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2025 DAILYLAW 22960 (AP)

KION PROJECTS AND INDUSTRIES v. THE STATE OF ANDHRA PRADESH

WP/16623/2024 · 2025-07-09

Nyapathy Vijay

body2025

Judgment text

Extracted from the PDF above. The PDF is authoritative.

APHC010323332024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) THURSDAY, THE TENTH DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 16623 OF 2024 Between: 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, Bella Vishnuvardhana Reddy, S/o B. Nagi Reddy, aged about 37 years, 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 Management System, (CFMS), 6th floor, C block, Anjaneya Towers, Ibrahimpatnam, Krishna District, Rep. By its Chairman. 4. The Commissioner and Director, of Municipal Administration, Andhra Pradesh at Tadepalli, Guntur District. 5. The Directorate of Works and Accounts, 3'^'^ 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. ...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 a writ or direction more particularly one in the nature of Writ of Mandamus declaring the action of the respondents in not paying the admitted due amount of Rs 26,28,667/- (Twenty Six lakhs Twenty Eight thousand Six hundred and Sixty seven) payable to petitioner in relation to 6 under agreement works executed by it for the 8TH respondent herein Bearing No/s 677/2023-24 (dated 16-03-2024) 678/2023-24 (dated 16-03- 2024), 679/2023-24 (dated 16-03-2024), 680/2023-24 (dated 16-03-2024), 681/2023-24 (dated 16-03-2024), 682/2023-24 (dated 16-03-2024) respectively despite finalizing the bills, as illegal, arbitrary, unconstitutional and consequently direct the respondents herein to immediately pay the due amount of Rs 26,28,667/- (Twenty Six lakhs Twenty Eight hundred and Sixty seven) payable to petitioner in relation the above 6 works executed for 8“^ respondent under the said agreements with an interest @ 12% per annum thousand Six lA NO: 1 OF 2024 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 direct the respondents herein to release the due amount of Rs.26,28,667/- (Twenty Six lakhs Twenty Eight thousand Six hundred and Sixty seven) payable to petitioner in relation to 6 works executed by it for the to 8 respondent herein under agreement Bearing No.’s 677/2023-24 (dated 16-03- 2024), 678/2023-24 (dated 16-03-2024), 679/2023-24 (dated 16-03-2024), 680/2023-24 (dated 16-03-2024),681/2023-24 (dated 16-03-2024), 682/2023- 24 (dated 16-03-2024) respectively within a stipulated time frame Counsel for the Petitioner; M/S. SASANKA BHUVANAGIRI Counsel for the Respondents No.1 & 4: GP FOR MUNCIPAL ADMN URBAN DEV Counsel for the Respondents No.2, 3 & 5 to 7: GP FOR FINANCE AND PLANNING Counsel for the Respondent No.8: Standing Counsel for Tadepali Municipal Corporation The Court made the following order: p APHC010323332024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3460] THURSDAY,THE TENTH DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 16623/2024 Between; Kion Projects And Industries ...PETITIONER AND The State Of Andhra Pradesh and Others Counsel for the Petitioner: ...RESPONDENT{S) 1 .SASANKA BHUVANAGIRI Counsel for the Respondent(S): 1.GP FOR MUNCIPAL ADMN URBAN DEV 2.GP FOR FINANCE PLANNING The Court made the following: f THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 16623 OF 2024 ORDER: This Writ Petition is filed to declare the action of the respondents in not paying the admitted due amount of Rs 26,28,667/- (Twenty Six lakhs Twenty Eight thousand Six hundred and Sixty seven) payable to Petitioner in relation to 6 works executed by it for the respondent herein under agreement Bearing No/s 677/2023-24 (dated 16-03-2024), 678/2023-24 (dated 16-03-2024), 679/2023-24 (dated 16-03-2024), 680/2023-24 (dated 16-03-2024), 681/2023-24 (dated 16- 03-2024), 682/2023-24 (dated 16-03-2024) respectively despite finalizing the bills, as illegal and arbitrary. A Counter Affidavit was filed on behalf of the Respondent No.8, wherein 2. the execution of agreements and amounts due to the Petitioner was admitted. It is stated at paragraph No.5 that the amounts due to the Petitioner could not be paid due to lack of general funds. Further, it was stated that the Mangalagiri Tadepalli Municipal Corporation 3. had 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 Commissioner, Additional Commissioner & Deputy Commissioner of Mangalagiri Tadepalli Municipal Corporation have physically inspected certain works and ( identified lapses 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. 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 09.08.2024 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. 5. Thereupon, the Vigilance & Enforcement Department has taken 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. up 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 Petitioner in that scenario cannot be called upon to wait peremptorily for 7. conclusion of vigilance enquiry to receive his rightful amounts. At the same time, this Court cannot foreclose the vigilance enquiry. 8. Therefore, a balance has to be maintained vis-a-vis the ongoing vigilance enquiry and Petitioner, 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; (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. Sd/- M SRINIVAS ASSISTANT REGISTRAR //TRUE COPY// SECTION OFFICER To, Andhra Pradesh, Municipal Secretariat buildings, Velagapudi, The Principal Secretary, State of Administration Department, A.P Guntur District. The Principal Secretary, State of Finance and Planning A.P District. 1. Andhra Pradesh, Department of Secretariat buildings, Velagapudi, Guntur 2. 3. The Chairman, The Andhra Pradesh Comprehensive Financial Management System, (CFMS), 6th floor, C block, Anjaneya Towers, Ibrahimpatnam, Krishna District 4. The Commissioner and Director of Municipal Administration, Andhra Pradesh at Tadepalli, Guntur District. 5. The Director of Works and Accounts, Directorate of Works and Accounts, 3^^^ floor, C block, Anjaneya Towers, Ibrahimpatnam, Krishna District. 6. Pay and Accounts Officer, Works and Accounts, Guntur. 7. The District Treasury Officer, Guntur district. 8. The Commissioner, Mangalagiri Tadepalli Municipal corporation, Mangalagiri, Guntur district. 9. One CC to SRI SASANKA BHUVANAGIRI Advocate [OPUC] 10. Two CCs to GP FOR MUNCIPAL ADMN URBAN DEV High Court of Andhra Pradesh [OUT] 11. Two CCs to GP FOR FINANCE AND PLANNING High Court of Andhra Pradesh [OUT] 12. One CC to STANDING COUNSEL FOR TADEPALLI MUNICIPAL CORPORATION, Advocate [OPUC] 13. Two CD Copies gsg HIGH COURT DATED: 10/07/2025 ORDER WP NO. 16623 OF 2024 DISPOSING THE WP WITHOUT COSTS