pending for work Urgent Repairs to Gowthami Vihar (R&B) Guest House at

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Rajamahendravaram in East Godavari District for an Estimate Amount of Rs.10 Lakhs vide Agreement No. 12022-23, Dt.06-02-2023" and "Rs.17,99,424/- (Rupees Seventeen Lakhs Ninety Nine Thousand Four Hundred and Twenty Four Only) pending for work Urgent Repairs to R&B Division, Office and R& B Section Offices at Rajamahendravaram, East Godavari for an Estimate Amount of Rs.18 Lakhs vide Agreement No.1202223, Dt.06-02-2023" of as bad, illegal, arbitrary, improper, unjust and against the Article 21 of Constitution of India.

Learned Government Pleader for Roads and Buildings for Respondent No.2 placed counter-affidavit asserting that the two works and bills were uploaded vide CFMS ID No.2025-778668 for Rs.10,39,707/- net payable Rs.9,76,684/- and CFMS ID 2025-775857 for Rs.17,99,424 and net payable Rs.16,90,534/- bills were approved by APAO, Dowlaiswaram and bills awaiting for funds clearance.

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.

In the present case, the respondents have not disputed the payment due to the petitioner for the work executed and the respondents have

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manifested in their written instructions 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 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.

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.

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

(a) The respondents are directed to clear the due amount to the petitioner within a period of six (06) 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.

(c) With regard to interest, the petitioner is at liberty to approach appropriate forum.

There shall be no order as to costs.

As a sequel thereto, miscellaneous petitions pending, if any, shall stand

closed.

__________________________________ JUSTICE TARLADA RAJASEKHAR RAO

Date: 10.02.2026

SSA