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2026 DAILYLAW 25101 (AP)

SUGUNA CONSTRUCTIONS COMPANY v. THE STATE OF ANDHRA PRADESH

WP/28404/2024 · 2026-03-01

Subba Reddy Satti

body2026

Judgment text

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APHC010544922024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3331] MONDAY, THE SECOND DAY OF MARCH TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE SUBBA REDDY SATTI WRIT PETITION NO: 28404/2024 Between: 1. SUGUNA CONSTRUCTIONS COMPANY, REP. BY MANAGING DIRECTOR, B.YOGESWARA REDDY, S/O. YERRASWAMY REDDY, AGE 44 YEARS, R/O. D.NO.11-957, ARAVINDA NAGAR, ANANTAPURAMU. ...PETITIONER AND 1. THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, PANCHAYATH RAJ DEPARTMENT, A.P. SECRETARIAT BUILDING, VELAGAPUDI, AMARAVATHI. 2. THE STATE OF ANDHRA PRADESH, , REP. BY ITS PRINCIPAL SECRETARY, FINANCE DEPARTMENT, A.P. SECRETARIAT BUILDING, VELAGAPUDI, AMARAVATHI. 3. THE STATE OF ANDHRA PRADESH, REP BY ITS PRINCIPAL SECRETARY, AGRICULTURAL AND CO OPERATIVE DEPARTMENT, AP SECRETARIAT BUILDING, VELAGAPUDI, AMARAVATHI. 4. THE COMMISSIONER AND DIRECTOR OF AGRICULTURAL MARKETING, GUNTUR, GUNTUR DISTRICT. 5. THE CHIEF ENGINEER, PANCHAYAT RAJ CIRCLE, VIJAYAWADA, KRISHNA DISTRICT. 6. THE SUPERINTENDING ENGINEER, PANCHAYATI RAJ CIRCLE, KURNOOL, KURNOOL DISTRICT. Page 2 of 4 7. THE EXECUTIVE ENGINEER, PANCHAYATH RAJ PRI DIVISION, ADONI, KURNOOL DISTRIC ...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 an appropriate writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the respondents in not releasing the payments for the 4 road works executed by the petitioner under the Grant APAM (AMC) for execution of Work PACKAGE NO.APAM/KRNL/Alur/02, Consisting of 12 Road Works in Alur constituency of Kurnool District through the Agreement No. 2022-23 dated. 16.08.2022 for an amount of Rs.1,01,20,480/- is illegal, arbitrary and contrary to law and un constitution and violation of Article 14 of Constitution of India and consequently direct the respondent authorities to release an amount of Rs. 1,01,20,480/- with 18percent Per annum to the petitioner in respect of the execution of aforementioned work forthwith and to pass 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 respondent authorities to release an amount of Rs. 1,01,20,480/- with interest at 18% for the 4 works executed by the petitioner under the Grant APAM (AMC) for execution of Work Package "PACKAGE NO.APAM/KRNL/Alur/02, Consisting of 12 Road Works in Alur constituency of Kurnool District" through the Agreement No. 2022¬23 dated. 16.08.2022 for an amount of Rs. 1,01,20,480/- and to pass 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 may be pleased to grant leave to the respondent No.4 to file the counter affidavit 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 receive the counter affidavit copies on record by allowing die leave petition in the writ petition in the interest of justice and to pass Counsel for the Petitioner: p. 3 1. MARELLA RADHA Counsel for the Respondent(S): 1. GP FOR PANCHAYAT RAJ RURAL DEV 2. GP FOR FINANCE PLANNING 3. GP FOR AGRICULTURE The Court made the following: ORDER Heard Smt.Marella Radha, learned counsel for the petitioner and Sri P.Rajesh Kumar, learned Assistant Government Pleader for Panchayat Raj and Rural Development, Finance and Planning, Agriculture & Cooperation, for the respondents. 2. The above writ petition was filed to declare the action of the respondents in not releasing the payments for the 3 road works executed by the petitioner under the Grant APAM road (AMC) for execution of Work Package PACKAGE NO.APAM/KRNL/Alur/3, Consisting of 03 Road Works in Alur constituency of Kurnool District through the Agreement No. 2022-23 dated 16.08.2022 for an amount of Rs. 3,54,69,504/-, as illegal and arbitrary. 3. Counter affidavit was filed on behalf of the 7th respondent. It was pleaded that the Executive Engineer recorded M-Book and passed the pass order dated 09.10.2024 with regard to agreement No.-/2022-23 dated 16.08.2022. The gross amount of bill is Rs.1,07,70,121/- and after statutory deduction and QC Recoveries of Rs.6,49,641/-, the net amount payable to the petitioner is Rs.1,01,20,480/-. 4. A perusal of the counter affidavit of 7th respondent would disclose that the petitioner has executed the aforementioned works and the net amount payable to the petitioner, after statutory deductions is Rs.1,01,20,480/-. p. 4 5. Thus, as seen from the instructions there is no dispute regarding the execution of works and the petitioner’s entitlement for Rs.1,01,20,480/-. Since the amount payable is admitted and undisputed, the writ petition is maintainable. In M/s Utkal Highways Engineers and Contractors Vs. Chief General Manager & Ors1, it was held at Para No.8 as under: “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. Non-payment of admitted dues, inter alia, may be considered an arbitrary action on the part of respondents and for claiming the same, a writ petition may lie.Further, throwing a writ petition on ground of availability of alternative remedy after 10 years, particularly, when parties have exchanged their affidavits, is not the correct course unless there are disputed questions of fact which by their very nature cannot be adjudicated upon without recording formal evidence.”. 6. Given the counter affidavit filed by the 7th, the Writ Petition is disposed of directing the respondents to release an amount of Rs.1,01,20,480/- (Rupees One Crore One Lakh Twenty Thousand Four Hundred and Eighty only) payable to the petitioner regarding execution of the aforementioned work, within six (06) months from the date of receipt of the copy of this order. No order as to costs. As a sequel, pending miscellaneous petitions, if any, shall stand closed. ___________________________ JUSTICE SUBBA REDDY SATTI PVD 1 2025 SCC online SC 1400