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2025 DAILYLAW 46765 (AP)

M/s. Somu Constructions v. The State of Andhra Pradesh

WP/3419/2024 · 2025-08-13

Venkateswarlu Nimmagadda

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Judgment text

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APHC010059862024 IN THE HIGH COURT OF ANDHRA PRADESH ATAMARAVATI (Special Original Jurisdiction) THURSDAY,THE FOURTEENTH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 3419 OF 2024 Between: M/s. Somu Constructions,, Rep. by its T. Somu Sundar Reddy, S/o. Gopala Reddy, aged 49years, R/o. Ubalanka, Ravulapalem, East Godavari District. ...Petitioner AND 1. The State of Andhra Pradesh, Rep. by its Principal Secretary, The Panchayath Raj Department, Secretariat Building, Velagapudi Village, Guntur District. 2. The Commissioner, Panchayath Raj and Rural Development, 1st Floor, Vijayawada, Nakkal Road, Suryaraopet, Old Charitasri Hospital Krishna District. 3. The State of Andhra Pradesh, Rep. by its Principle Secretary, Finance Department, A.P. Secretariat Building, Velagapudi, Amaravathi 4. The District Collector, Eluru, Eluru District. 5. The Superintending Engineer, PRI Circle, Eluru, Eluru District. 6. The Executive Engineer, PRI Division, Eluru, Eluru District. ...Respondents Petition under Article 226 of the Constitution of India is filed 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 ona'•X the nature of Writ of Mandamus declaring the action of the resp9nc[p^ts in not releasing the payments for the work executed by the petSion^’rlunder the Construction of Rural Roads (SCP) Grant for the work Providing internal roads and drains in SC locality of Ponangi Village of Eluru Mandal Eluru District. The Agreement No./2017-18 dated. 05.06.2017 for an amount of Rs.7,79,970/- with ISpercent per annum interest is illegal, arbitrary and contrary to law, violation of principles of natural justice and consequently direct the respondents to release an amount of Rs.7,79,970/- with ISpercent Per annum to the petitioner in respect of the execution of aforementioned work forthwith. lA NO: 1 OF 2024 is filed praying that in the circumstances stated in the affidayit filed in support of the petition, the High Court may be pleased to direct the respondent authorities to release an amount of Rs.7,79,970/- with interest at 18% for the works executed by the petitioner under the Construction of Rural Roads (SCP) Grant for the work Providing internal roads & drains in SC locality of Ponangi Village of Eluni Mandal Eluru District the Agreement NO./2017-18 dated. 05.06.2017 for an amount of Rs.7,79,970/-. 05.06.2017 for an amount of Rs.7,79,970/-. Petition under Section 151 , CPC Counsel for the Petitioner: M/S MARELLA RADHA Counsel for the Respondent Nos.1,2,4: GP FOR PANCHAYAT RAJ RURALDEV(AP) Counsel for the Respondent No.3: GP FOR FINANCE PLANNING (AP) Counsel for the Respondent Nos.5 & 6: SRI M SUDHIR, SC FOR GRAM PANCHAYAT The Court made the following order: 1 NV,J W.P.No.3419 of 2024 APHC010059862024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3329] THURSDAY,THE FOURTEENTH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 3419/2024 Between: 1.M/S. SOMU CONSTRUCTIONS,, REP. BY ITS T. SOMU SUNDAR REDDY, S/0. GOPALA REDDY, AGED 49YEARS, R/0. UBALANKA, RAVULAPALEM, EAST GODAVARIDISTRICT. ...PETITIONER AND 1.THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL THE PANCHAYATH RAJ DEPARTMENT, GUNTUR SECRETARY, SECRETARIAT BUILDING, VELAGAPUDI VILLAGE, DISTRICT. PANCHAYATH RAJ AND RURAL 1.ST FLOOR, OLD CHARITASRI HOSPITAL, SURYARAOPET, 2.THE COMMISSIONER DEVELOPMENT, NAKKAL ROAD, DISTRICT. VIJAYAWADA, KRISHNA 3.THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPLE SECRETARY, FINANCE DEPARTMENT, A.P. SECRETARIAT BUILDING, VELAGAPUDI, AMARAVATHI 4.THE DISTRICT COLLECTOR, ELURU, ELURU DISTRICT. 5.THE SUPERINTENDING ENGINEER, PRI CIRCLE, ELURU, ELURU DISTRICT. 2 NV,J W.P.No.3419 of 2024 6.THE EXECUTIVE ENGINEER, PRI DIVISION, ELURU DISTRICT. ELURU ...RESPONDENT(S): 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 topleased to issue an appropriate writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the respondents in not releasing the payments for the work executed by the petitioner under the the Construction of Rural Roads (SCP) Grant for the work Providing internal roads and drains in SC locality of Ponangi Village of Eluru Mandal Eluru District. The Agreement No./2017-18 dated. The Agreement No./2017-18 dated. 