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2025 DAILYLAW 45188 (AP)

KMR CONSTRUCTIONS v. THE STATE OF ANDHRA PRADESH

WP/5194/2025 · 2025-04-21

Sumathi Jagadam

body2025

Judgment text

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IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) TUESDAY, THE TWENTY SECOND DAY OF APRIL TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SMT JUSTICE SUMATHI JAGADAM WRIT PETITION NO: 5194 OF 2025 Between: KMR Constructions, Rep. by its Managing Partner, Sri K. Madhusudhana Reddy, S/o. Late Malakonda Reddy, Aged about 56 years, R/o. Pulimi Street, Balajinagar, Nellore District ...PETITIONER AND 1. The State of Andhra Pradesh, Rep. by its Principal Secretary, Irrigation Department, Secretariat, Velagapudi, Guntur District. 2. The State of Andhra Pradesh, Rep. by its Principal Secretary to Government, Department of Finance and Planning, Secretariat, Velagapudi, Amaravathi, Guntur District. 3. The Executive Engineer, Water Resources Department, Drainage Division, Nellore, Nellore District. 4. The Assistant Executive Engineer, Drainage Section no. 1 ,AllurNeilore, Nellore 5. The Deputy Executive Engineer, Drainage Sub-Division no.3,AI Nellore, Nellore District. ur ...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, order or direction, more particularly one in the nature of Writ of Mandamus declaring the action of the respondent authorities in not releasing an amount of Rs. 12,76,129/- to the petitioner for the execution of works. Vide Agreement No. 75/0& M/DN/2019-20 dated 13.02.2020, Law and against the Principles of Natural the Public Policy and to respectively as arbitrary, illegal, contrary to ' Justice and against the Norms of issue consequential direction directing the payable to the petitioner with i-a respondent authorities to release the amounts an interest at 18%fannum. if lA NO: 1 OF 2n9.fi 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 respondent authorities to release 12,76,129/- to the petitioner for the execution of works. an amount of Rs. Vide Agreement No. respectively, pending disposal of 75/0&M/DN/2019-20, dated 13.02.2020 the above writ petition. Counsel for the Petitioner: SRI VENKAT SAILENDRA G Counsel for the Respondent Nos.1, 3 to 5: GP FOR IRRIGATION &CAD Counsel for the Respondent No.2: GP FOR FINANCE AND The Court made the following: ORDER PLANNING APHC010097382025 COURT OF ANDHRA PRADESH at AMARAVATI (Special Original Jurisdiction) THE TWENTY SECOND DAY OF APRIL TWO THOUSAND AND TWENTY FIVE PRESENT honourable SMT justice SUMATHl JAGADAM WRIT PETITION NO: 5194/2025 IN THE HIGH [3459] HE'-' TUESDAY THE Between: ...PETITIONER Kmr Constructions AND ...RESPONDENT(S) The State Of Andhra Pradesh and Others Counsel for the Petitioner: 1 .VENKAT SAILENDRA G Counsel for the Respondent(S): 1.GP FOR IRRl AND CAD The Court made the following ORDER: filed under Article 226 of the Constitution of The present writ petition is India seeking the following relief; appropriate writ, order or direction, more particularly one in the Writ of Mandamus declaring the action of the respondent authorities 12,76,129/- to the petitioner for the ...to issue an nature of in not releasing an amount of Rs. Agreement No. 75/0 and M/DN/2019-20 dated arbitrary, illegal, contrary to Law and against the execution of works. Vide 13.02.2020,respectively as of Natural Justice and against the Norms of the Public Policy and to direction directing the respondent authorities to release Principles Issue consequential amounts payable to the petitioner with an interest at 18 percent annum the V and to pass such other order circumstancesof the case. ” or orders may deem fit and proper in the 2. In spite of adjourning the matter, the counter affidavit. respondents have not filed their 3. The case of the petitioner is that the petitioner has participated tender process and the 5'" respondent has petitioner vide agreement No.75 O & M/DN/2019-20, execution of work relating to Desilting to Pillavagu minor drain from Km 0.000 to 4.000 and Lateral drain from Km 0.000 Mandal of SPSR Nellore District. The 5 respondent has issued quality control certificate books and passed final bill for in the entered into an agreement with the dated 13.02.2020, for to 0.700 in Isakapalli village in Allur petitioner has completed the work. The and also measurement an amount of Rs.12,76,129/-. 4. Learned counsel for the petitioner submits borrowed amounts from third parties to interest. Though the first and final bills that the petitioner has execute the work and is paying huge were passed in the year 2020, the bills amount is not yet paid to the petitioner even after lapse of five years. The learned counsel for the petitioner further submits that in similar circumstances this Court in S. Srinivas Vs. State of Andhra Pradesh under; and others^ held as -21) In the considered opinion of this Court, withholding the amount for which the petitioner is legitimately entitled i.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 2021 Lawsuit (AP)390 '■'^4 feed and see the welfare of his family properly and he could not make payments 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. to 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) This Court has observed that though the works were completed long back and the bills were passed in the year 2020, 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. 5. 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; 6. i) The respondents are directed to clear the bills submitted by the petitioner and release an amount of Rs.12,76,129/- 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/- U.SRI DEVI ASSISTANT REGISTRARS //TRUE COPY// S FFICER To, 1. The Principal Secretary, Irrigation Department, State of Andhra Pradesh, Secretariat, Velagapudi, Guntur District. 2. The Principal Secretary to Government, Department of Finance and Planning, State of Andhra Pradesh, Secretariat, Velagapudi, Amaravathi, Guntur District. 3. The Executive Engineer, Water Resources Department, Drainage Division, Nellore, Nellore District. 4. The Assistant Executive Engineer, Drainage Section no. 1 ,AllurNellore Nellore 5. The Deputy Executive Engineer, Drainage Sub-Division no.3,Aliur, Nellore, Nellore District. 6. One CC to Sri Venkat Sailendra G, Advocate [OPUC] 7. Two CCs to GP for Irrigation and CAD, High Court of A.P. at Amaravati[OUT] 8. Two CC’s to GP for Finance and Planning, High Court of A.P. at Amaravati[OUT] 9. Three CD Copies. ssb HIGH COURT DATED:22/04/2025 ORDER WP.No.5194 of 2025 DISPOSING OF THE W.P. WITHOUT COSTS