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2026 DAILYLAW 11372 (AP)

K.Leela Chandra Reddy v. The State of Andhra Pradesh

WP/18470/2026 · 2026-09-22

Venkateswarlu Nimmagadda

body2026

Judgment text

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APHC010342872026 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) WEDNESDAY, THE 23rd DAY OF SEPTEMBER 2026 PRESENT THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 18470 OF 2026 Between: 1. K.Leela Chandra Reddy,, S/o. Krishna Reddy, Aged 47 years, Occ Contractor, R/o. D.No.18-1-13/A, Ramachandra Nagar, Tirupati, Chittoor District. ...Petitioner AND 1. The State of Andhra Pradesh, Rep. by Principal Secretary, Police Housing Corporation Department, Secretariat Buildings, Velagapudi, Amaravathi. 522 238 2. Andhra Pradesh Police housing Corporation Ltd, Rep.by its Vc and Managing Director, 6th Floor, AP Police Head Quarters, Mangalagiri, Guntur District. 522 503 3. State Project Director, RUSA and Commissioner of Collegiate Education, Government of Andhra Pradesh, Mangalagiri, Guntur District. 522 503 4. Sri Venkateswara University, Rep. by its Registrar, Tirupati, Chittoor District. 517 502 5. The Executive Engineer, Andhra Pradesh Police Housing Corporation Ltd, Kadapa, Kadapa District. 516 001 2 6. The General ManagerF, Andhra Pradesh Police Housing Corporation Limited, 6th Floor, AP Police Head Quarters, Adjacent AP Police Head Quarters, Mangalagiri, Guntur District. 522 503 7. The State of Andhra Pradesh, Rep. by Principal Secretary, Department of Finance and Planning Secretariat Buildings, Velagapudi, Amaravathi. 522 238 ...Respondents 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 a writ of mandamus or any other appropriate writ or direction declaring the action of the Respondents in withholding the payment of 8th and Final Bill amount even afterGross 1,70,52,621/- in net amount of Rs. 1,57,51,544/ finalizing the bills, payable to the petitioner in relation to the work i.e. Construction of Mens Hostel for Arts 8 and Science College in S.V. 1 University, Tirupati vide agreement No. MD/LS/TW- 11/32/2021-22, Dt28.06.2021, is questioned, as the same is illegal, arbitrary and consequently direct the respondents to consider for payment of amount 8th and Final Bill amount Gross 1,70,52,621/- in net amount of Rs. 1,57,51,544/- with interest 12percent per annum for the delayed amount to the petitioner in respect of execution of above-mentioned work forthwith and pass IA NO: 1 OF 2026 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 direct the respondents to consider for payment of 8 and Final Bill amount Gross 1,70,52,621/- in net amount of Rs. 1,57,51,544/- with interest @12% per annum for the delayed amount to the petitioner in respect of execution of work i.e. Construction of Mens Hostel for Arts & Science College 3 in S.V. University, Tirupati vide agreement No. MD/LS/TW-II/32/2021-22, Dt:28.06.2021, pending disposal of the Writ Petition and pass Counsel for the Petitioner: SURESH KUMAR REDDY KALAVA Counsel for the Respondents: GP FOR EDUCATION Counsel for the Respondents:DODDALA YATHINDRA DEV Counsel for the Respondents:GP FOR HOUSING Counsel for the Respondents:GP FOR FINANCE PLANNING The Court made the following order: 4 THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 18470 OF 2026 ORDER: 1. The petitioner had been awarded the contract of work(s) under the subject scheme in Chittoor District. After execution of the said contract, a final bill was prepared 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. 2. It is the contention of the petitioner that even though the respondents admitted that the petitioner is entitled for payment of the admitted amount, 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. 3. 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. 4. On the other hand, learned Standing Counsel has placed on record the written instructions dated 22.09.2026 issued by respondent No.6, wherein it is stated that the contractor claimed gross amount of Rs.1,70,52,621/- and net amount of rs.1,57,51,544/- is not correct. As per order, actual gross amount is Rs.1,68,38,925/- (including statutory deductions and Estt. Charges) and net 5 amount is Rs.1,55,54,152/-. Further, the interest on the pending bill is not admissible to the contractor. As per the agreement condition No.38.1, no omission by the executive engineer or the sub-divisional officer to pay the amount due upon certificates shall vitiate or make void the contract, nor shall the contractor be entitled to interest upon any guarantee fund or payments in arrears, nor upon any balance which may, on the final settlement of his account, found to be due to him. As per Claus 69 of A.P. Standard specification, the petitioner is not entitled to any interest on payment of arrears or any amount found to be due. The bill uploaded in CFMS portal and bill status is waiting for fund clearance by the Finance Department. The Finance Department is responsible for release of payment. 5. In view of the aforesaid directions of this Court in various cases and after hearing the submissions of learned counsel for the petitioner and the learned Standing Counsel for the respondents, this Writ Petition is disposed of, with a direction to the respondents to release the gross amount of Rs.1,68,38,925/- subject to statutory deductions if any to the petitioner, within a period of six (6) months from the date of receipt of copy of this order. No order as to costs. 6. As far as interest component is concerned, as per the agreement conditions 38.1 and Clause 69 of the A.P. Standard specifications, the petitioner is not entitled for any interest. 6 7. Consequently, Miscellaneous Petitions, if any, pending in this Writ Petition shall stand closed. ________________________________ VENKATESWARLU NIMMAGADDA, J Dated:23.09.2026 TPS 7 143 THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 18470 OF 2026 Dated:23.09.2026 TPS 8