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2025 DAILYLAW 5872 (AP)

VELKO INFRATECH PROJECTS PVT LTD. v. The State of A.P. and 4 other

WP/2369/2019 · 2025-08-18

Venkateswarlu Nimmagadda

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Judgment text

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APHC010051892019 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3329] TUESDAY,THE NINETEENTH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 2369/2019 Between: 1. VELKO INFRATECH PROJECTS PVT LTD., REP BY ITS MANAGING DIRECTOR, VELAGAPUDI RAMA RAO, S/O.VEERA RAGHAVAIAH, AGED 70, R/O. H.NO. 59-10-2, GAYATRI NAGAR, VIJAYAWADA ...PETITIONER AND 1. THE STATE OF A P AND 4 OTHER, REP. BY ITS PRINCIPAL SECRETARY, PANCHAYAT RAJ AND RURAL DEVELOPMENT, SECRETARIAT, VELAGAPUDI, AMARAVATI, GUNTUR DISTRICT. 2. THE ENGINEERINCHIEF, RWS AND SANITATION, A.P. RURAL WATER SUPPLY AND SANITTATION (APRWSSP), VASUDHA SHELTERS 3RD FLOOR C BLOCK, NEAR LIC COLONY, SAIPURAM COLONY, GOLLAPUDI, VIJAYAWADA-521 225. 3. THE CHIEF ENGINEERII, RWS AN SANITATION, A.P. RURAL WATER SUPPLY AND SANITATION(APRWSSP), VASUDHA SHELTERS 3RD FLOOR C BLOCK, NEAR LIC COLONY, SAIPURAMCOLONY, GOLLAPUDI, VIJA .AWADA-521 225. 4. THE SUPERINTENDING ENGINEER, RWS AND SANITATION, GUNTUR CIRCLE, A.P. RURAL WATER SUPPLY AND SANITATION (APRWSSP), GUNTUR, GUNTUR DISTRICT 5. THE EXECUTIVE ENGINEER, RWS AND DIVISION, GUNTUR, GUNTUR DISTRICT. 2 ...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 toto issue a writ, order or direction more particularly one in the nature of writ of mandamus declaring the action of the respondents 4 and 5 in deducting the labour cess @ 1 percent of the bills payable to the petitioner at the instance of respondents 1 to 3 as illegal, arbitrary and in contravention of Memo No.636/Reforms-A1/2008 dated 08-06-2011 and in contravention of Building and other Construction Workers' Welfare Cess Act, 1996 and the Rules made there under in circle agreement No 40/2016-17, dt.17-10-2016, in respect of providing CPWS Scheme to Pedakurapadu and other habitations in Pedakurapadu constituency in Guntur District and consequently direct the respondents not to deduct the labour cess from the bills payable to the petitioner without including the same as required to be included in terms of the Memo No.636/Reforms-A1/2008 dated 08-06-2011 and pass IA NO: 1 OF 2019 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 not to deduct the lanur cess from the bills of the petitioner in respect of Circle Agreement.No.40/2016-17, dt.17-10-2016, in respect of providing CPWS Scheme to Pedakurapadu and other habitations in Pedakurapadu constituency in Guntur District, pending disposal of the above said writ petition and pass Counsel for the Petitioner: 1. DEVI PRASAD MANGALAPURI Counsel for the Respondent(S): 1. GP FOR PANCHAYAT RAJ RURAL DEV (AP) The Court made the following: 3 HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 2369/2019 ORDER:- This writ petition is filed under Article 226 of the Constitution of the India seeking the following reliefs:- “to issue a writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the respondent Nos.4 and 5 in deducting the labour cess @ 1 % of the bills payable to the petitioner at the instance of respondent Nos.1 to 3 as illegal, arbitrary and in contravention of Memo No.636/Reforms-A1/2008 dated 08- 06-2011 and in contravention of Building and other Construction Workers' Welfare Cess Act, 1996 and the Rules made there under in circle agreement No.40/2016-17, dated 17.10.2016, in respect of providing CPWS Scheme to Pedakurapadu and other habitations in Pedakurapadu constituency in Guntur District and consequently direct the respondents not to deduct the labour cess from the bills payable to the petitioner without including the same as required to be included in terms of the Memo No.636/Reforms-A1/2008 dated 08-06-2011 and pass such other order. 2. Heard learned counsel for the petitioner and the learned Government Pleader for the respondents. 3. Learned counsel for petitioner straight away takes this Court through the order, dated 20.09.2023, passed by this Court in W.P.No.16156 of 2020 & Batch as the facts and circumstances of this case are similar to this case. 4. Learned Government Pleader does not refute the submission made by the learned counsel for the petitioner. 4 5. Relevant paragraph of the order passed in W.P.No.16156 of 2020 & Batch is extracted hereunder: “Therefore, the writ petitions are disposed of with the following directions: a. The respondents shall verify the bills of the petitioners and if the corresponding amount is included in the estimates, the respondents can deduct amount as prescribed at the rate of 1% towards Labour Cess. b. Upon verification, if the respondents found that the corresponding amount is not included in the estimates, the respondent shall not take steps to deduct the amount/recover the amount from the petitioners towards Labour Cess.” 6. In view of the same, for the reasons alike in the aforesaid order, this Writ Petition is also disposed of with the following directions: a. The respondents shall verify the bills of the petitioner and if the corresponding amount is included in the estimates, the respondents are entitled to deduct amount as prescribed at the rate of 1% towards Labour Cess. b. Upon verification, if the respondents found that the corresponding amount is not included in the estimates, the respondent shall not take steps either 5 to deduct the amount or to recover the amount from the petitioner bills towards Labour Cess. There shall be no order as to costs. 7. Registry is directed to attach a copy of the order dated 20.09.2023 passed by this Court in W.P.No.16156 of 2020 & Batch to this order. As a sequel miscellaneous application, pending, if any, shall also stand closed. ________________________________ VENKATESWARLU NIMMAGADDA, J 19.08.2025 TTPPSS 6 179 HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION.NO.2369 OF 2019 19.08.2025 TTPPSS