M AND M CONSTRUCTIONS v. THE STATE OF ANDHRA PRADESH
WP/28596/2025 · 2025-10-15
Harinath N
body2025
DailyLaw.ai
[ 2025 DAILYLAW 46734 (AP) · dailylaw.ai ]
DailyLaw.ai
[ 2025 DAILYLAW 46734 (AP) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
-1- W.P. No.28596 OF 2025 Date of order:16.10.2025
APHC010548892025
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3457] THURSDAY,THE SIXTEENTH DAY OF OCTOBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION NO: 28596/2025 Between: M And M Constructions ...PETITIONER AND The State Of Andhra Pradesh and Others ...RESPONDENT(S) Counsel for the Petitioner:
1. SASANKA BHUVANAGIRI Counsel for the Respondent(S):
1. GP MUNCIPAL ADMN AND URBAN DEV AP
2. GP FOR FINANCE PLANNING The Court made the following:
-2- W.P. No.28596 OF 2025 Date of order:16.10.2025
THE HON’BLE SRI JUSTICE HARINATH.N WRIT PETITION No.28596 OF 2025
ORDER
1. Heard the learned counsel for the petitioner, the learned Government Pleader for the Municipal Administration & Urban Development, the learned standing counsel for the Municipal Corporation and the learned Government Pleader for Finance & Planning.
2. The petitioner was entrusted with various works. In compliance with the contractual requirement, the petitioner has deposited the Earnest Money Deposit (EMD). It is further submitted that the 8th respondent has released the bills payable to the petitioner and that the works were completed in the year 2023. It is also submitted that the petitioner has completed the work entrusted by the 8th respondent. However, the Earnest Money Deposit (EMD) and Final Security Deposit (FSD) amounts, which were initially deposited, have not yet been released. It is further submitted that the mandatory cooling period of two years has already elapsed and that in spite of the repeated requests, the respondents continue to withhold the release of the EMD amounts beyond the permissible cooling period. Due to the non release of EMD and pending bills, the petitioner has been facing severe financial difficulties.
-3- W.P. No.28596 OF 2025 Date of order:16.10.2025
3. In reply, the learned standing counsel for the 8th respondent submits that the EMD amounts remain with the Corporation and also submits that the 8th respondent would release the EMD and FSD shortly.
4. Be that as it may, with regard to the release of EMD and FSD amounts, the fact remains that once the cooling period has expired, the respondents cannot indefinitely retain such amounts. It is the bounden duty of the respondent authorities to ensure timely release of the amounts rightfully due to the contractor.
5. Taking into consideration the facts and submissions, this Court is of the opinion that the withholding of EMD and FSD amounts beyond the cooling period is unjustified. Accordingly, the 8th respondent is
directed to verify the EMD and FSD amounts retained with it and release the same to the petitioner within a period of six weeks from the date of receipt of a copy of this order.
6. Accordingly, the writ petition is disposed of at the stage of admission. No costs.
7. Miscellaneous petitions, if any, pending in this writ petition shall stand closed. ___________________ JUSTICE HARINATH.N BV