M/S KION PROJECTS AND INDUSTRIES v. THE STATE OF ANDHRA PRADESH
WP/21609/2024 · 2025-07-09
Nyapathy Vijay
body2025
DailyLaw.ai
[ 2025 DAILYLAW 29167 (AP) · dailylaw.ai ]
DailyLaw.ai
[ 2025 DAILYLAW 29167 (AP) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
APHC010417432024
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: 21609/2024 Between: M/s Kion Projects And Industries ...PETITIONER AND The State Of Andhra Pradesh and Others ...RESPONDENT(S) Counsel for the Petitioner:
1. SASANKA BHUVANAGIRI Counsel for the Respondent(S):
1. A S C BOSE (SC FOR MUNICIPAL CORPORATIONS AP)
2. GP MUNCIPAL ADMN AND URBAN DEV AP
3. GP FOR FINANCE PLANNING The Court made the following:
THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY
WRIT PETITION NO: 21609 OF 2024 ORDER: This Writ Petition is filed to declare the action of the respondents in not paying the admitted due amount of Rs.1,02,116/-, Rs. 20,62,909/-, Rs. 8,94,448/- and Rs. 9,01,049/-, totaling Rs 39,60,522/- (Thirty Nine Lakhs Sixty Thousand five hundred and twenty two) payable to petitioner in relation to 4 works executed by it for the 8th respondent herein under agreement Bearing Nos. 14/2022-23 (dated 12-04-2022), 398/2022-23 (dated 30-10-2023), 486/2023-24 (dated 07-02-2024) and 492/2023-24 (dated 07-02-2024) respectively despite finalizing the bills 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. 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 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. 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 09.08.2024 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. 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 Petitioner in that scenario cannot be called upon to wait peremptorily for
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-à-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. __________________ NYAPATHY VIJAY, J Date: 10.07.2025
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THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY
WP No.21609 of 2024 Date: 10.07.2025
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