APHC010032762026 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3331] WEDNESDAY,THE TWENTY EIGHTH DAY OF JANUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE SUBBA REDDY SATTI WRIT PETITION NO: 2160/2026 Between: 1. M/S. SRINIVASA ENGINEERING AND CONSTRUCTION COMPANY, SPECIAL CLASS CONTRACTOR, D.NO. 14-79, SREE PLAZA, (SBI BUILDING), MAIN ROAD, BRUNDAVANA GARDENS, GUNTUR -522 006. REP. BY ITS MANAGING PARTNER MR. G.SRINIVASA RAO. ...PETITIONER AND 1. THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, PANCHAYAT RAJ AND RURAL DEVELOPMENT DEPARTMENT, SECRETARIAT, VELAGAPUDI, GUNTUR DISTRICT, A.P-522238. 2. THE ENGINEERINCHIEF, RURAL WATER SUPPLY AND SANITATION DEPARTMENT VASUDHA SHELTERS, 5TH FLOOR, C BLOCK, NEAR LIC COLONY, SAIPURAM COLONY, GOLLAPUDI, VIJAYAWADA -521 225. 3. THE CHIEF ENGINEERLL, RURAL WATER SUPPLY AND SANITATION DEPARTMENT, VASUDHA SHELTERS, 1ST FLOOR, C BLOCK, NEAR LIC COLONY, SAIPURAM COLONY, GOLLAPUDI, VIJAYAWADA -521 225. 4. THE SUPERINTENDING ENGINEER, RURAL WATER SUPPLY AND SANITATION CIRCLE, GUNTUR, A.P-522002. 5. THE EXECUTIVE ENGINEER, RURAL WATER SUPPLY AND p. 2 SRS,J SANITATION DIVISION NARASARAOPETA, A.P-522601 ...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 to 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 @1percent of the bills paid 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 Agreement No. /2023-24, Dt.29-12-2023 in respect Mandal wise packaging of works for Providing DWF through 100percent FHTCs to 31 Habitation of Rompicherla Mandal of Palnadu District and consequently to direct the respondents not to deduct the labourcess from the bills payable to the petitioner in Agreement No. /2023-24, Dt.29-12-2023 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 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 not to deduct the labour cess from the bills of the petitioner in Agreement No. /2023-24 Dt.29-12-2023 in respect Mandal wise packaging of works for “Providing DWF through 100% FHTCs to 31 Habitation of Rompicherla Mandal of Palnadu District” pending dispose of the above Writ Petition and pass Counsel for the Petitioner: 1. P L NARASIMHA RAO Counsel for the Respondent(S): 1. GP FOR PANCHAYAT RAJ RURAL DEV The Court made the following: p. 3 SRS,J ::ORDER :: Heard Sri P.L.Narasimha Rao, learned counsel for the petitioner, Sri P.Rajesh Kumar, learned Assistant Government Pleader for Panchayat Raj and Rural Development, appeared for the respondents 1 to 5. 2. The above writ petition was filed by a construction company represented by its Managing Partner, to declare the action of respondents 4 and 5 in deducting the labour cess @ 1% on the bills payable to the petitioner, at the instance of the respondents 1 to 3, as illegal and arbitrary and in contravention of Memo No.636/Reforms-A1/2008 dated 08.06.2011, the Building and Other Construction Workers’ Welfare Cess Act, 1996 and the Rules made thereunder and also as per Agreement No…/2023-24 dated 29.12.2023. 3. The petitioner, a Special Class (Civil) Contractor, entered into an agreement dated 29.12.2023 with respondent No.4 for ‘Providing DWF through 100% FHTCs to 31 Habitation of Rompicherla Mandal of Palnadu District’, for an estimated cost of Rs.2925.30 Lakhs. The grievance of the petitioner is that respondents 4 and 5 are deducting labour cess at 1% of the value of the work executed, though labour cess and other taxes are not made part of the agreement, dated 29.12.2023. 4. Today, when the matter is taken up for admission, learned counsel for the petitioner as well as learned Assistant Government Pleader submitted that the issue involved in this writ petition is squarely covered by an order dated p. 4 SRS,J 20.09.2023 passed in W.P.No.16156 of 2020 and batch. The operative portion of the common order reads thus: “16. 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 the 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.” 5. Given the facts and circumstances of the case, the Writ Petition is disposed of, in terms of para 16 of W.P.No.16156 of 2020 and batch. 6. Registry is directed to attach a copy of the common order dated 20.09.2023, passed in W.P.No.16156 of 2020 and batch. No order as to costs. As a sequel, pending miscellaneous petitions, if any, shall stand closed. ___________________________ JUSTICE SUBBA REDDY SATTI Date: 28.01.2026 IKN p. 5 SRS,J 149 THE HONOURABLE SRI JUSTICE SUBBA REDDY SATTI WRIT PETITION NO: 2160 OF 2026 Date: 28.01.2026 IKN