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Archana Exports v. the State of Andhra Pradesh

Andhra Pradesh HC9 Sept 2026WP/6664/2026

Case brief

AI extract

What is this about?

The petitioner, Archana Exports, executed a contract for supply, delivery, and installation of sandstone gazebos at Kakinada Shilparamam Park. After completion, the respondents withheld payment of Rs. 15,08,740/- despite finalizing the bill. The respondents admitted the bill was uploaded in the NIDHI portal and awaited fund clearance. The High Court disposed of the writ petition directing respondents to release the amount within three months, and held that any interest clause in the agreement is binding.

What did the court decide?

Respondents directed to release Rs. 15,08,740.08/- within three months from receipt of the order; any interest clause in the agreement binding on both parties.

Archana Exports Vs the State of… — Contract and Commercial Disputes | Andhra Pradesh HC (2026)

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APHC010119842026

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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 SMT JUSTICE V.SUJATHA

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WRIT PETITION NO: 6664 OF 2026

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Between:

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ARCHANA EXPORTS, Rep.by. Managing Partner P. Bhaskar Naidu.S/o.P.AIIaiah naidu Age 68 years, R/o.14-346, Palace Road, Kuppam Chittoor District

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...Petitioner

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AND

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THE STATE OF ANDHRA PRADESH, Rep by its Principal Secretary Special Chief Secretary to Government, Department of Tourism and Culture Secretariat Buildings, Velagapudi, Amaravathi, Guntur.522238

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The Chief Executive Officer, The Andhra Pradesh Silparamam Arts , rafts and cultural Society,Vijayawada. 520008

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The CEO, Of Andhra Pradesh Centre for Financial System and Services(PCFSS), Nidhi Bhavan,3rd Floor,IT Park, Behind APIIC Building, Mangalagiri,Guntur District-522503

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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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...Respondents

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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

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VS,J W.P.No.6664 of 2026

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pleased topleased 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 pending amounts of Rs. 15,08,740/- (Rupees Fifteen Lakhs Eight Thousand Seven Hundred and Forty only) for the year 2023, even after finalizing the bills, payable to the petitioner in relation to the work namely 1.Supply,Delivery and Installation of Sand Stone Gazebos at Kakinada Shilparamam Park, vide Agreement No.02/AP Shilparamam/SEA/JA/2023- 24, Dated 23.06.2023 as bad .illegal, arbitrary, improper, unjust and against the Article 21 of Constitution of India and consequently direct the respondents to pay the amounts of Rs. 15,08,740/(Rupees Fifteen Lakhs Eight Thousand Seven Hundred and Forty only) with interest @ 24 percent per annum for the delayed amount till date of realization for the works executed by the petitioner and pass

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IA NO: 1 OF 2026

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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 pleased to direct the respondents forthwith to consider releasing the amounts Rs. 15,08,740/- (Rupees Fifteen Lakhs Eight Thousand Seven Hundred and Forty only) payable to the petitioner herein, pending disposal of the writ petition and pass

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IA NO: 2 OF 2026

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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 pleased to grant Leave for filing of the Counter Affidavit in WP.No.6664 of 2026 and pass

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Counsel for the Petitioner: DEVASRI ROSHAN KANCHARLA

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Counsel for the Respondents: GP FOR TOURISM Counsel for the Respondents:Y BALAJI Counsel for the Respondents:GP FOR FINANCE PLANNING

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The Court made the following

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VS,J W.P.No.6664 of 2026

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ORDER:

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The present writ petition came to be filed under Article 226 of the

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Constitution of India seeking 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 pending amounts of Rs.15,08,740/ (Rupees Fifteen Lakhs Eight Thousand Seven Hundred and Forty only) for the year 2023, even after finalizing the bills, payable to the petitioner in relation to the work namely 1. Supply, Delivery and Installation of Sand Stone Gazebos at Kakinada Shilparamam Park, vide Agreement No.02/AP Shilparamam/SE/A/VJA/2023-24 Dated 23.06.2023 as bad, illegal, arbitrary, improper, unjust and against the Article 21 of Constitution of India and consequently direct the respondents to pay the amounts of Rs.15,08,740/- (Rupees Fifteen Lakhs Eight Thousand Seven Hundred and Forty only) with interest @ 24% per annum for the delayed amount till date of realization for the works executed by the petitioner …... ”

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Heard learned counsel for the petitioner and the learned counsel appearing for the respondents.

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The petitioner herein was awarded the contract for execution of the work, i.e., supply, delivery and installation of sandstone gazebos at Kakinada Shilparamam Park, vide agreement No.02/AP Shilparamam/SE/VJA/2023-24, dated 23.06.2023. However, despite completion of the said work, the respondents have withheld the payment of Rs.15,08,740/- for the year 2023, even after finalizing the bills payable to the petitioner. Aggrieved thereby, the petitioner has approached this Court by filing the present writ petition.

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VS,J W.P.No.6664 of 2026

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Respondent No.2 has filed a counter-affidavit, wherein it is stated that the petitioner was entrusted with the subject work pursuant to the agreement dated 23.06.2023. Thereafter, the first and final bill was uploaded in the NIDHI portal by respondent No.2 for a gross amount of Rs.16,66,287.08/- and a net amount of Rs.15,08,740.08/- vide Bill No.2025-538756 (Migrated Bill No.20267435990) and the bill is awaiting for fund clearance.

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In view of the above, as the respondents have admitted regarding the payment and have also uploaded the bill payable to the petitioner in the NIDHI portal, which is awaiting for fund clearance, this Writ Petition is disposed of with a direction to the respondents to release the amount due and payable to the petitioner, i.e. Rs.15,08,740.08/- (Rupees Fifteen lakhs eight thousand seven hundred and forty only) in respect of the works referred to above, within a period of three (3) months from the date of receipt of a copy of this order. As far as interest component is concerned, if there is any subsisting clause in the agreement/work order envisaging payment of interest upon any amount, which is due and payable, the same is binding upon both the parties. There shall be no order as to costs.

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Miscellaneous petitions, if any pending, in this case, shall stand closed.

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______________________ JUSTICE V.SUJATHA

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Date: 10.09.2026 KGR

Archana Exports v. the State of Andhra Pradesh

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Archana Exports v. the State of Andhra Pradesh

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