Siddhardha Constructions Private Ltd. v. State of Telangana
Contract (works) – Withholding of final dues – Express interest-bar clause
Case brief
What is this about?
Telangana High Court, W.P. No. 10829 of 2023, decided 12.02.2025 by Nagesh Bheemapaka J. Contractor (Siddhardha Constructions Pvt. Ltd.) sought mandamus under Article 226 for release of withheld balance final security deposit (Rs.83,810) and final bill (Rs.14,93,761) totalling Rs.15,77,571, with 24% interest, pleading violation of Article 14 and Article 19; IA under Section 151 CPC. Principal remitted during pendency per interim order dated 20.04.2023; interest claim rejected because Clause 43 of the Agreement bars interest on payments in arrear and balances due; express contractual interest-bar precludes pendente lite interest (Union of India v. Manrai Enterprises relied on); strict enforcement of written contract terms; petitioner-cited precedents (TAMGEDCO Ltd. v. T.T. Industries Ltd.; M/s Raghava HES Nauaguga (JV) v. State of Telangana, W.P. No. 12825 of 2023) distinguished as arising on different facts. Writ petition dismissed without costs. Counsel: M/s IndusLaw Firm (petitioner); GP for Roads & Buildings (Resp. 1-4); GP for Finance & Planning (Resp. 5). Useful for: interest claims under works contracts, effect of no-interest clauses, Clause 43/42.3-type stipulations, delayed payment by State R&B authorities.