APHC010267372019 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) 050 0 THURSDAY,THE FOURTH DAY OF SEPTEMB TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION Nos.12153 OF 2019 AND 28136 OF 2018 WRIT PETITION NO: 12153 OF 2019 Between: 1. Karri Sathi Babu, S/o Laxmana Rao, aged about 40 years, Occ; Contractor, I.Polavaram, LPolavaram Mandal, East Godavari District. 2. Kattumenu Ramakrishna, S/o Veeranna, aged about 63 Srinagar, Mandapeta, E.G.District. years. ...PETITIONERS AND 1. The State of Andhra Pradesh, rep. by its PrI. Secretary, MA and UD Department, Secretariat Buildings, Velagapudi, Amaravathi, Guntur District. 2. The Engineer-in-Chief, Public Health, Government of Andhra Pradesh, Tadepally, Guntur District-522501, 3. The Mandapeta Municipality, Mandapeta, East Godavari District, by its Commissioner. 4. The Municipal Council, Mandapeta, East Godavari District, rep. by its Chairperson . rep. ...RESPONDENTS 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 to issue Writ Order or Direction more particularly one in the nature of Writ of Mandamus by declaring the action of the respondents in deducting the 13.615% of the contract profit from the bills of the petitioners is illegal, arbitrary and voilative of the principle of natural justice and contrary to the > rules and agreement and further direct the respondents to return the amounts deducted from the bills of the petitioners. lA NO: 1 OF 2019 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 to direct the 3'*^ respondent to return the contract profit of 13.615/- deducted from the bills of the petitioners forthwith, pending final disposal of the Writ Petition. Counsel for the Petitioners: SRI T. V. V. KOTESWARA RAO Counsel for the Respondent Nos.1 & 2:GP FOR MUNICIPAL ADMINISTRATION AND URBAN DEVELOPMENT Counsel for the Respondent Nos.3 & 4: M/s. SIREESHA RANI VALLABHANENI, SC FOR MUNICIPALITIES APHC010590302018 B WRIT PETITION NO: 28136 OF 2018 Between: Kattumenu Praveen Krishna, S/o Ramakrishna, aged 34 Contractor, R/o Sreenagar, 1®* Street, Mandapeta, East Godavari District years, Occ ...PETITIONER AND 1. The State of Andhra Pradesh, Rep. by its PrI. Secretary, MA and UD Department, Secretariat Buildings, Velagapudi, Amaravathi, Guntur District. The Engineer-in-Chief, Public Health, Government of Andhra Pradesh, Tadepally, Guntur District-522501, The Mandapeta Municipality, Mandapeta, East Godavari District, rep. by its Commissioner. The Municipal Council, Mandapeta, East Godavari District, rep. by its Chairperson f 2. 3. 4. ...RESPONDENTS 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 to issue Writ Order or Direction more particularly one in the nature of Writ of Mandamus by declaring the action of the respondents in deducting the 13.615% of the contract profit from the bills of the petitioner is illegal, arbitrary and voilative of the principle of natural justice and contrary to the rules and agreement and further direct the respondents to return the amounts deducted from the bills of the petitioner. lA NO: 1 OF 2018 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 to direct the 3^'^ respondent not to deduct the 13.615% of the contract profit from the pending work bills of the petitioner, pending final disposal of the Writ Petition. Counsel for the Petitioner: SRI P. RAGHAVENDRA REDDY Counsel for the Respondent Nos.1 & 2:GP FOR MUNICIPAL ADMINISTRATION AND URBAN DEVELOPMENT Counsel for the Respondent Nos.3 & 4: M/s. SIREESHA RANI VALLABHANENI, SC FOR MUNICIPALITIES y The Court made the following: COMMON ORDER APHC010267372019 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3457] r iiff 0 THURSDAY,THE FOURTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION NOs: 12153/2019 and 28136/2018 WRIT PETITION NO: 12153/2019 Between: 1.KARRI SATHI BABU, S/0 LAXMANA RAO, AGED ABOUT 40 YEARS, OCC. CONTRACTOR, I.POLAVARAM, LPOLAVARAM MANDAL, EAST GODAVARI DISTRICT. 2.KATTUMENU YEARS, SRINAGAR, MANDAPETA, E.G.DISTRICT. RAMAKRISHNA, S/0 VEERANNA, AGED ABOUT 63 ..PETITIONER(S) AND 1 THE STATE OF ANDHRA PRADESH, REP. BY ITS PRL.SECRETARY SECRETARIAT BUILDINGS MA AND UD DEPARTMENT VELAGAPUDI, AMARAVATHI, GUNTUR DISTRICT. PUBLIC HEALTH, GOVERNMENT OF 2.THE ENGINEERINCHIEF ANDHRA PRADESH, TADEPALLY, GUNTUR DISTRICT-522501, MANDAPETA MUNICIPALITY, MANDAPETA, EAST GODAVARI DISTRICT, REP.BY ITS COMMISSIONER. 4.THE MUNICIPAL COUNCIL, MANDAPETA EAST GODAVARI DISTRICT, REP.BY ITS CHAIRPERSON . 