Research › Search › Judgment

High Court of Andhra Pradesh · body

2026 DAILYLAW 23613 (AP)

M/s GR Constructions v. THE STATE OF AP

WP/22881/2025 · 2026-02-01

Tarlada Rajasekhar Rao

body2026

Judgment text

Extracted from the PDF above. The PDF is authoritative.

APHC010437582025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3330] MONDAY, THE SECOND DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION No.22881 of 2025 Between: 1. M/S GR CONSTRUCTIONS, REPRESENTED BY ITS PROPRIETOR, KATTA GANGADHARA RAO S/O LATE MAHALAKSHMAIAH, AGED ABOUT 65 YEARS, OCC- CONTRACTOR, OFFICE AT 104, MIGLL A, OPPOSITE CORMANDEL GATE, VISAKHAPATNAM, VISAKHAPATNAM DISTRICT ...PETITIONER AND 1. THE STATE OF AP, REP. BY ITS PRINCIPAL SECRETARY, ROADS AND BUILDINGS DEPARTMENT, SECRETARIAT BUILDINGS, VELAGAPUDI, GUNTUR DISTRICT. 2. THE CHIEF ENGINEER RAND B, SH AND MD, A.P ROAD DEVELOPMENT CORPORATION, 5TH FLOOR, STATE HOD BUILDING, BESIDE MUNICIPAL INDOOR STADIUM, PUNNAMA THOTA, VIJAYAWADA - 520010, 3. THE SUPERINTENDING ENGINEER RANDB, VISAKHAPATNAM, VISAKHAPATNAM DISTRICT 4. THE EXECUTIVE ENGINEER, RAND B DIVISION, ANAKAPALLE, ANAKAPALLE DIVISION 5. THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, FINANCE (FMU-REVENUE) DEPARTMENT, SECRETARIAT BUILDINGS, VELAGAPUDI, GUNTUR DISTRICT. ...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 OF MANDAMUS declaring the action 2 of the Respondents herein, in withholding the payment of and Part bill. Net Amount of Rs. 1,64,49,340/- (Gross Rs. 1,74,36,852/-) under CFMS No 2025-473180 and 2nd and Final Bill, Net Amount of Rs. 19,07,100/- (Gross Rs. 29,30,840/-) under CFMS No 2025-1010501 (Total Net Amount Rs. 1,83,56,440/-, Total Gross Amount Rs. 2,03,67,692/-), even after finalizing the bills payable to the petitioner in relation to the work i.e Improvements to the riding surface to Yelamanchili - Gajuwaka road from Km 11/2 to 13/0, Km 24/0 to 27/0 Km 29/0 to 33/2 in Anakapalli District vide L.S Agreement C.R.No. 35/2023-2024, Dt. 13.02.2024 is questioned, as the same is illegal and arbitrary apart from violative of Articles 14, 16, 19 and 300-A of The Constitution of India and consequently direct the respondents to consider for payment of 1st and Part bill. Net Amount of Rs. 1,64,49,340/- (Gross Rs. 1,74,36,852/-) under CFMS No 2025-473180 and 2nd and Final Bill, Net Amount of Rs. 19,07,100/- (Gross Rs. 29,30,840/-) under CFMS No 2025-1010501 (Total Net Amount Rs. 1,83,56,440/-, Total Gross Amount Rs. 2,03,67,692/-) with an interest 24percentage per annum for the delayed amount to the petitioner in respect of execution of above-mentioned work. Counsel for the Petitioner: 1. SURESH KUMAR REDDY KALAVA Counsel for the Respondent(S): 1. GP FOR ROADS BUILDINGS 2. GP FOR FINANCE PLANNING The Court made the following: 3 ORDER: The present Writ Petition is filed under Article 226 of the Constitution of India for the following relief: "……to issue a WRIT OF MANDAMUS declaring the action of the Respondents herein, in withholding the payment of and Part bill. Net Amount of Rs.1,64,49,340/- (Gross Rs.1,74,36,852/-) under CFMS No 2025-473180 and 2nd and Final Bill, Net Amount of Rs.19,07,100/- (Gross Rs.29,30,840/-) under CFMS No.2025-1010501 (Total Net Amount Rs.1,83,56,440/-, Total Gross Amount Rs.2,03,67,692/-), even after finalizing the bills payable to the petitioner in relation to the work i.e., Improvements to the riding surface to Yelamanchili - Gajuwaka road from Km 11/2 to 13/0, Km 24/0 to 27/0 Km 29/0 to 33/2 in Anakapalli District vide L.S Agreement C.R.No. 35/2023-2024, Dt. 13.02.2024 is questioned, as the same is illegal and arbitrary apart from violative of Articles 14, 16, 19 and 300-A of The Constitution of India and consequently direct the respondents to consider for payment of 1st and Part bill. Net Amount of Rs.1,64,49,340/- (Gross Rs.1,74,36,852/-) under CFMS No.2025-473180 and 2nd and Final Bill, Net Amount of Rs.19,07,100/- (Gross Rs.29,30,840/-) under CFMS No 2025- 1010501 (Total Net Amount Rs.1,83,56,440/-, Total Gross Amount Rs.2,03,67,692/-) with an interest 24 per centage per annum for the delayed amount to the petitioner in respect of execution of above-mentioned work and pass such other orders……" 2. The 4th respondent-Executive Engineer, R&B Division, Anakapalle, has filed counter and at paragraph No.5, it is stated that bill amount of Rs.1,83,56,440/- was uploaded, vide bill No.2025-473180 dated 16.04.2025 with RBI and awaited for fund clearance and soon after the funds clearance was obtained by the respondents, the said amount will be deposited in the account of the petitioner herein. 4 3. 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 counter that they will pay the amount to the petitioner soon after clearance of funds. Once the work executed by the petitioner to the respondents is admitted and the payment due to the petitioner is not disputed by the respondents, there was hardly no 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. 4. In The D.F.O., Sough Kheri And Ors. Vs. Ram Sanehi Singh reported in (1971) 3 SCC 864, 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 of the Constitution of India, 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. 5. In view of the above, the present Writ Petition is disposed of with the following directions: (a) The respondents are directed to clear the due amount to the petitioner within a period of three (3) months from the date of receipt of a copy of this order. 5 (b) Sum due to the petitioner would mean, the sum arrived after statutory deductions. If there is any dispute regarding statutory recoveries, the petitioner is at liberty to communicate/interfere with the respondents. (c) 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, Interlocutory Applications pending, if any, shall stand closed. __________________________________ JUSTICE TARLADA RAJASEKHAR RAO Date: 02.02.2026 siva 6 THE HON’BLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION No.22881 of 2025 Date: 02.02.2026 siva