05.06.2017 for an amount of Rs.7,79,970/- with ISpercent per annum interest is illegal, arbitrary and contrary to law, violation of principles of natural justice and consequently direct the respondents to release an amount of Rs.7,79,970/- with ISpercent Per annum to the petitioner in respect of the execution of aforementioned work forthwith and to pass 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 respondent authorities to release an amount of pleased to direct the Rs.7,79,970/- with interest at 18% for the works executed by the petitioner under the Construction of Rural Roads (SCP) Grant for the work Providing internal roads & drains in SC locality of Ponangi Village of Eluni Mandal Eluru NO./2017-18 dated. 05.06.2017 for an amount of District the Agreement Rs.7,79,970/- and to pass Counsel for the Petitioner: 1.MARELLARADHA Counsel for the Respondent(S): 1.GP FOR PANCHAYAT RAJ RURAL DEV (AP) 2.GP FOR FINANCE PLANNING (AP) The Court made the following: 1 NV,J W.P.No.3419 of 2024 % THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 3419 OF 2024 ORDER: The petitioner had been awarded the contract of work(s) under the subject scheme in Eluru District. After execution of the said contract, a final bill was prepared for an amount of Rs.7,79,970/- as per the sanctioned orders. As the payment of the said amount has not been made by the respondents, the petitioner has approached this Court by way of this writ petition. 1. It is the contention of the petitioner that even though the respondents admitted that the petitioner 'is entitled for payment of the aforesaid sum of money, no payment is being made. The petitioner contends that such non payment of money is clearly arbitrary and high-handed requiring the interference of this Court. 2. This Court, in various orders, including the judgment of a learned Single Judge of this Court dated 05.10.2021 in W.P.No.10038 of 2021 and batch had taken the view that such non-payment of dues is arbitrary and that such dues need to be cleared by the respondents at the earliest. 3. On the other hand, learned Government Pleader placed on record written instructions submitted by the Executive Engineer, PR PIU Division, Eluru dated 14.08.2025, admitting an amount of Rs.7,79,970/- payable to the 4. 2 NV,J W.P.No.3419 of 2024 % 4.^ petitioner and submits that, since the budget was not released by the Government, the bills were not paid to the petitioner. Soon after release of the budget by the Government, the bills will be paid to the petitioner. In view of the facts and circumstances submitted in the affidavit, and the directions of this Court in various cases and after hearing the submissions of learned counsel for the petitioner, this Writ Petition is disposed of with a direction to the respondents to release the amount of Rs.7,79,970/- to the petitioner, within a period of three (03) months from the date of receipt of a copy of this order. 5. As far as interest component is concerned, if there is any subsisting clause in the agreement/work order envisaging payment or non-payment of interest upon any amount which is due and payable, the same is binding upon both the parties. In the absence of any clause with regard to interest component in the agreement, the respondents are directed to release the amount along with the interest @ 6% per annum on delayed payment, in view of the judgment of the Hon’ble Division Bench of this Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023 if not paid. 6. 7. It is left open to the petitioner to agitate his claim for either differential amount or higher rate of interest, if any payable by the respondents, in appropriate forum. There shall be no order as to costs. an 3 NV,J W.P.No.3419 of 2024 8. Consequently, Miscellaneous Petitions, if any, pending in this Writ Petition shall stand closed. Sd/- B CHITTI JOSEPH DEPUTY REGISTRAR //TRUE COPY// SEC OFFICER To, The Panchayath Raj Department, 1. The Principal Secretary Secretariat Building, Velagapudi Village, Guntur District. Panchayath Raj and Rural Development, 1st 2. The Commissioner Old Charitasri Hospital Nakkal Road, Suryeraopet Floor, Vijayawada, Krishna District. 3. The Principle Secretary Building, Velagapudi, Amaravathi Finance Department, A.P. Secretariat 4. The District Collector, Eluru, Eluru District. 5. The Superintending Engineer, PRI Circle, Eluru, Eluru District. PRl Division, Eluru, Eluru District. 6. The Executive Engineer 7. One CC to Sri. Marella Radha, Advocate [OPUC] GP For Panchayat Raj Rural Dev (AP), High Court of 8. Two CCs to Andhra Pradesh [OUT] 9. Two CCs to Pradesh [OUT] One CC to Sri M Sudhir, SC for Gram Panchayat [OPUC]. GP For Finance Planning (AP), High Court of Andhra 10. 11. Two CD Copies. AL HIGH COURT DATED: 14/08/2025 2 ■ :'"■ 7m ^ . Curreoi oeciion .■x m] ■m <3 ★X ORDER WP NO. 3419 OF 2024 DISPOSING OF THE W.P. WITHOUT COSTS