1 HN, J W.P.No.29986_2024 APHC010573122024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3457] TUESDAY,THE TWENTY THIRD DAY OF DECEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION NO: 29986/2024 Between: 1. VISWATEJA CONSTRUCTIONS, D. NO. 81-21-12, REP. BY ITS MANAGING PARTNER MEDAPATI VENKATA SATYANARAYANA REDDY VENKATESWARA NAGAR, RAJAMAHENDRAVARAM, EAST GODAVARI DISTRICT, 2. MEDAPATI VENKATA SATYANARAYANA REDDY, S/O. SATTIREDDY, AGED 55 YEARS, OCC. CONTRACTOR, R/O. D. NO. 2-82, UBALANKA VILLAGE, RAVULAPALEM MANDAL, DR. B R AMBEDKAR KONASEEMA DISTRICT. ...PETITIONER(S) AND 1. THE STATE OF AP, REP. BY ITS PRINCIPAL SECRETARY, MUNICIPAL ADMINISTRATION DEPARTMENT, SECRETARIAL, VELAGAPUDI, AMARAVATHI, GUNTUR DISTRICT 2. THE RAJAMAHENDRAVARAM MUNICIPAL CORPORATION, REP BY ITS COMMISSIONER, RAJAMAHENDRAVARAM EAST GODAVARI DISTRICT ...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 tomay be pleased to issue a Writ, Order or Direction more particularly one in the nature of WRIT OF MANDAMUS or any other appropriate writ or direction declaring the action of the 2nd respondent 2 HN, J W.P.No.29986_2024 withhold an amount of Rs.9,01,732-00 and confiscation of EMD and FSD even after completed the works and issued proceedings vide T S No 38/SE/2021-22E3 dated 16-03-2023 for closing the Contract works i. e. Widening and Development of East Railway Station road from Morampudi road to Railway school in 16th Division 7.5 mtrs width through the Agreement No 17 /2022-23/EEI dated 08- 07-2022 as illegal, arbitrary and violative of Art 14 and 21 of Constitution of India and consequently direct the respondent authorities to pay the with held amount of Rs.9,01,732-00 towards clause 60 @ of APBSS the Petitioner with interest to release the EMD and FSD and to pass IA 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 may be pleased to direct the 2nd respondent to release the withheld amount of Rs.9,01,732-00 to the Petitioner with interest and aldo EMD and FSD immediately with respect to the proceedings vide T S No. 38/SE/202122E3 dated 16-03-2023 for closing the Contract and pass pending disposal of the above writ petition and to pass IA 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 pleased to receive the counter copies on record by allowing the leave petition in the above writ petition Counsel for the Petitioner(S): 1. DWARAMPUDI SAVITHRI Counsel for the Respondent(S): 1. DWARAMPUDI SAVITHRI Counsel for the Respondent(S): 1. A S C BOSE (SC FOR MUNICIPAL CORPORATIONS AP) 2. GP MUNCIPAL ADMN AND URBAN DEV AP 3 HN, J W.P.No.29986_2024 ORDER: 1. The petitioner is aggrieved by the action of the respondents in withholding an amount of Rs.9,01,732/-, which was deposited towards EMD and FSD in pursuance of the agreement dated 08.07.2022. The petitioner entered into an agreement with the respondent No.2 for the widening and development of the East Railway Station Road from Morampudi Road to Railway School in the 16th Division. 2. It is submitted that the petitioner could not complete the work within the stipulated time for various reasons. However, the petitioner completed nearly 30% of the work before the contract was terminated. Subsequently, the respondents entrusted the remaining work to another agency and got the work completed through their contractor. 3. It is submitted that the petitioner was not initially paid for the work completed and, therefore, filed W.P.No.11576 of 2023 seeking finalization of the bills and release of the EMD and FSD. It is submitted that the respondent authorities released an amount of Rs.37,62,305/- towards the work completed, but failed to release the EMD and FSD amounts. It is further submitted that the respondents are not empowered to deduct or withhold the EMD and FSD amounts after having closed the contract. 4. The learned Standing Counsel appearing for respondent No.2 submits that Clause 26.2 of the General Conditions of Contract clearly entitles the principal employer to forfeit the earnest money deposit in the event the 4 HN, J W.P.No.29986_2024 contractor neglects to complete the work or delays the progress of work. The respondents have invoked the said clause and forfeited the EMD and FSD. 5. It is further submitted that, in pursuance of the orders of this Court, the respondent authorities have finalized the bills for the extent of work completed and also released the corresponding payments. However, insofar as the prayer of the petitioner seeking release of the EMD and FSD amounts is concerned, the petitioner cannot, as a matter of fundamental right, claim the same by filing the present writ petition. It is also submitted that both the petitioner and the respondents are bound by the terms and conditions of the contract, and Clause 26.2 makes it amply clear that the respondents are justified in forfeiting the EMD and FSD amounts if the contractor is found to have violated the conditions of the contract. 6. Heard the learned counsel for the petitioner and the learned Standing Counsel appearing for respondent No.2. Perused the record. 7. The grievance of the petitioner is with regard to the action of the respondents in withholding or forfeiting the EMD and FSD amounts. The learned counsel appearing for the petitioner fairly submits that the bills have been cleared; however, once the bills were cleared, there ought to have been no occasion for the respondent authorities to withhold the EMD and FSD amounts. 5 HN, J W.P.No.29986_2024 8. Clause 23 of the General Conditions of Contract prescribes the methodology for statement of disputes. The petitioner would have to invoke the said clause and seek redressal of the grievance, if any, with regard to the action of the respondents in forfeiting the EMD and FSD amounts. 9. With these observation, the writ petition is closed, leaving it open to the petitioner to invoke the Clause 23 relating to settlement of disputes between the petitioner and the principal employer. There shall be no order as to costs. Pending miscellaneous petitions, if any, shall stand closed. ___________________ JUSTICE HARINATH.N Date:23.12.2025 NKA 6 HN, J W.P.No.29986_2024 153 THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION NO: 29986 of 2024 Date: 23.12.2025 NKA