l IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) THURSDAY, THE SEVENTEENTH DAY OF APRIL TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SMT JUSTICE SUMATHI JAGADAM WRIT PETITION NO: 8914 OF 2024 Between: Nas Babu Constructions Pvt. Ltd., Rep. by its Managing Director, NW Nagendram, S/o. Venkateswrara Rao, R/o. D.No.10-150-A2,1 Rajendra Nagar, Gudivada, Krishna District. St Lane, ...PETITIONER AND 1. The State of Andhra Pradesh, Rep. by its Principal Secretary, Irrigation and Command Area Development Department, Secretariat, Velagapudi, Amaravathi. 2. The State of Andhra Pradesh, Rep. by its Principal Secretary, Department of Finance and Planning, Secretariat, Velagapudi, Amaravathi. 3. The Chief Engineer, Krishna Delta System, Vijayawada. Krishna Guntur 4. The Superintending Engineer, Irrigation Circle, Guntur, Guntur District. 5. The Executive Engineer, Drainage Division, Repalle, Guntur District. 6. The Dy. Executive Engineer, Drainage Sub-Division, Repalle, 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 an appropriate writ or order or a direction more particularly one in the nature of writ of MANDAMUS declaring the ,action of the respondents in not releasing the Price Escalation Adjustment amount of Rs 13,88,405/- for Fuel, Labour and Machinery for execution of work for Modernization of Dredging of Gundamthippa Straight Cut of B.M. Km (-) 2.25 to Km. 3.400 in Guntur District, including Detailed Investigation Sub-soil Exploration, Preparation of H.Ps, Preparation of L.P. and operation and Maintenance of the System Drain from Schedules, for Two years, after completion of the work on E.P.C. Turn Key System vide Agt.No.12 SF/2011- 12, Dt. 13.08.2011 in Irrigation and CAD Department for Modernization of Krishna Delta System Drainage Sector in Irrigation Circle, Guntur, Guntur District, as is illegal, arbitrary and violative of Articles 14, 21 and 300-A of the Constitution of India and also violative of principles of natural justice consequently direct the respondents to release the and approved price petitioner in respect of escalation amount of Rs.13,88,405/- due to the execution of work forthwith interest of 18%. 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 to direct the respondents to pay the approved price escalation amount of Rs. 13,88,405/- for Fuel, Labour and Machinery for work for Modernization of Dredging of Gundamthippa Straight Cut Drain from Km (-) 2.25 to Km. 3.400 in Guntur District, “including “ Detailed Investigation, Sub-soil Exploration, Preparation of H.Ps, Preparation of L.P. Schedules, and operation and Maintenance of the System for Two years, after completion of the work SE/2011-12, Modernization of Krishna Delta System Drainage Sector in Irrigation Circle Guntur, Guntur District, immediately, pending disposal petition. Counsel for the Petitioner: SRI MALLIKHARJUNARAO Counsel for the Respondent Nos.l, 3 to 6: GP FOR IRRIGATION & Counsel for the Respondent No.2: GP FOR FINANCE AND The Court made the following: ORDER execution of of B.M. on E.P.C. Turn Key System” vide Agt.No.l2 Dt.13.08.2011 in Irrigation and CAD Department for of the main writ RUDRA CAD PLANNING APHC010176252024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3459] THURSDAY, THE SEVENTEENTH DAY OF APRIL TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SMT JUSTICE SUMATHI JAGADAM WRIT PETITION NO: 8914/2024 Between: Nas Babu Constructions Pvt.ltd., ...PETITIONER AND The State Of Andhra Pradesh and Others ...RESPONDENT(S) Counsel for the Petitioner: 1.MALLIKHARJUNARAO RUDRA Counsel for the Respondent{S): 1.GP FOR FINANCE PLANNING 2.GP FOR IRRIGATION COMM AREA DEV 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 an appropriate writ or order or a direction more particularly one In the nature of wrjtof Mandamus declaring the action of the respondents in not releasing the Price Escalation :L •wV r;'- ill 2 Adjustment amount of Rs. 13,88,405/- for Fuel Labour and Machinery for execution of work for Modernization of Dredging Gundamthippa Straight Cut of B.M. Drain from Km (-) 2.25 to Km. 3.400 in Guntur District, “including Detailed Investigation Subsoil Exploration Preparation of H.Ps, Preparation of L.P. Schedules, and operation