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2025 DAILYLAW 45190 (AP)

M/s Sri Ayyappa Constructions v. The State of Andhra Pradesh,

WP/3457/2025 · 2025-04-16

Sumathi Jagadam

body2025

Judgment text

Extracted from the PDF above. The PDF is authoritative.

■ -A / IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) THURSDAY ,THE SEVENTEENTH DAY OF APRIL j TWO THOUSAND AND TWENTY FIVE I PRESENT THE HONOURABLE SMT JUSTICE SUMATHI JAGADAM WRIT PETITION NO: 3457 OF 2025 Between: M/s Sri Ayyappa Constructions, Rep. its Managing Partner, Hare Rama Reddy S/o L.C.S Reddy, Aged about 58 years, R/o Anepudi Village, Doravari Satram Mandal, Tirupati District. ...PETITIONER AND 1. The State of Andhra Pradesh,, Rep. by its PrI. Secretary, Water Resources Department, AP Secretariat, Velagapudi, Amaravathi, Guntur District. 2. The State of Andhra Pradesh,, Rep. by its PrI. Secretary, Department of Finance and Planning, AP Secretariat, Velagapudi, Amaravathi, Guntur District. 3. The Superintending Engineer,, Irrigation Circle, Nellore. 4. The Executive Engineer,, W.R.D., Nellore South Division, Gudur. ...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 a writ, order or direction more particularly one in the nature of WRIT OF MANDAMUS declaring the action of the respondents in non-payment an amount of Rs. 51,11,561/- in total due even after finalizing the bills, payable to the petitioner after the successful completion of the execution of works i.e. FDR 12/2023- Temporary Restoration to the Chillakur big tank in Vaddipalem(V) in Pellakur Mandal of Tirupati District, Vide L.S. Agreement No. 04 SE/2024-25, dated 21.08.2024., duly approved by the respondents, as illegal, arbitrary, unjust, unreasonable and violative of fundamental rights guaranteed to the Petitioner under Articles 14 and 21 of the Constitution of India and consequently direct the respondents to release an amount of Rs. 51,11,561/- towards the works executed by the petitioner along with 12percent interest per annum . 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 the amount of Rs. 51,11,561/- in total due for the last year even after finalizing the bills, payable to the petitioner after the successful completion of the execution of works i.e., FDR 12/2023- Temporary Restoration to the Chillakur big tank in Vaddipalem(V) in Pellakur Mandal of Tirupati District, Vide L.S. Agreement No. 04 SE/2024-25, dated 21.08.2024. Counsel for the Petitioner(s):SRI. SIVAPRASAD REDDY VENATI Counsel for the Respondents: GP FOR IRRI AND CAD GP FOR FINANCE AND PLANNING THE COURT MADE THE FOLLOWING ORDER: APHC010066002025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) 050 [3459] THURSDAY. THE SEVENTEENTH DAY OF APRIL TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SMT JUSTICE SUMATHI JAGADAM WRIT PETITION NO: 3457/2025 Between: M/s Sri Ayyappa Constructions ...PETITIONER AND The State Of Andhra Pradesh and Others ...RESPONDENT(S) Counsel for the Petitioner: 1.SIVAPRASAD REDDY VENATI 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 a writ, order or direction more particulady one in the nature of Writ Of Mandamus declaring the action of the 2 respondents in nonpayment an amount of Rs.51,11,561/- in total due even after finalizing the bills payable to the petitioner after the successful completion of the execution of works i.e., FDR 12/2023-Temporary Restoration to the Chillakur big tank in VaddIpalemV in Pellakur Mandal of Tirupati District Vide LS. Agreement No.04 SE/2024-25 dated 21.08.2024 duly approved by the respondents as Illegal, arbitrary, unjust, unreasonable and violative of fundamental rights guaranteed to the Petitioner under Articles 14 and 21 of the Constitution of India and consequently direct the respondents to release an amount of Rs.51,11,561/- towards the works executed by the petitioner along with 12% interest per annum and to pass...." In spite of adjourning the matter, the respondents have not filed their counter affidavit. \ \ 2. 3. The case of the petitioner is that the petitioner is a contractor and the respondents 3 and 4 has entered into an agreement with the petitioner vide L.S. Agreement No.04 SE/2024-2025, dated 21.08.2024, for execution of work of FDR 12/2023-Temporary Restoration to the Chillakur big tank in Vaddipalem (V) in Pellakur Mandal of Tirupathi District, during the year 2024-2025. The petitioner has completed the work. The 4*^ respondent has issued quality control certificate and also issued measurement books and passed final bill for an amount of Rs.42,59,069/-. 4. Learned counsel for the petitioner submits that the petitioner has borrowed amounts from third parties to execute the work and is paying huge interest. Though the first and final bills were passed 3 2024, the bills amount is not yet paid to the petitioner even after lapse of one year. 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) 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 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”. 25) The High Court of Andhra Pradesh in J.Devendra Reddy V Kakatiya University and another held that withholding of the ^ 2021 Lawsuit (AP)390 amount payable to the patent arbitrarines petitioner for the son the part of the contract works, respondents. ” constitutes 6. This Court has completed long back respondents have observed that and the bills though the works were in the year 2024, the on the ground of regard to the respondents should '^ere passed i not released the arnounts so far insufficiency of funds, execution of work the bills amount Since there i and the bills IS no dispute with amount, the pay on “first done first paid” basis. 7. fn view of the laid down by this Petition is disposed of. wi foregoing discussion and in the light of the supra, the Writ law Court in s. Sno/Vas case referred with the following directions: i) The respondents petitioner and release petitioner within three are directed to clear an amount of Rs. (03) months from of this order with interest at 120/0 p.a. foe bills submitted 42,59,069/- i - foe date of by the - in favour of the receipt of a copy ") The interest uionth from the date shall be computed from the date of submission of the date of payment. There shall be Of expiry of bitt by the petitioner one till the no order as to costs. 5 As a sequel, miscellaneous petitions pending, if any, shall stand closed. Sd/- U. SRIDEVI ASSISTANT REGISTRAR //TRUE COPY// SECTION OFFICER To, 1. The Principal Secretary, Water Resources Department, Secretariat Buildings, Velagapudi, Guntur District.(SPECIAL MESSENGER) 2. The Principal Secretary, Finance and Planning Department, Secretariat Buildings, Velagapudi, Guntur District.fSPECIAL MESSENGER) 3. The Superintending Engineer,, Irrigation Circle, Nellore. 4. The Executive Engineer,, W.R.D., Nellore South Division, Gudur.((Nos. 3 & 4 by RPAD)) 5. One CC to SRI. SIVAPRASAD REDDY VENATI Advocate [OPUC] 6. TwoCCsto GP FOR IRRI AND CAD ,High Court Of Andhra Pradesh. [OUT] 7. Two CCS to GP FOR FINANCE AND PLANNING ,High Court Of Andhra Pradesh. [OUT] 8. Three CD Copies ' - HIGH COURT DATED: 17/04/2025 ORDER WP.No.3457 of 2025 DISPOSING THE WRIT PETITION WITH NO COSTS