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2026 DAILYLAW 1948 (AP)

C V NARAYANA REDDY v. THE STATE OF ANDHRA PRADESH

WP/3667/2026 · 2026-05-03

Maheswara Rao Kuncheam

body2026

Judgment text

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1 APHC010060602026 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) MONDAY, THE FOURTH DAY OF MAY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE MAHESWARA RAO KUNCHEAM WRIT PETITION NO: 3667 OF 2026 Between: C.V.Narayana Reddy, Aged 46 years, S/o. C.P.Veera Reddy, R/o. 87/956-4, Plot No -70, Telecom Nagar, Kurnool, Kurnool District, Andhra Pradesh - 518002 ...Petitioner AND 1. The State of Andhra Pradesh, Rep by its Principal Secretary , Government AP Tourism and Cultural Department Secretariat Velagapudi, Amaravathi, Guntur District-522237 2. The State of Andhra Pradesh, Rep.by its Special Chief Secretary, Department of Finance, Secretariat, Velagapudi, Amaravathi, Guntur District- 522237 3. The Andhra Pradesh Tourism Development Corporation Limited, Rep by its Vice Chairman and Managing Director, Stalin Corporate, 5th Floor Near CGO Complex Industrial States, Autonagar, Vijayawada -520007. 4. The District Collector and Chairman, District Tourism Counsel, Kurnool, Kurnool District-518001 5. The Superintendent Engineer, A.P.Tourism Development Corporation, Vijayawada, NTR District. 520001 6. The Chief Executive Officer, AP CFMS Office 6th Floor C-Block, Anjaneya Towers, Ibrahimpatnam, Krishna District,512456 ...Respondents 2 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 an appropriate Writ Order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the Respondents in withholding the payments of pending amount of Rs.98,42,320/- (Ninety Eight Lakhs Forty-Two Thousand Three Hundred and Twenty Rupees only) for the year 2021-2022, even after finalizing the bills, payable to the petitioner in relation to the works Development of Billasurgam Caves in K.K. Kottala Village of Betamcherla Mandal in Kumool District as bad, illegal, arbitrary, improper, unjust and against the Article 21 of Constitution of India and Consequently direct the Respondents to forthwith release the payments of Rs.98,42,320/- (Ninety Eight Lakhs Forty-Two Thousand Three Hundred and Twenty Rupees only) of above bill amount along with 12percentage interest without any more delay 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 to direct the respondents to release and pay the amounts of Rs.98,42,320/- (Ninety Eight Lakhs Forty-Two Thousand Three Hundred and Twenty Rupees only) release the payments of the bill amount along with 12percenrtage interest, pending disposal of the writ petition and pass Counsel for the Petitioner: THATHIREDDY ASHOK SRIVASTAVA Counsel for the Respondents: GP FOR TOURISM Counsel for the Respondents:SRINIVASULA REDDY VAJRALA SC FOR APTDC Ltd Counsel for the Respondents:GP FOR FINANCE PLANNING The Court made the following order: 3 THE HONOURABLE SRI JUSTICE MAHESWARA RAO KUNCHEAM WRIT PETITION No: 3667 of 2026 ORDER: The instant writ petition has been filed by the petitioner under Article 226 of Constitution of India seeking the following main prayer: “….to issue an appropriate Writ Order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the Respondents in withholding the payments of pending amount of Rs.98,42,320/- (Ninety Eight Lakhs Forty-Two Thousand Three Hundred and Twenty Rupees only) for the year 2021-2022, even after finalizing the bills, payable to the petitioner in relation to the works Development of Billasurgam Caves in K.K. Kottala Village of Betamcherla Mandal in Kumool District as bad, illegal, arbitrary, improper, unjust and against the Article 21 of Constitution of India and Consequently direct the Respondents to forthwith release the payments of Rs.98,42,320/- (Ninety Eight Lakhs Forty-Two Thousand Three Hundred and Twenty Rupees only) of above bill amount along with 12% per annum interest without any more delay and to pass ….” 2. The sum and substance of the writ petition is that the petitioner challenged the inaction of the respondents in not releasing the pending amounts even after completion of the entire works entrusted to him. 3. Heard Sri T.Ashok Srivastava, learned counsel for the petitioner and as well as Sri K.Srinivasula Reddy, learned Standing Counsel for A.P.Tourism Development Corporation Ltd., appearing for the respondents. 