Ganesh Sai Constructions, v. State of Andhra Pradesh
WP/8518/2024 · 2025-04-10
Sumathi Jagadam
body2025
DailyLaw.ai
[ 2025 DAILYLAW 13372 (AP) · dailylaw.ai ]
DailyLaw.ai
[ 2025 DAILYLAW 13372 (AP) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
THURSDAY, THE TENTH DAY OF APRIL TWO THOUSAND AND TWENTY FIVE
PRESENT THE HONOURABLE SMT JUSTICE SUMATHI JAGADAM
WRIT PETITION NO: 8518/2024 Between: Ganesh Sai Constructions ...PETITIONER AND The State of Andhra Pradesh and others ...RESPONDENT(S) Counsel for the Petitioner:
1. M/s. NIMMAGADDA REVATHI Counsel for the Respondent(S):
1. GP FOR IRRI AND CAD
2. GP FOR FINANCE PLANNING
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 order or direction more particularly one in the nature of WRIT OF MANDAMUS declaring the action of respondents in not releasing the Final Bills an amount of Rs.1, 15,08,284/- for the works executed by the petitioner pursuant to M-Book Nos.1481 and 1483 connected to the agreement bearing No.47SE/2021-22 dated 22.07.2021 for the work i.e., Repair Renovation and Restoration of Lower Upputeru Anicut System Tanks Bheemavaram Baddipudi Tank and supply channel near Bheemavaram Village in Ulavapadu Mandal of SPSR Nellore District (Erstwhile Prakasam District) under PMKSY-HKKP-RRR of WBs Scheme as illegal irregular irrational amounts to non-discharge of legal obligation conferred on them and under Articles 14 and 21 of Constitution of India
2 and consequently direct the respondents to pay the amount of Rs.1,15,08,284/- along with interest 12 percent per annum for the delayed amount to the petitioner for the said works executed by the petitioner and pass such other order or orders may deem fit and proper in the circumstances of the case.”
2. In spite of adjourning the matter several times, the respondents have not filed their counter affidavit.
3. The case of the petitioner is that the petitioner has participated in the tender process and the bid so submitted by the petitioner was accepted by the 4th respondent. The 4th respondent has entered into an agreement with the petitioner vide agreement No.47SE/2021-22, dated 22.07.2021, for execution of works relating to repair renovation and restoration of lower upputeru anicut system tanks (Bheemavaram Baddipudi Tank and supply channel) near Bheemavaram Village in Ulavapadu Mandal of SPSR Nellore District during the year 2020. The petitioner has completed the work. The 4th respondent has issued measurement books and passed final bill for an amount of Rs.1,15,08,284/-.
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 first and final bills were passed, the bills amount is not yet paid to the petitioner even after lapse of five years. The learned counsel for the petitioner further submits that in similar
3 circumstances, this Court in S. Srinivas Vs. State of Andhra Pradesh and others1 held as under:
“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. 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 bills were passed, the respondents have not released the amounts so far on the ground of insufficiency of funds. 1 2021 Lawsuit (AP)390
4 Since there is no dispute with regard to the execution of work and the bills amount, the respondents should pay the bills 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 case referred supra, the Writ Petition is disposed of, with the following directions: i) The respondents are directed to clear the bills submitted by the petitioner and release an amount of Rs.1,15,08,284/- in favour of the petitioner within three (3) months from the date of receipt of a copy of this order with interest at 12% p.a. ii) The interest shall be computed from the date of expiry of 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. __________________________ JUSTICE SUMATHI JAGADAM Date: 08.04.2025 KAS
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THE HONOURABLE SMT JUSTICE SUMATHI JAGADAM
WRIT PETITION NO.8518 of 2024
Date: 10.04.2025
KAS