1 APHC010054842026 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: 3400 OF 2026 Between: M/s.Sri Sainath Constructions, Rep by its Managing Partner M. Ravindra Babu, S/o. Srinivasulu, Aged about 45 years, R/o. D No. 7-110 B, South Bypass Road, Sridevi Colony, Ongole, Prakasam District. ...Petitioner AND 1. The State of Andhra Pradesh, Rep. by its Principal Secretary to Government, Department of Finance and Planning, Secretariat, Velagapudi, Guntur District-522 238. 2. The State of Andhra Pradesh, Rep by its Special Chief Secretary to the Government Housing Department, Secretariat, Velagapudi, Guntur District- 522 238. 3. The Andhra Pradesh State Housing Corporation Limited, Rep. by its Managing Director, Plot No.11 and 12, behind BSNL Telephone Exchange, Auto Nagar, Vijayawada-520 007. 4. The District Collector, Rajamahendravaram, EG District-533 101. 5. The Project Director Housing, Rajamahendravaram, EG District-533 101. 6. The Superintending Engineer, Public Health, Rajamahendravaram-533 101. 7. The Executive Engineer, Public Health, Eluru-534 001. 8. The Executive Engineer, Public Health Division, Rajamahendravaram-533 101. 2 9. The Deputy Executive Engineer, Public Health Division, Rajamahendravaram-533 101 ...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 to issue an appropriate writ, order or direction, more particularly one in the nature of Writ of Mandamus declaring the action of the respondent authorities in not releasing an amount of Rs.12,29,319/- to the petitioner for the execution of works, Vide L.S. Agreement No. 27/2021-22, dated 30.04.2021, Supplemental Agreement II No. 73/2021-22, dated 06-08-2021 and Supplemental Agreement II No. 16/2022-23, dated 23-04-2022, respectively as arbitrary, illegal, contrary to Law and against the Principles of Natural Justice and against the Norms of the Public Policy and to issue consequential direction directing the respondent authorities to release the amounts payable to the petitioner with an interest at 18% per annum and to 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 respondent authorities to release an amount of Rs.12,29,319/- to the petitioner for the execution of work, vide L.S. Agreement No. 27/2021-22, dated 30-04-2021, Supplemental Agreement II No. 73/2021-22, dated 06.08.2021 & Supplemental Agreement II No. 16/2022-23, dated 23-04-2022, respectively, pending disposal of the above writ petition and to pass Counsel for the Petitioner: VENKAT SAILENDRA G Counsel for the Respondents: MALLIKHARJUNA MOORTHY K (SC FOR A.P HOUSING CORPORATION LIMITED) Counsel for the Respondents:GP FOR FINANCE PLANNING Counsel for the Respondents:GP MUNCIPAL ADMN AND URBAN DEV AP Counsel for the Respondents:GP FOR HOUSING The Court made the following order: 3 THE HONOURABLE SRI JUSTICE MAHESWARA RAO KUNCHEAM WRIT PETITION No: 3400 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 respondent authorities in not releasing an amount of Rs.12,29,319/- to the petitioner for the execution of works, Vide L.S. Agreement No. 27/2021-22, dated 30.04.2021, Supplemental Agreement II No. 73/2021- 22, dated 06-08-2021 and Supplemental Agreement II No. 16/2022-23, dated 23-04-2022, respectively as arbitrary, illegal, contrary to Law and against the Principles of Natural Justice and against the Norms of the Public Policy and to issue consequential direction directing the respondent authorities to release the amounts payable to the petitioner with an interest at 18% per annum 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 amounts even after completion of the entire works entrusted to him. 3. Heard learned counsel for the petitioner and Sri G.Venkata Sailendra as well as Sri K.Mallikharjuna Moorthy, learned Standing Counsel for A.P.State Housing Corporation Ltd., appearing for the respondents. 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 4 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 01.05.2026 issued by the concerned authority of the Corporation and submits that six months’ time may be granted for paying the admitted amount of Rs.12,29,319/- (Rupees Twelve Lakhs Twenty Nine Thousand Three Hundred and Nineteen Only) to the petitioner. 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 01.05.2026 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. 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…..” 1 (2025) SCC Online SC 1400 5 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 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.12,29,319/-(Rupees Twelve Lakhs Twenty Nine Thousand 6 Three Hundred and Nineteen Only) payable to the petitioner, within a period of three (03) 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.3400 of 2026 Date: 04.05.2026 Rns