APHC010250812024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3460] FRIDAY, THE FOURTH DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 12498/2024 Between: 1. M/S KION PROJECTS AND INDUSTRIES,, FIRM NO. 208 OF 2019 VILLA NO. 190, RAMAKRISHNA TOWNSHIP, NEAR ACHARYA NAGARJUNA UNIVERSITY, NAMBURU, GUNTUR DISTRICT. REP. BY ITS MANAGING PARTNER, BOLLA VISHNUVARDHANA REDDY, S/O B. NAGI REDDY, AGED ABOUT 37 R/O H.NO. 1-49, NIDAMARRU VILLAGE, MANGALAGIRI MANDAL, GUNTUR DISTRICT. ...PETITIONER AND 1. THE STATE OF ANDHRA PRADESH, REPRESENTED BY ITS PRINCIPAL SECRETARY, MUNICIPAL ADMINISTRATION DEPARTMENT, A.P SECRETARIAT BUILDINGS, VELAGAPUDI, GUNTUR DISTRICT. 2. THE STATE OF ANDHRA PRADESH, REPRESENTED BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF FINANCE AND PLANNING ' A.P SECRETARIAT BUILDINGS, VELAGAPUDI, GUNTUR DISTRICT. 3. THE ANDHRA PRADESH COMPREHENSIVE FINANCIAL SYSTEM CFMS, 6 FLOOR, C BLOCK, ANJANEYA TOWERS, IBRAHIMPATNAM, KRISHNA DISTRICT, REP. BY ITS CHAIRMAN 2 4. THE COMMISSIONER AND DIRECTOR OF MUNICIPAL ADMINISTRATION, ANDHRA PRADESH AT TADEPALLI, GUNTUR DISTRICT. 5. THE DIRECTORATE OF WORKS AND ACCOUNTS, 3RD FLOOR, C BLOCK, ANJANEYA TOWERS, IBRAHIMPATNAM, KRISHNA DISTRICT. REP. BY ITS DIRECTOR OF WORKS AND ACCOUNTS. 6. PAY AND ACCOUNTS OFFICER, WORKS AND ACCOUNTS, GUNTUR. 7. THE DISTRICT TREASURY OFFICER, GUNTUR DISTRICT. 8. THE MANGALAGIRI TADEPALLI MUNICIPAL CORPORATION, REP. BY ITS COMMISSIONER, MANGALAGIRI, GUNTUR DISTRICT. ...RESPONDENT(S): Counsel for the Petitioner: 1. SASANKA BHUVANAGIRI Counsel for the Respondent(S): 1. GP FOR MUNCIPAL ADMN URBAN DEV 2. A S C BOSE (SC FOR MUNICIPAL CORPORATIONS AP) 3. GP FOR FINANCE PLANNING The Court made the following: 3 THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO.12498 of 2024 ORDER: 1. The present Writ Petition is filed questioning the action of the Respondent authorities in not paying the admitted amounts of Rs.42,18,052/- due to the Petitioner even after finalizing the bills in relation to the works vide Agreement Nos.400/2022-23, dated 04.11.2022, 421/2022-23, dated 04.11.2022, 427/2022-23, dated 14.11.2022, 549/2022-23, dated 23.12.2022, 554/2022-23, dated 23.12.2022 and 555/2022-23, as illegal and arbitrary. 2. A Counter Affidavit was filed on behalf of the Respondent No.8, wherein the execution of agreements and amounts due to the Petitioner was admitted as it is stated at Paragraph No.5 that the amounts due to the Petitioner could not be paid due to lack of general funds. 3. Further, it was stated that the Mangalagiri Tadepalli Municipal Corporation has undertaken many works during the previous financial years i.e. 2022-23 & 2023-24, but bills were not paid due to certain lapses, which have been taken in execution of works. Therefore, to observe the lapses in works executed, the 4 Commissioner, Additional Commissioner & Deputy Commissioner of Mangalagiri Tadepalli Municipal Corporation have inspected physically certain works and identified in the preliminary execution of works specifically in categories of Nomination Works, Chenetha Bazar, B.T & CC Roads and Shifting of Works. 4. It is further stated that preliminary report has been submitted to the Commissioner & Director of Municipal Administration, Andhra Pradesh vide Roc.No.758/2024/C, dated 06.10.2024 for taking further action and same is awaited. 5. It is further stated that the Superintendent of Police & Regional Vigilance & Enforcement Officer, Guntur vide Roc.No.138/ 2024/ V&E/ ENGG/ DEE/ GNT, dated 09.09.2024 had informed the Director General & Ex-office Principal Secretary to Government, Vigilance & Enforcement Department, Andhra Pradesh, Vijayawada to conduct detailed enquiry on certain aspects pertaining to Mangalagiri Tadepalli Municipal Corporation and it was requested to furnish the information relating to the works done 2019-2024 onwards. 5 6. Thereupon, the Vigilance & Enforcement Department has taken up verification on the works executed from 2019-2024 and the report is yet to be received, therefore the payments were not made apart from financial priorities of the Respondent-Corporation. 7. This Court after hearing the respective counsel is of the considered opinion that as there is no dispute to the execution of works and amounts due to the Petitioner as apparent from Paragraph No.5 of the Counter Affidavit, the Petitioners in that scenario cannot be called upon to wait peremptorily for conclusion of vigilance enquiry to receive their rightful amounts. At the same time, this Court cannot foreclose the vigilance enquiry. 8. Therefore, a balance has to be maintained vis-à-vis the ongoing vigilance enquiry and Petitioners, whose execution of works and amounts due are not in dispute. Therefore, it would be appropriate to dispose of the Writ Petition with the following directions; (i) The Petitioner shall submit a security bond undertaking to reimburse the amount to the Respondent-Corporation, if any on account of deficiency in the work or excess payment is made by the Respondent-Corporation pursuant to the ongoing vigilance enquiry; 6 (ii) On furnishing of security bond, the Respondent authorities are directed to pay the amounts due to the Petitioner within a period of six (6) months from today; (iii) No order as to costs. 9. With the above observation, the Writ Petition is disposed of. 10. As a sequel, pending applications, if any, shall stand closed. __________________ NYAPATHY VIJAY, J Date: 04.07.2025 IS 7 THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO.12498 of 2024 Date: 04.07.2025 IS