3.THE ...RESPONDENT{S): Counsel for the Petitioner(S): 2 1? 1.TVVK0TESWARARA0 Counsel for the Respondent(S): I.Sireesha Rani Vallabhaneni,Standing Counsel For Municipalities 2.GP FOR MUNCIPAL ADMN URBAN DEV WRIT PETITION NO: 28136/2018 Between: 1.KATTUMENU PRAVEEN KRISHNA, S/0 RAMAKRISHNA YEARS, OCC CONTRACTOR, R/0 SREENAGAR MANDAPETA, EAST GODAVARI DISTRICT AGED 34 1ST STREET, ...PETITIONER AND 1.THE STATE OF ANDHRA PRADESH, REP. BY ITS PRL.SECRETARY MA AND UD DEPARTMENT, SECRETARIAT BUILDINGS VELAGAPUDI, AMARAVATHI, GUNTUR DISTRICT. 2.THE ENGINEERINCHIEF, PUBLIC HEALTH, GOVERNMENT OF ANDHRA PRADESH, TADEPALLY, GUNTUR DISTRICT-522501 3.THE MANDAPETA MUNICIPALITY. MANDAPETA, EAST GODAVARI DISTRICT, REP.BY ITS COMMISSIONER. 4.THE MUNICIPAL COUNCIL, DISTRICT, REP.BY ITS CHAIRPERSON MANDAPETA EAST GODAVARI ...RESPONDENT(S): Counsel for the Petitioner: 1.P RAGHAVENDRA REDDY Counsel for the Respondent(S): I.Sireesha Rani Vallabhaneni,Standing Counsel For Municipalities 2.GP MUNCIPAL ADMN AND URBAN DEV(AP) 3.GP FOR IRRI AND CAD (AP) 4.' The Court made the following Common Order: The petitioners are aggrieved by the action of the respondent authorities in deducting 13.615% of the contract profit from the bills of the petitioners. It is submitted that the petitioners executed the works that were entrusted to them, and the bills were also finalized. However, the 3'^'^ respondent has deducted an amount of Rs. 6.5 lakhs from the account of petitioner and Rs. 1,30,000/- from the account of the 2"'^ petitioner towards contract profit and other deductions. 3. The learned Standing Counsel was requested by this Court to ascertain the rule position which would enable the respondent authorities to deduct 13.615% from the final bills of the petitioners. Upon written instructions, it is submitted that, vide proceedings dated 27.08.2018, the 3’’*^ respondent addressed a letter to the Engineer-in-Chief, Public Health, Tadepalli, Guntur, duly informing that the Municipality had adopted the procedure of deduction of contract profit @13.615% in nomination work bills, similar to other sister municipalities. 4. In that regard, a clarification was sought from the Engineer-in-Chief as to whether it was appropriate to deduct contract profit in nomination works. It is also submitted that no further correspondence was exchanged between the Engineer-in-Chief and the 3"^ respondent. The learned Standing Counsel further submits that the 3’’'^ respondent issued written instructions on 15.04.2025, duly informing that the said deduction is in accordance with the norms followed by other municipalities. 2. the 1 5. -/ if L 4 Heard the learned counsel for the petitioners and the learned Standing 6. Counsel for the respondent Municipality. This Court has perused the written instructions and also the letter addressed by the 3'^'^ respondent to the Engineer-in-Chief dated 27.08.2018. There is no reference to any rule position that would entitle the Municipality or the Municipal Corporation to deduct 13.615% from the contract profit in nomination works. When such is the legal position, there is no justification in withholding amounts from the contract bills for the completed works at the rate 7. of 13.615%. Accordingly, these writ petitions are disposed off, and there shall be a direction to the respondents to verify the withhold amounts and release the same within a period of six (06) weeks from the date of receipt of a copy of 8. this order. There shall be no order as to costs. 1 Pending miscellaneous petitions, if any, shall stand closed. 9. Sd/- G. HELA NAIDU ASSISTANT REGISTRAR SECTION OFFICER //TRUE COPY// To, 1. The Prl. Secretary, MA and UD Department, State of Andhra Pradesh, Secretariat Buildings, Velagapudi, Amaravathi, Guntur District. The Engineer-in-Chief, Public Health, Government of Andhra Pradesh, Tadepally, Guntur District-522501, The Commissioner, Mandapeta Municipality, Mandapeta, East Godavari District. The Chairperson, Municipal Council, Mandapeta, East Godavari District. One CC to Sri T. V. V. Koteswara Rao, Advocate [OPUC] One CC to Sri P. Raghavendra Reddy, Advocate[OPUC] One CC to M/s. Sireesha Rani Vallabhaneni, SC for Municipalities [OPUC] Two CCs to GP for Municipal Administration and Urban Development, High Court of Andhra Pradesh. [OUT] Two CD Copies. 2. 3. 4. 5. 6. 7. 8. 9. ssb i, i HIGH COURT DATED:04/09/2025 COMMON ORDER WP Nos. 12153 of 2019 & 28136 of 2018 O (S 2D SEP 2025 | DISPOSING OF THE WRIT PETITIONS WITHOUT COSTS