4 4. Learned counsel for the petitioner, while reiterating the averments made in the writ affidavit, submits that in view of non-release of the admitted amounts, the petitioner is facing multifarious problems, physically and fiscally. Hence, he submits that the release of the amounts is just and essential. 5. On the other hand, learned Standing Counsel for the respondents Corporation, placed a copy of the written instructions dated 04.05.2026 issued by the concerned authority of the Corporation and submits that sufficient time may be granted for paying the balance amount of Rs.98,42,320/- (Rupees Ninety Eight Lakhs Forty Two Thousand Three Hundred and Twenty only) to the petitioner. He further submits that during the process of work, an amount of Rs.1,07,90,488/- as 1st part bill was paid to the Contractor. And the balance amount payable to the contractor is Rs.98,42,320/-. Due to the non-available of budget and the financial year FY 2025-26 Closures, the CFMS portal is not allowing uploading the bills. Once the budget allocation is done the bill will be uploaded in CFMS portal. 6. Since it is not in dispute that the petitioner completed the works and has yet to receive payment, as evident from the written instructions dated 04.05.2026 of the concerned respondent Corporation authority, this Court finds the respondents’ failure to pay is unjustified. However, taking into consideration of the ground realities to settle the admitted amounts, the respondents are granted rational time to settle the dues. 5 7. Recently the Hon’ble Supreme Court of India in Utkal Highways Engineers and Contractor Vs Chief General Manager and Others1, vividly held in the following manner. “8. Be that as it may, the High Court has not dealt with the merits of the writ petition. Moreover, it is not an inviolable rule that no money claim can be adjudicated upon in exercise of writ jurisdiction…..” 8. It is apt to note that a mere financial incapacity / poor financial conditions, as stated by the respondent Corporation, for non-releasing of amounts after getting the services of the petitioner, cannot be a ground. 9. In view of the above stated legal position, the respondent Corporation, being the instrumentality of the ‘State’ within the meaning of Article 12 of the Constitution of India, is bound to release the amount for the undisputed works done by the petitioner, without any further delay. A mere financial incapacity or paucity of funds cannot be a valid defence for non-fulfilment of such statutory obligations, more particularly, after getting the works from the petitioner. 10. So far as the interest portion is concerned, the Hon’ble Division Bench of this Court in the case of Managing Director & Ors. Vs. Sree Balaji Constructions & Ors. (Writ Appeal No.60 of 2025) held that the award of interest on delayed payments was unsustainable in the absence of specific terms and conditions of the relevant agreement between the parties, but in the instant case, the learned counsel for the petitioner has not touched on the said 1 (2025) SCC Online SC 1400 6 point. However, the Hon’ble Division Bench in similar circumstances made it clear that the parties are at liberty to pursue their claims in respect of the interest portion before an appropriate forum in accordance with the Law. 11. In the light of the above legal position, coupled with the fact that the liability for the undisputed works was admitted by the respondents, the writ petition is disposed of with a direction to the respondents to release the amount of Rs.98,42,320/- (Rupees Ninety Eight Lakhs Forty Two Thousand Three Hundred and Twenty only) payable to the petitioner, within a period of nine (09) months, from the date of receipt of copy of this order. It is needless to say that the petitioner is at liberty to approach the appropriate civil court with regard to interest, if so advised. There shall be no order as to costs. Miscellaneous petitions pending, if any, shall stand closed. ____________________________________ JUSTICE MAHESWARA RAO KUNCHEAM Date: 04.05.2026 Rns 7 THE HON’BLE SRI JUSTICE MAHESWARA RAO KUNCHEAM WRIT PETITION No.3667 of 2026 Date: 04.05.2026 Rns