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High Court of Andhra Pradesh · body

2025 DAILYLAW 8530 (AP)

V SIVA SUNIL KUMAR REDDY v. The State of Andhra Pradesh,

WP/4965/2025 · 2025-04-01

Sumathi Jagadam

body2025

Judgment text

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APHC010092832025 IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) TUESDAY, THE FIRST DAY OF APRIL TWO THOUSAND AND TWENTY FIVE [3459] PRESENT THE HON'BLE SMT. JUSTICE SUMATHI JAGADAM WRIT PETITION No.4965 OF 2025 Between: V. Siva Sunil Kumar Reddy --- Petitioner and The State of A.P., Rep. by its Principal Secretary, Irrigation and Command Area Development Department, Secretariat, Velagapudi, Amaravati, Guntur District and 4 others --- Respondents Counsel for the petitioner : Sri Petluri Naga Raju Counsel for the respondents : G.P for Irrigation & CAD G.P for Finance and Planning The Court made the following ORDER: This Writ Petition, under Article 226 of the Constitution of India, is filed by the petitioner seeking the following relief: “………..to issue a writ, order, or direction more particularly one in the nature of WRIT OF MANDAMUS declaring the action of the respondents in not paying bills amount to the petitioner for the works executed by him “O & M – Category „A‟ – 2020-21 (Khariff) – Embankment Repairs to South Mopur New Tank in JS,J WP No.4965/2025 2 Nellore Rural Mandal of SPSR Nellore District” for an amount of Rs.35,30,769/- with interest, as illegal, arbitrary, malafide, against to the principles of natural justice, contrary to law and in violation of Articles 14, 21 and 19(1)(g) of the Constitution of India and consequently direct the respondents to pay the approved bills amount along with the interest to the petitioner in the interest of justice and to pass such other order or orders…………” 2. The case of the petitioner, in brief, is that he has participated in the tender process and stood as successful bidder. The 3rd respondent has entered into an agreement with the petitioner vide agreement No.22 SE/2020-21, dated 28.10.2020, for execution of the work of O & M – Category „A‟ – 2020-21 (Khariff) – Embankment Repairs to South Mopur New Tank in Nellore Rural Mandal of SPSR Nellore District, during the year 2020-2021. The petitioner has completed the work. The respondent authorities have issued the Quality Control Certificate on 30.01.2025 and Measurement Books were issued on 26.01.2025 for an amount of Rs.35,30,769/-. 3. Learned counsel for the petitioner submits that the petitioner has borrowed amounts from third parties to execute the work and is paying huge interest. Though the work is completed long back, the bills are not yet processed. Learned counsel for the petitioner further submits that in JS,J WP No.4965/2025 3 similar circumstances, this Court in S. Srinivas v. State of Andhra Pradesh and others1 held as extracted hereunder: “21) In the considered opinion of this Court, withholding the amount for which the petitioner is legitimately entitled is nothing but depriving the petitioner. Due to illegal action of non-payment of the amounts promptly by clearing the bills submitted by the petitioner after execution of works, the petitioner could not feed and see the welfare of his family properly and he could not make payments to his employees/workers and he could not make payments to the material suppliers and he has to pay interests for the debts incurred by him for execution of works. Due to this situation, petitioner’s respect and dignity in the society will be deteriorated. 22) As such this Court holds that withholding the amount, for which the petitioner is legally entitled, is illegal, arbitrary, and unjust and violative of Article 21 of the Constitution of India. 23) …………….. 24) A larger bench of the Hon’ble Apex Court in Secretary, Irrigation Department, Government of Orissa and others V. G.C.Roy opined as extracted hereunder: “A person deprived of the use of money to which he is legitimately entitled has right to be compensated for the deprivation, call it by any name. It may be called interest, compensation or damages”. 25) The High Court of Andhra Pradesh in J. Devendra Reddy V Kakatiya University and another held that withholding of the amount payable to the petitioner for the contract works, constitutes patent arbitrariness on the part of the respondents.” 1 2021 Lawsuit (AP) 390 JS,J WP No.4965/2025 4 4. This Court has observed that though the works were completed long back and the bills were passed, the respondents have not released the amounts so far on the ground of insufficiency of funds. Since there is no dispute with regard to the work and the bills amount, the respondents should pay the bills amount on “first done first paid” basis. 5. In view of my foregoing discussion and the law laid down by this Court in S. Srinivas (supra), the Writ Petition is allowed, with the following directions: i) The respondents are directed to clear the bills submitted by the petitioner and release the amount of Rs.35,30,769/- within six (6) weeks from today with interest at 12% p.a. ii) The interest shall be computed from the date of expiry of one (1) month from the date of submission of the bills by the petitioner till the date of payment. There shall be no order as to costs. As a sequel, miscellaneous petitions pending, if any, shall stand closed. __________________________ JUSTICE SUMATHI JAGADAM Date: 01.04.2025 DSH