Disposed

Archana Exports v. the State of Andhra Pradesh

Andhra Pradesh HC9 Sept 2026WP/6722/2026

Case brief

AI extract

What is this about?

The petitioner, Archana Exports, was awarded a contract for supply, delivery and installation of sandstone gazebos at Shilparamam, Vizianagaram and Visakhapatnam. Despite completion of work and finalization of bills, the respondents withheld payment of Rs. 36,89,246/-. Respondent No. 2 filed a counter-affidavit stating the bill was uploaded on the NIDHI portal and awaits fund clearance. The High Court disposed of the writ petition directing the respondents to release the due amount within three months, and held that any interest clause in the agreement is binding on both parties.

What did the court decide?

Direction to respondents to release Rs. 36,89,246/- within three months from receipt of order; any interest clause in agreement binding on parties.

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

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APHC010119892026

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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: 6722 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 Culture Secretariat Buildings, Velagapudi, Amaravathi, Guntur.522238

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The Chief Executive Officer, The Andhra Pradesh Silparamam Arts , rafts 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 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 pleased topleased to issue an appropriate Writ Order or direction more

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VS,J W.P.No.6722 of 2026

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particularly one in the nature of Writ of Mandamus declaring the action of the Respondents in withholding the payments of pending amounts of Rs. 36,89,246/- (Rupees Thirty Six Lakhs Eighty Nine Thousand Two Hundred and Forty Six only) for the year 2023, even after finalizing the bills, payable to the petitioner in relation to the work namely 1.Supply,DeliveryS, Installation of Sand Stone Gazebos at Shilparamam vizianagaram Agreementvidevisakhapatnam, Shilparamam/SEA/JA/2023-24, Dated 23.06.2023 bad ,illegal, arbitrary, improper, unjust and against the Article 21 of Constitution of India and consequently direct the respondents NO.03/AP as to pay the amounts of Rs. 36,89,246/- (Rupees Thirty Six Lakhs Eighty Nine Thousand Two Hundred and Forty Six only) with interest @ 24PERCENT 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 to forthwith consider releasing the amounts Rs. 36,89,246/- (Rupees Thirty Six Lakhs Eighty Nine Thousand Two Hundred and Forty Six 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 may be pleased to grant Leave for filing of the Counter Affidavit in WP.No.6722 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.6722 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.36,89,246/ Rupees Thirty Six Lakhs Eighty Nine Thousand Two Hundred and Forty Six only) for the year 2023, even after finalizing the bills, payable to the petitioner in relation to the work namely 1. Supply, Delivery & Installation of Sand Stone Gazebos at Shilparamam Vizianagaram & Visakhapatnam vide Agreement No.03/AP/SEA/JA/2023-24 Dated 23.06.2023 bad, illegal, arbitrary, improper, unjust and against the Article 21 of Constitution of India and consequently direct the respondents to pay the amount of Rs.36,89,246/- (Rupees Thirty Six Lakhs Eighty Nine Thousand Two Hundred and Forty Six 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 Shilparamam, Vizianagaram and Visakhapatnam, vide agreement No.03/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.36,89,246/- for the year 2023, even after finalization of 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.6722 of 2026

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Respondent No.2 has filed a counter-affidavit, wherein it is stated that, pursuant to the issuance of notices during the Defect Liability Period, the petitioner reconstructed the gazebo at Visakhapatnam in the month of November, 2025. Consequent upon such belated compliance by the petitioner, the bill in question was uploaded in the NIDHI Portal by respondent No.2 vide Bill No.2025-2271768 (Migrated Bill No.20267435271) and the said 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.36,89,246/- (Rupees Thirty Six Lakhs Eighty Nine Thousand Two Hundred and Forty Six 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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