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2025 DAILYLAW 3766 (AP)

JAI HANUMAN TRANSPORT v. THE STATE OF ANDHRA PRADESH

WP/1176/2025 · 2025-07-09

Subba Reddy Satti

body2025

Judgment text

Extracted from the PDF above. The PDF is authoritative.

THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 1176/2024 ORDER: 1. The petitioner had been awarded the contract of work(s) under the subject scheme in Chittoor District. After execution of the said contract, a final bill was prepared for a sum of Rs.3,42,57,611/- as per the sanctioned orders. As the payment of the said amount has not been made by the respondents, the petitioner has approached this Court by way of this writ petition. 2. It is the contention of the petitioner that even though the respondents admitted that the petitioner is entitled for payment of Rs.3,42,57,611/-, no payment is being made. The petitioner contends that such non-payment of money is clearly arbitrary and high-handed requiring the interference of this Court. 3. This Court, in various orders, including the judgment of a learned Single Judge of this Court dated 05.10.2021 in W.P.No.10038 of 2021 and batch had taken the view that such non-payment of dues is arbitrary and that such dues need to be cleared by the respondents at the earliest. 4. On the other hand, learned Government Pleader for Panchayat Raj, filed the counter affidavit on behalf of the 4th respondent, wherein it is stated that:- “ D) The petitioner and 4th respondent have entered into an agreement No. of 2022-23, dt.30.07.2022. The Administrative sanction amount is Rs.516.00 lakhs and package technical approval was given for Rs.516.00 lakhs and estimate contract value is Rs.422.13 Lakhs. E) As per the agreement, the petitioner has completed the works and the entire proceedings were recorded in M Book by this office. The valuation of the work done by the petitioner company is at Rs.3,42,57,611/- and after deductions, the outstanding amount stood at Rs.3,17,38,743/-. F) The Executive Engineer, Project Implementation Unit (PIU), Chittoor is not able to upload the said bill in NIDHI Portal because the Head of Account to this grant is not yet assigned by the Government of Andhra Pradesh. A letter addressed to the Chief Engineer-I, Panchayatraj, Vijayawada vide Roc.No.A3/Work Bill/2/AMC/2023, Dt: 02.01.2023 by the Executive Engineer, PIU Division, Chittoor”. 5. In view of the facts and circumstances submitted in the affidavit, and the directions of this Court in various cases and after hearing the submissions of learned counsel for the petitioner, this Writ Petition is disposed of with a direction to the respondents to release the amount of Rs.3,17,38,743/- to the petitioner. 6. As far as interest component is concerned, if there is any subsisting clause in the agreement/work order envisaging payment or non-payment of interest upon any amount which is due and payable, the same is binding upon both the parties. In the absence of any clause with regard to interest component in the agreement, the respondents are directed to release the amount along with the interest @ 6% per annum on delayed payment, in view of the judgment of the Hon’ble Division Bench of this Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023 if not paid, within a period of nine (09) months from the date of receipt of a copy of this order. It would also be open to the petitioner to agitate his claim for higher rate of interest and due amount, if any payable by the respondents, in an appropriate forum. There shall be no order as to costs. Consequently, Miscellaneous Petitions, if any, pending in this Writ Petition shall stand closed. _____________________________________ VENKATESWARLU NIMMAGADDA,J 09.009.2025 klk 561 THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 1176 OF 2024 09.09.2025 klk