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2025 DAILYLAW 43095 (AP)

M/s. RCNR Constructions, v. THE STATE OF AP

WP/6769/2025 · 2025-04-07

Sumathi Jagadam

body2025

Judgment text

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I IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) TUESDAY, THE EIGHTH DAY OF APRIL TWO THOUSAND AND TWENTY FIVE PRESENT THE HON’BLE SMT JUSTICE SUMATHI JAGADAM WRIT PETITION NO: 6769 OF 2025 Between: M/s. RCNR Constructions, Rep by its Managing Partner, Rayavarapu Chinna Narasimha Reddy, S/o. Nadipi Narasimha Reddy, aged about 40 years R/o. LIG 114, APHB Colony, Korrapadu Road, Proddatur Mandal, YSR Kadapa District. ...PETITIONER AND 1. The State of AP, Rep. by its Principal Secretary Finance and Planning Department, Secretariat Buildings, Velagapudi, Amaravathi, Guntur District. 2. The State of Andhra Pradesh, Rep. by its Principal Secretary, Irrigation Department, A.P. Secretariat Buildings, Velagapudi, Amaravathi, Guntur District. 3. The District Collector, Kadapa, YSR Kadapa District. 4. The District Collector, Nandyal, Kurnool District. 5. The Superintendent Engineer, K.C. Canal Division, Nandyal, Kurnool District. 6. The Executive Engineer, W.R.D K.C. Canal Division, Nandyal, Kurnool District. 7. The Assistant Pay and Accounts Officer, (Works and Accounts), Nandyal, Kurnool 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 Writ or Order or a direction, more particularly in the form of writ of mandamus, declaring the action of the Respondents in not making payment of Rs. 18,16,047/- (Rupees Eighteen Lakhs Sixteen Thousand Forty Seven only) due to the petitioner for the execution of works under Providing CC Walls to the Bellamvari Sluice Channels and cistern of KCC System in S.Mydukur Village in Mydukur Mandal Kadapa District vide as highly illegal, irregular, arbitrary, unreasonable, unjustified, unfair and in violation of the Article 14, 19 and 21 of the Constitution of India and consequently direct the Respondents to make the payment of aforementioned amount forthwith along with interest @ 24% P.A., to the petitioner. Agreement dated 22.06.2023 lA NO: 1 OF 2025 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 Respondents to pay an amount Rs. 18,16,047/- (Rupees Eighteen Lakhs Sixteen Thousand Forty Seven only) due to the petitioner for the execution of works under Providing CC Walls to the Bellamvari Sluice Channels and cistern of KCC System in S.Mydukur Village in Mydukur Mandal Kadapa District vide Agreement dated 22.06.2023, pending disposal of WP. No. of 2025 before this Hon’ble Court. Counsel for the Petitioner: SRI S DUSHYANTH REDDY Counsel for the Respondent Nos.1 & 7: GP FOR FINANCE & PLANNING Counsel for the Respondent Nos. 2 to 6: GP FOR IRRI & CAD The Court made the following: ORDER TUESDAY, THE EIGHTH DAY OF APRIL TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SMT JUSTICE SUMATHI JAGADAM WRIT PETITION NO: 6769/2025 Between: M/s. RCNR Constructions ...PETITIONER AND The State of Andhra Pradesh and others Counsel for the Petitioner: ...RESPONDENT(S) 1.D. DUSHYANTH REDDY Counsel for the Respondent(S): 1.GP FOR IRRI AND CAD 2.GP FOR FINANCE PLANNING The Court made the following: ORDER: The present writ petition is filed under Article 226 of the Constitution of India seeking the following relief: “...to Issue Writ or Order or a direction more particularly In the form of writ of mandamus declaring the action of the Respondents In not making payment of Rs 18,16,047/- (Rupees Eighteen Lakhs Sixteen Thousand Forty Seven only) due to the petitioner for the execution of works under Providing CC Walls to the Bellamvarl Sluice Channels and cistern of KCC System In S Mydukur Village In Mydukur Mandal Kadapa District vide Agreement dated 22.06.2023 as highly Illegal Irregular arbitrary unreasonable unjustified unfair and In violation of the Article 14, 19 and 21 of the Constitution of India and consequently direct the Respondents to make the payment of aforementioned amount forthwith along with Interest 24% P.A., to the petitioner and pass such other order the circumstances of the or orders may deem fit and proper case. ’’ in 2. In spite of adjourning the matter, the their counter affidavit. respondents have not filed 3. The case of the petitioner is that the petitioner has participated in the tender process and stood has entered into No.220/2023-24, dated 22.06.2023 CC walls