APHC010039162025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3396] TUESDAY, THE NINETEENTH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE DR. JUSTICE VENKATA JYOTHIRMAI PRATAPA WRIT PETITION Nos. 2211 & 7975 OF 2025 Between: 1. THE AMARAVATI BOATING CLUB, REGD 54-1-18/1, 2ND FLOOR, PRASHANTI NAGAR, ITI ROAD, BEHIND LIC COLONY, VIJAYAWADA-520008, ANDHRA PRADESH REPRESENTED BY ITS PROPRIETOR/CEO BY NAME TARUN KUMAR KAKANI. ...PETITIONER AND 1. THE MANAGING DIRECTOR, AP STATE DISASTER MANAGEMENT AUTHORITY, GENIOUS JR TOWERS, KUNCHANAPALLI-522501, TADEPALLI, GUNTUR DISTRICT. 2. ADDITIONAL DIRECTOR GENERAL OF POLICE, APSP BNS AND APSDRF, MANGALAGIRI- 522502, GUNTUR DISTRICT. 3. THE STATE OF ANDHRA PRADESH, , REPRESENTED BY ITS PRINCIPAL SECRETARY, FINANCE DEPARTMENT, SECRETARIAT BUILDINGS, VELAGAPUDI, THULLUR MANDAL, GUNTUR DISTRICT ...RESPONDENT(S): Counsel for the Petitioner: 1. MULLAPUDI SATYANARAYANA Counsel for the Respondent(S): 1. GP FOR HOME 2. GP FOR FINANCE PLANNING The Court made the following: COMMON ORDER: Writ Petition No.2211 of 2025 is filed under Article 226 of Constitution of India with the following prayer for: “.... a Writ of Mandamus declaring the action of the respondents in not paying the compound interest with monthly rests at three times of the bank rate(3 into 6.75 percent equal to 20.25 percent ) notified by the Reserve Bank of India i.e., 45,75,065.00 (forty five lakhs seventy five thousand sixty 2 five only) on the supplied goods amount Rs.1,70,02,920/-(one crore seventy lakhs two thousand nine hundred and twenty only) for the period of 30.09.2023 to 26.01.2025 is an illegal, arbitrary and violative of Article 14 of the constitution of India and Section-15, 16 and 17 of the Micro, Small and Medium enterprises development Act, 2006 and consequently direct the respondents to pay an interest amount of Rs.45,75,065.00 (forty five lakhs seventy five thousand sixty five only) on the supplied goods amount of Rs. 1,70,02,920/- (one orore seventy lakhs two thousand nine hundred and twenty only) for the period of 30.09.2023 to 26.01.2025 and the balance amount of Rs.06,47,731.00 (six lakhs forty seven thousand seven hundred thirty one only) bill already uploaded to the CFMS portal.” Writ Petition No.7975 of 2025 is filed under Article 226 of Constitution of India with the following prayer for: “.... a Writ of Mandamus declaring the action of the respondents in not paying the prices of supplied tool kits (23 units for Rs.2,94,400.00), lifejackets (276 units for Rs.5,52,000.00) and life buoys (48 units for Rs.1,44,000.00) for strengthening of AP State Disaster Response Forces for total amount of Rs. 10,25,200/-(Ten lakhs twenty five thousand and two hundred only) is illegal, arbitrary and violative of Article 14 of the constitution of India and Section. 15, 16 and 17 of the Micro, Small and Medium enterprises development Act, 2006 and consequently direct the respondents to pay an amount of Rs.10,25,200/-(Ten lakhs twenty five thousand and two hundred only) with compound interest with monthly rests at three times of the bank rate(3 x 6.50percent -19.05percent) notified by the Reserve Bank of India as on today etc.” 2. Sri Mullapudi Satyanarayana, learned counsel for the Petitioner would submit that, Respondents have to pay an amount of Rs.10,25,200/- towards supply of tool kits, life jackets and life buoys by the Petitioner for AP State Disaster Response Forces, but they have not paid the said amount. Learned counsel would further submit that, earlier, the Petitioner herein filed W.P.No.8959 of 2024 before this Court for recovery of an amount of Rs.1,70,02,920/- towards the price of supplied inflatable rubber boards and out board motor and a Coordinate Bench of this Court vide Order dated 07.01.2025 closed the said petition with a direction to the Finance Secretary, Government of A.P to take necessary steps for clearance of the bill already 3 uploaded to the CFMS portal and to see that the amount is credited to the Petitioner. It is further submitted that subsequently, the Finance Department cleared the bill in part i.e., Rs.1,63,55,189/- on 17.01.2025 excluding the tax amount of Rs.6,47,731/-. Learned counsel would further submit that, as per the Work Order dated 07.01.2025, the Respondents have to pay the compound interest with monthly rests at three times of the bank rate i.e., Rs.45,75,065/- on the supplied goods amount of Rs.1,70,02,920/- and the balance amount of Rs.6,47,731/-. 