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Perugu Vasu v. the State of Ap

Andhra Pradesh HC30 Mar 2026WP/3940/2026

Case brief

AI extract

What is this about?

Contractor payment writ; admitted bills not uploaded on NIDHI Portal due to insufficiency of funds; employer cannot plead insufficiency of funds after availing services; Ongole Municipal Corporation; State of AP (Municipal Administration and Finance Departments); time-bound direction to disburse Rs.7,64,165/- within five plus two weeks; writ petition allowed, no costs; relied on Surya Constructions (2019) 16 SCC 794.

What did the court decide?

Writ petition allowed with a direction to the respondent authorities, including Respondent Nos.2 and 3, to complete the entire administrative process within five weeks and transfer the due amount of Rs.7,64,165/- to the petitioner's bank account within two weeks thereafter; petitioner to submit bank account details within three weeks; no order as to costs. ¶38

Perugu Vasu Vs the State of Ap — Andhra Pradesh HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the respondent authorities are bound to pay the writ petitioner the admitted amount of Rs.7,64,165/- notwithstanding that the bills were not uploaded on the NIDHI Portal due to insufficiency of funds.

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Court's answer

It is settled law that the employer cannot raise a plea of insufficiency of funds after availing the services of the writ petitioner; accordingly the admitted amount of Rs.7,64,165/- must be paid.

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Ratio / Principle

The respondent authorities, including Respondent Nos.2 and 3, were directed to complete the entire administrative process, inter-departmental and intra-departmental, within five weeks and to transfer the due amount to the writ petitioner's bank account within two weeks thereafter.

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Key takeaways

The writ petitioner was directed to submit his bank account details to the Competent Authority within three weeks for effective compliance.ratio¶37

Detailed headnote1 paragraphs

Andhra Pradesh High Court (Single Judge, Gannamaneni Ramakrishna Prasad, J.) allowed a writ petition by a contractor claiming Rs.7,64,165/- from the State/Ongole Municipal Corporation authorities. Per the Commissioner's written instructions dated 18.03.2026, the amount stood admitted but the bills had not been uploaded on the NIDHI Portal due to insufficiency of funds. Holding it settled law that an employer cannot plead insufficiency of funds after availing the contractor's services (relying on Surya Constructions v. State of U.P., (2019) 16 SCC 794, and other decisions), the Court directed the respondents, including Respondent Nos.2 and 3, to complete all inter-departmental and intra-departmental processes within five weeks and credit the due amount to the petitioner's bank account within two weeks thereafter; the petitioner was to furnish bank account details within three weeks. Writ petition allowed; no order as to costs.

[3328]

APHC010051982026

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI

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(Special Original Jurisdiction)

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TUESDAY,THE THIRTY FIRST DAY OF MARCH TWO THOUSAND AND TWENTY SIX

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PRESENT

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THE HONOURABLE SRI JUSTICE GANNAMANENI RAMAKRISHNA PRASAD

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WRIT PETITION NO: 3940/2026

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Between:

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PERUGU VASU, S/O VENKATESWARLU, AGED ABOUT 37 YEARS, OCC CONTRACTOR, H.NO. 8-98, NEAR WATER TANK, SANTHANUTHALAPADU, PRAKASAM DISTRICT, A.P.- 523225.

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...PETITIONER

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AND

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THE STATE OF AP, REP. BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF MUNICIPAL ADMINISTRATION AND URBAN DEVELOPMENT, SECRETARIAT BUILDINGS, VELAGAPUDI, AMARAVATHI, GUNTUR DISTRICT.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.522238

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THE MUNICIPAL CORPORATION, REP BY ITS MUNICIPAL COMMISSIONER ONGOLE, PRAKASAM DISTRICT. 523001

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THE MUNICIPAL EXECUTIVE ENGINEER, ONGOLE, PRAKASAM DISTRICT.

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THE MUNICIPAL DEPUTY EXECUTIVE ENGINEER, ONGOLE, PRAKASAM DISTRICT.523001

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THE MUNICIPAL ASSISTANT EXECUTIVE ENGINEER, ONGOLE,

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PRAKASAM DISTRICT. 523001

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THE PAY AND ACCOUNTS OFFICER, WORKS AND ACCOUNTS, PRAKASAM DISTRICT.523001

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...RESPONDENT(S):

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Counsel for the Petitioner:

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1.G.SAI LOCHAN

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Counsel for the Respondent(S):

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1.GP MUNCIPAL ADMN AND URBAN DEV AP

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2.GP FOR FINANCE PLANNING

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The Court made the following:

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ORAL ORDER:

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Heard Sri G. Sai Lochan, learned Counsel for the Writ Petitioner, Sri M. Srinu Babu, learned Assistant Government Pleader for Municipal Administration & Urban Development, Ms. D. Naga Chandrika, learned Assistant Government Pleader for Finance & Planning and Sri S. Vijay Kumar, learned Counsel appearing on behalf of Sri A.S.C. Bose, learned Standing Counsel for Ongole Municipal Corporation.

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Sri S. Vijay Kumar, learned Counsel appearing on behalf of Sri A.S.C. Bose, learned Standing Counsel for Ongole Municipal Corporation, has submitted the Written Instructions furnished by the Commissioner, Ongole Municipal Corporation dated 18.03.2026. Copy of it is supplied to the Counsel for the Writ Petitioner and the same is taken on record.

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Para 2 at Sl.No.5 of the Written Instruction would indicate that the amount claimed by the Writ Petitioner has been admitted but the bills have not been uploaded on to the NIDHI Portal due to insufficiency of funds. As seen from the facts, the amount claimed by the Writ Petitioner is only Rs.7,64,165/-. It is a settled law that the employer cannot raise a plea of insufficiency of funds after availing the services of the Writ Petitioner. (Please see (1) Surya

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Constructions vs. State of Uttar Pradesh and Others : (2019) 16 SCC 794 - Para Nos.2, 3 & 4, (2) Mr. S.C. Meena, EE (Project Narela) vs. Amit Tanwar : 2018 SCC OnLine Del 8035 - Para No.48, (3) Kashmir Wood Products vs Verinag Development Authority and Others : 2021 SCC OnLine J&K 814 - Para No.8, (4) Kattam Reddy Venkateswarlu Reddy Vs. State of Andhra Pradesh, Rep. by its Principal Secretary, Municipalities and Urban Development Department and three others : Order dated 23.01.2026 in W.P.No.34418 of 2025 of High Court of Andhra Pradesh)

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Having regard to the above facts and the settled legal position, this Court deems it appropriate to allow this Writ Petition, with a direction to the Respondent Authorities, including Respondent Nos.2 & 3, to complete the entire administrative process, both inter-departmental and intra-departmental, by way of mutual cooperation and coordination, within a period of five (5) weeks from today and transfer the due amount to the bank account of the Writ Petitioner within two (2) weeks thereafter.

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