and Maintenance of the System for Two completion of the work on E.P.C Turn Key System” vide Agt.No SF/2011-12, Dt. 13.08.2011 in Irrigation and CAD Department for Modernization of Krishna Delta System Drainage Irrigation Circle Guntur District as is illegal, arbitrary and violative of Articles 14, 21 and 300A of the Constitution of India violative of principles of natural Justice and consequently direct the respondents to release the approved price escalation Rs. 13,88,405/- due to the petitioner in respect of execution of work forthwith interest of 18% and to pass.... ” In spite of adjourning the matter respondents have not filed their counter affidavit. of years, after 12 Sector in and also amount of 2. several times, the 3. The case of the petitioner is that the petitioner is a contractor and the 4^^ respondent has entered into petitioner an agreement with the No. C E/KDSA/ij/OT-2/AE- 2/Dredging/T.S/2011 659, dated 17.03.2012, for execution of work Modernization of Dredging of Gundamthippa Straight B.M.Drain from Km (-) 2.25 to Km.3.400 in Guntur District, during the year 2011-2012. The petitioner has completed the Agt.No. 12 SE/2011-12, dated 13.08.2011. The 4‘^ and 6*^ vide agreement of Cut of work vide 3 respondents have approved a final bill for an amount of Rs.13,88,405/-. 4. Learned counsel for the petitioner submits that the petitioner has executed the work long back by providing skilled and unskilled labour, machinery and materials in high rates and the petitioner has borrowed amounts from third parties to execute the work and is paying huge interest. He submits that, though, the first and final bills were approved in the year 2022, the bills amount is not yet paid to the petitioner even after lapse of three years. The learned counsel for the petitioner further submits that in similar circumstances, this Court in S. Srinivas Vs. State of Andhra Pradesh and others^ held as under: In the considered opinion of this Court, withholding the amount for which the petitioner is legitimately entitled is nothing but depriving the petitioner. Due to illegal action of non-payment of the amounts promptly by clearing the bills submitted by the 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. •21) 2021 Lawsuit (AP)390 4 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. 22) A larger bench of the Hon’ble Apex Court in Secretary, Irrigation Department, Government of Orissa and others V. G.C.Roy opinied as extracted hereunder: 24) “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. ” 25) 5. This Court has observed that though the works were completed long back and the bills were approved in the year 2022, 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 on “first done first paid” basis. 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: i) The respondents are directed to clear the bills submitted by the petitioner and release an amount of Rs. 13,88,405/- in favour of the 5 petitioner along with interest on the said amount as per the entitlement vide the judgment of the Division Bench of this Court in Writ Appeal No.724 of 2021 and batch of cases dated 12.10.2023, within four (4) weeks from the date of receipt of a copy of this order. 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/- K. TATA RAO DEPUTY REGISTRAR //TRUE COPY// SECTION OFFICER To, 1. The Principal Secretary, Irrigation and Command Area Development Department, State of Andhra Pradesh, Secretariat, Velagapudi, Amaravathi. 2. The Principal Secretary, Department of Finance and Planning, State of Andhra Pradesh, Secretariat, Velagapudi,..Amaravathi. 3. The Chief Engineer, Krishna Delta System, Vijayawada. Krishna Guntur 4. The Superintending. Engineer, Irrigation Circle, Guntur. Guntur District. 5. The Executive Engineer, Drainage Division, Repalle. Guntur District. 6. The Dy. Executive Engineer, Drainage Sub-Division, Repalle. Guntur District. 7. One CC to Sri Mallikharjunarao Rudra, Advocate [OPUC] 8. Two CCs to GP for Irrigation and CAD, High Court of A.P. at Amaravati[OUT] 9. Two CC’s to GP for Finance and Planning, High Court of A.P. at Amaravati[OUT] 10. Three CD Copies. ssb \ HIGH COURT DATED: 17/04/2025 ORDER WP.No.8914 of 2024 DISPOSING OF THE W.P. WITHOUT COSTS > (