3. Learned Assistant Government Pleader for Finance Planning, by way of counter, would submit that, as per the terms of the Agreement dated 25.04.2023, there is no mention of the interest to be given to the supplier on any late payment, except the bid value for a sum of Rs.1,70,02,920/- and the Respondents paid a net amount of Rs.1,63,55,189/- to the Petitioner after deduction of Rs.6,47,731/- towards taxes. Learned Assistant Government Pleader would further submit that the matter is squarely covered by the common judgment dated 02.12.2022 in Writ Appeal Nos.461 of 2022 and Batch passed by the Hon’ble Division Bench of this Court. 4. For ready reference, relevant para of the common judgment in W.A.Nos.461 of 2022 and batch is extracted hereunder: “………….. Award of interest, even where it is made admissible under the contract, depends on host of factors most of which are contentious between the parties. Different considerations also apply for awarding interest under the various enactments like Interest Act, 1978, CPC etc. Rates of interest are also subject to fluctuations/market conditions etc. and are matters of pleading and proof. It is always advisable to leave such relief to be considered by the appropriate forum when the agreement contains arbitration and/or a clause for filing a civil suit. But, in a case of this nature, where the agreement specifically 4 bars payment of interest on certain sums and the same has been agreed by the writ petitioners with eyes wide open after understanding the terms of the agreement, interest cannot be awarded de hors and contrary to clause 43 of the Conditions of Contract. These are clearly disputed questions of fact which cannot be decided in these writ proceedings. In our considered view, learned single Judge has committed a serious error of law by awarding interest to the writ petitioners on the sum allegedly due for payment, which is not permissible in the teeth of clause 43 of the Conditions of Contract. 22. Accordingly, all the writ appeals are allowed. The orders passed by the learned single Judge to the extent of award of interest at the rate of 12% p.a., which alone has been challenged in these writ appeals, are set aside. No order as to costs. Pending miscellaneous applications, if any, shall stand closed. 23. The opinions expressed in this judgment are for the disposal of these writ appeals only. This judgment will not preclude the writ petitioners from seeking any relief including interest in an appropriate proceeding before the proper forum.” 5. In the case on hand, as seen from the supply order in Lr.No.REV10- 12038/65/SDMA/2022, dated 25.04.2023, there is no mention about the interest to be paid to the Petitioner. In the absence of any clause about the rate of interest to be paid, the same cannot be awarded in this petition. Further, as per the contentions of the learned Assistant Government Pleader for Finance Planning, there is no amount due to be paid to the Petitioner. These are clearly disputed questions of fact which cannot be decided in these writ proceedings. 6. In view of the judgment referred to supra, and considering the submissions made, these Writ Petitions are disposed of giving liberty to the Petitioner to work out their remedies before appropriate forum. There shall be no order as to costs. As a sequel thereto, miscellaneous petitions, if any, pending shall stand closed. ________________________________________ Dr.JUSTICE VENKATA JYOTHIRMAI PRATAPA Date:19.08.2025 Dinesh 5 HON’BLE DR. JUSTICE VENKATA JYOTHIRMAI PRATAPA WRIT PETITION Nos. 2211 & 7975 OF 2025 Dt.19.08.2025 Dinesh