APHC010363002024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) TUESDAY, THE TWENTY SEVENTH DAY OF JANUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION NO: 18487 OF 2024 Between: 1. D. Mohan Babu, S/o. D. Haridas, Age 44 years, occ: Contractor, R/o. D.No.2-111-a, Perur Village, Ramagiri Mandal, Sri Sathya Sai District. ...Petitioner AND 1. The State of Andhra Pradesh, Rep. by its Chief Secretary, Secretariat, Velagapudi, Guntur District. 2. The State of Andhra Pradesh, Rep. by its Principal Secretary, Roads and Buildings Department, Secretariat, Velagapudi, Guntur District. 3. The State of Andhra Pradesh, Rep. by its Finance Secretary, State of Andhra Pradesh, Secretariat, Velagapudi, Guntur District. 4. The Engineer in Chief, RandB (MDRS), Vijayawada. 5. The District Collector, Sri Sathya Sai District at Puttaparthi. 6. The Superintending Engineer, (Agreement Authority) R and B Circle, Ananthapuramu District at Ananthapuramu 7. The Executive Engineer, Dharmavaram Division, Dharmavaram, Sri Satya Sai District. 8. The Divisional Accounts Officer, Dharmavaram Division (R and B) Department, Dharmavaram, Sri Sathya Sai District. 2 9. The Pay and Account Officer, Ananthapuramu, Ananthapuramu District. ...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 a Writ of mandamus or any other appropriate writ order or direction declaring the action of the respondents in (with holding the payment of proposed amount) / (not releasing the payment of) Rs.1,37,41,583/- even after finalizing the bills, payable to the work for urgent repairs to the collapsed cause way at km 34/650-850 of Atmakur - Kurakulapalli upto State border road in Sri Sathya Sai District vide agreement No 91/2022-2023 dated 20.03.2023 under R & B department as per the agreement to the petitioner till today and causing heavy loss with interest even though the total works were completed as per the agreement as illegal and arbitrary and violation of Articles 14, 16 and 21 of the Constitution of India. Consequently direct the respondents to pay RS. 1,37,41,583/- along with 12 percent interest, the work for urgent repairs to the collapsed cause way at km 34/650-850 of Atmakur - Kurakulapalli upto State border road in Sri Sathya Sai District and pass other order. IA NO: 1 OF 2024 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 the proposed amount of Rs.1,37,41,583/- for execution and completion of works as per the agreement to the petitioner along with 12% interest forthwith, pending disposal of the writ petition and to pass other orders. IA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court 3 may be pleased to grant Leave for filing of the Counter Affidavit in WP.No.18487 of 2024 and pass Counsel for the Petitioner: N ASWARTHA NARAYANA Counsel for the Respondents: GP FOR ROADS BUILDINGS Counsel for the Respondents: GP FOR REVENUE Counsel for the Respondents: GP FOR GENERAL ADMINISTRATION Counsel for the Respondents: GP FOR FINANCE PLANNING The Court made the following: 4 THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION No.18487 of 2024 ORDER:- The present writ petition is filed under Article 226 of the Constitution of India for the following reliefs: “…to issue order or direction declaring the action of the respondents in (with holding the payment of proposed amount) / (not releasing the payment of) Rs.1,37,41,583/- even after finalizing the bills, payable to the work for urgent repairs to the collapsed cause way at km 34/650-850 of Atmakur - Kurakulapalli upto State border road in Sri Sathya Sai District vide agreement No.91/2022-2023 dated 20.03.2023 under R & B department as per the agreement to the petitioner till today and causing heavy loss with interest even though the total works were completed as per the agreement as illegal and arbitrary and violation of Articles 14, 16 and 21 of the Constitution of India. Consequently direct the respondents to pay Rs.1,37,41,583/- along with 12 percent interest, the work for urgent repairs to the collapsed cause way at km 34/650-850 of Atmakur - Kurakulapalli upto State border road in Sri Sathya Sai District and pass such other order or orders.…” 2. Heard Sri M/s. N.Aswartha Narayana, learned counsel for petitioner and learned Government Pleader for respondents. 3. Precisely, the writ petition is filed challenging the action of the respondents in withholding an amount of Rs.1,37,41,583/- (Rupees one crore thirty seven lakhs forty one thousand five hundred and eighty three) for the works executed by the petitioner vide agreement No.91/2022-23 dated 20.03.2023. 4. Learned counsel for respondent No.7 filed counter-affidavit and it is stated after execution of work as per agreement conditions, the bill 5 was recorded in the Measurement Books and passed LS-1st and final for a Gross Amount of Rs.1,43,35,955/- (Rupees one crore forty three lakhs thirty five thousands nine hundred and fifty five only) and Net Amount of Rs.1,27,46,180/- (Rupees one crore twenty seven lakhs forty six thousand one hundred and eighty only) respectively vide M- Book No.51 and M-Book No.6597A. The total value of work done by the petitioner gross amount of Rs.1,43,35,955/- including tender percentage, seigniorage charges, NAC at 0.1% and GST 12%. Further, it is submitted that there are statutory recoveries like IT 1%, CGST 1%, SGST 1%, Labour cess 2%, seigniorage charges, NAC 0.1%, FSD 2.5% all put together to the amount of Rs.15,89,775/- shall be recovered from the above final bill. As such he payable to the petitioner is Rs.1,27,46,180/-. Further, the LS-1st and final bill for an amount of Rs.1,43,35,955/- is pending in Division Office for want of budget release order and the contractor is not entitled to receive the interest. Respondents are not disputed the amount due to the petitioner for Rs.1,43,35,955/-. 5. Insofar as the interest component, the respondents contended that the petitioner should approach the appropriate forum, relying on the order of the Division Bench in W.A.791 of 2022 dated 26.04.2022. The Division Bench affirmed the Single Judge’s order, directing the petitioner to seek relief regarding interest from the appropriate forum. In a catena of cases, this Court had held that where dispute revolves 6 round questions of fact, the matter ought not be entertained under Article 226 of the Constitution of India. 6. In the present case, the respondents have not disputed the payment due to the petitioner for the work executed and the respondents have manifested in their written instructions that they will pay the amount to the petitioner. Once the work executed by the petitioner to the respondents is admitted, the payment due to the petitioner is not disputed by the respondents, there was hardly any need for this Court to refer the matter to any forum or for arbitration for passing an arbitral award assuming that any condition in the agreement to that extent. Hence, this Court directs the respondents to pay the admitted amount to the petitioner. 7. In The D.F.O., South Kheri And Ors. vs Ram Sanehi Singh1, the Hon’ble Apex Court held that when a State decides not to pay the dues with mala fide, with ulterior motives or arbitrarily or when the State avoids payment of the dues with mala fide, with ulterior motives, arbitrarily or when the State discriminates, while making payment dues, such a decision of the State not to pay or such an act of the State of not paying its dues cannot be said to be wholly beyond the reach of Article 226, for asking the writ Court to do is to force the State to act in accordance with its constitutional obligation by adhering to the letter and spirit of Articles 14 and 21 of the Constitution of India. 1 (1971) 3 SCC 864 7 8. In view of the above, the present Writ Petition is disposed of with following directions: (a) The respondents are directed to clear the due amount to the petitioner within a period of eight (08) weeks from the date of receipt of a copy of this order. (b) With regard to interest, the petitioner is at liberty to approach appropriate forum. There shall be no order as to costs. As a sequel thereto, miscellaneous petitions pending, if any, shall stand closed. ___________________________________ JUSTICE TARLADA RAJASEKHARA RAO Date: 27.01.2026 RMR 8 129 THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION No:18487 OF 2024 Date: 27.01.2026 RMR