APHC010128552024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3459] THURSDAY, THE TWENTY SEVENTH DAY OF MARCH TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SMT JUSTICE SUMATHI JAGADAM WRIT PETITION NO: 6771/2024 Between: Tadi Naga Mohan Reddy ...PETITIONER AND The State of Andhra Pradesh and others ...RESPONDENT(S) Counsel for the Petitioner: 1. SURESH KUMAR REDDY KALAVA Counsel for the Respondent(S): 1. GP FOR FINANCE PLANNING 2. GP FOR IRRIGATION COMM AREA DEV The Court made the following order: The present writ petition is filed under Article 226 of the Constitution of India seeking the following relief: “…to issue a writ or direction or order more particularly one in the nature of WRIT OF MANDAMUS declaring the action of the Respondents in withholding the payment of IVth and Part Bill of an amount Rs.3,60,49,089/- (CFMS No.2023-216269) even after finalizing the bills, payable to the petitioner in relation to the work i.e., APILIP - II - Modernisation of Andra Reservoir Project near Andra (V) in Mentada (M) in Vizianagaram District as per the agreement vide Agreement No.15se/2019-2020, dated 06.03.2020 as illegal, arbitrary and consequently direct the respondents to consider for payment of IVth and Part Bill of an amount Rs.3,60,49,089/- (CFMS No.2023-216269) with interest @12% per annum for the delayed amount to the petitioner in respect of execution of above-mentioned work forthwith and pass such other order or further orders as the 2 Hon’ble Court feels deem fit and proper in the facts and circumstances of the case.” (in verbatim) 2. In spite of adjourning the matter several times, the respondents have not filed their counter affidavit/written instructions. 3. The case of the petitioner is that the petitioner has participated in the tender process and stood as a lowest bidder. The 3rd respondent has entered into an agreement with the petitioner vide agreement No.15-SE/2019-20, dated, 06.03.2020, for execution of the work of modernization of Andhra Reservoir Project near Andhra (V) in Mentada (M) in Vizianagaram District. The petitioner completed the entire work and the respondents issued quality control certificate on 14.06.2022 stating that the execution of work and records are found satisfactory, and also recorded the same in the measurement book. The 4th respondent has passed the 4th and Part Bill for a net amount of Rs.3,60,49,089/- on 18.06.2022. 4. Learned counsel for the petitioner submits that the petitioner has borrowed amounts from third parties to execute the work and is paying huge interest. Though the 4th and Part Bill was passed on 18.06.2022, the respondents have not yet released the bill amount even after lapse of more than two years. The learned counsel for the petitioner further submits that in similar circumstances, this Court in S.Srinivas Vs. State of Andhra Pradesh and others1 held as under: 1 2021 Lawsuit (AP)390 3 21) In the considered opinion of this Court, withholding the amount for which the petitioner is legitimately entitled is nothing but depriving the petitioner. Due to illegal action of non-payment of the amounts promptly by clearing the bills submitted by the petitioner after execution of works, the petitioner could not feed and see the welfare of his family properly and he could not make payments to his employees/workers and he could not make payments to the material suppliers and he has to pay interests for the debts incurred by him for execution of works. Due to this situation, petitioner’s respect and dignity in the society will be deteriorated. As such, the petitioner’s right to life with respect and dignity will be deteriorated. As such, the petitioner’s right to life with respect and dignity will be defeated which is violative of Article 21 of the Constitution of India. 22) As such this Court holds that withholding the amount, for which the petitioner is legally entitled, is illegal, arbitrary, and unjust and violative of Article 21 of the Constitution of India. 24) A larger bench of the Hon’ble Apex Court in Secretary, Irrigation Department, Government of Orissa and others V. G.C.Roy opinied as extracted hereunder: “A person deprived of the use of money to which he is legitimately entitled has right to be compensated for the deprivation, call it by any name. It may be called interest, compensation or damages”. 25) The High Court of Andhra Pradesh in J.Devendra Reddy V Kakatiya University and another held that withholding of the amount payable to the petitioner for the contract works, constitutes patent arbitrariness on the part of the respondents. 5. This Court has observed that though the works were completed long back and the 4th and Part Bill was passed on 18.06.2022, the respondents have not released the bill amount so far on the ground of 4 insufficiency of funds. Since there is no dispute with regard to execution of the work and the bill amount, the respondents should pay the bill amount on “first done first paid” basis. 6. In view of the foregoing discussion and in the light of the law laid down by this Court in S.Srinivas’s case (referred supra), the Writ Petition is disposed of with the following directions: i) The respondents are directed to clear the 4th and Part Bill submitted by the petitioner and release an amount of Rs.3,60,49,089/- in favour of the petitioner within twelve (12) weeks from today with interest at 12% p.a. ii) The interest shall be computed from the date of expiry of the one month from the date of submission of the bill by the petitioner till the date of payment. There shall be no order as to costs. As a sequel, miscellaneous petitions pending, if any, shall stand closed. ______________________________ SMT JUSTICE SUMATHI JAGADAM Date:27.03.2025 SPP 5 THE HONOURABLE SMT JUSTICE SUMATHI JAGADAM WRIT PETITION NO.6771 of 2024 Date : 27.03.2025 SPP