to the Bellamvari sluice channel as a lowest bidder. The respondent an agreement with the petitioner vide agreement for execution of work of providing & cistern of KCC System in S. Mydukur Village of Mydukur Mandal, Kadapa District. The petitioner has completed the work. The 6*^ respondent has issued measurement an amount of Rs. 18,16,047/-. books and passed final bill for 4. Learned counsel for the petitioner submits borrowed amounts from third parties to huge interest. Though the first that the petitioner has execute the work and is paying and final bills were passed on 09,08.2023, the bills amount is not yet paid to the petitioner even after lapse of two years. The learned counsel for the petitioner further submits that in similar circumstances, this Court in S. SrinJvas Vs. State ofAndhra Pradesh and others^ held as under: ‘21) In the considered opinion of this Court, amount for which the petitioner is withholding the legitimately entitled is nothing but depriving the petitioner. Due to illegal action of non-payment of the amounts promptly by clearing the bitls submitted by the 2021 Lawsuit (AP)390 petitioner after execution of works, the petitioner could not feed and see the welfare of his family properly and he could not make payments to his employees/workers and he could not make payments to the material suppliers and he has to pay Interests for the debts incurred by him for execution of works. Due to this situation, petitioner’s respect and dignity in the society will be deteriorated. 22) /As such this Court holds that withholding the amount, for which the petitioner is legally entitled. Is Illegal, arbitrary, and unjust and violative of Article 21 of the Constitution of India. A larger bench of the Hon’ble Apex Court In Secretary, Irrigation Department, Government of Orissa and others V. G. C. Roy opinled as extracted hereunder: 'A person deprived of the use of money to which he Is legitimately entitled has right to be compensated for the deprivation, call it by any name. It may be called Interest, compensation or damages”. The High Court of Andhra Pradesh In J.Devendra Reddy V Kakatiya University and another held that withholding of the amount payable to the petitioner for the contract works, constitutes patent arbitrariness on the part of the respondents. ” 24) \ 25) 5. This Court has observed that though the works were completed long back and the bills were passed on 27.01.2024, the respondents have not released the amounts so far on the ground of insufficiency of funds. Since there is no dispute with regard to the execution of work and the bills amount, the respondents should pay the bills amount “first done first paid” basis. on 6. In view of the foregoing discussion and in the light of the law laid down by this Court in S. Srinivas case referred supra, the Writ Petition is disposed of, with the following directions; 4 i) The respondents are directed to clear the bills submitted by the ^ petitioner and release an amount of Rs.18,16,047/- in favour of the petitioner within eight (8) weeks from the date of receipt of a copy of this order with interest at 12% p.a. ii) The interest shall be computed from the date of expiry of one month from the date of submission of the bill by the petitioner till the date of payment. There shall be no order as to costs. As a sequel, miscellaneous petitions pending, if any. shall stand closed. Sd/- A. VIJAYA BABU ASSISTANT REGISTRAR //TRUE COPY// SECTION OTFICER To, 1. The Principal Secretary, Finance and Planning Department, Secretariat Buildings, Velagapudi, Amaravathi, Guntur District. 2. The Principal Secretary, Irrigation Department, A.P. Buildings, Velagapudi, Amaravathi, Guntur District. 3. The District Collector, Kadapa, YSR Kadapa District. 4. The District Collector, Nandyal, Kurnool District. 5. The Superintendent Engineer, K.C. Canal Division, Nandyal, Kurnool District. 6. The Executive Engineer, W.R.D K.C. Canal Division, Nandyal, Kurnool District. 7. The Assistant Pay and Accounts Officer, (Works and Accounts) Nandyal, Kurnool District One CC to Sri S Dushyanth Reddy, Advocate [OPUC] Vj^o^CCs to GP for Finance & Planning, High Court of Andhra Pradesh. 1(T Two CCs to GP for Irri & CAD, High Court of Andhra Pradesh. [OUT] 11. Three CD Copies Secretariat TF 4 HIGH COURT DATED:08/04/2025 ORDER WP.No.6769 of 2025 oi O', 19 SEP 2025 GQ j O SsQurrent SectjgivXl^ DISPOSING OF THE W.P., WITHOUT COSTS