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2026 DAILYLAW 25128 (AP)

V S ENGINEERING (P) LIMITED v. THE STATE OF AP

WP/28196/2025 · 2026-01-30

Tarlada Rajasekhar Rao

body2026

Judgment text

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APHC010543922025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3330] SATURDAY,THE THIRTY FIRST DAY OF JANUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION NO: 28196/2025 Between: 1. V S ENGINEERING (P) LIMITED, SPECIAL CLASS CONTRACTOR REP BY ITS DIRECTOR VALLABHANENI SRINIVAS CHOWDARY, S/O V SARATH, AGED ABOUT 45 YEARS, OCC- CONTRACTOR, HAVING OFFICE AT D.NO. 7-1-19/5 FLAT NO.101, VAMSIRAMS JYOTHI BHOPAL, OPP COUNTRY CLUB, BEGUMPET HYDERABAD, TELANGANA. ...PETITIONER AND 1. THE STATE OF AP, REP. BY ITS PRINCIPAL SECRETARY, ROADS AND BUILDINGS DEPARTMENT, SECRETARIAT BUILDINGS, VELAGAPUDI, GUNTUR DISTRICT. 2. THE ENGINEERINCHIEF RANDB, MAJOR DISTRICT ROADS, VIJAYAWADA, KRISHNA DISTRICT. 3. THE DISTRICT COLLECTOR AND DISTRICT MAGISTRATE, GUNTUR, GUNTUR DISTRICT. 4. THE SUPERINTENDING ENGINEER, (RANDB) GUNTUR, GUNTUR DISTRICT. 5. THE EXECUTIVE ENGINEER, (RAND B) DIVISION, GUNTUR, GUNTUR DISTRICT. 2 6. THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, FINANCE 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 of the Respondents herein, in withholding the payment of LS Ft and Final bill an amount of Rs. 9,77,544/- even after finalizing the bills payable to the petitioner in relation to the work i.e.. Special Repairs to Madras - Culcutta road from Km 399.800 to 400.00 (L/s) in Guntur District in view of the of Visit of Shri Y.S. Jagan Mohan Reddy, HonTDle Chief Minister of Andhra Pradesh for distribution of Tractors and Harvesters to the farmers under FM Mega Mela II at Chuttugunta Centre on 02.06.2023, vide L.S. Agreement D.R. NO./2023-24, Dt.23.11.2023 is questioned, as the same is illegal and arbitrary apart from violative of Articles 14, 16, 19 85 300-A of The Constitution of India and consequently direct the respondents to consider for payment of LS pt and Final bill an amount of Rs. 9,77,544/- with an interest @ 24percentage per annum for the delayed amount to the petitioner in respect of execution of above-mentioned work., forthwith and 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 pleased to DIRECT the respondents to consider for payment of LS and Final bill an amount of Rs. 9,77,544/- even after finalizing the bills payable to the petitioner in relation to the work i.e., Special Repairs to Madras - Culcutta road from Km 399.800 to 400.00 (L/s) in Guntur District in view of the of Visit of Shri Y.S. Jagan Mohan Reddy, Honble Chief Minister of Andhra Pradesh for distribution of Tractors and Harvesters to the farmers under FM Mega Mela II at Chuttugunta Centre on 02.06.2023, vide L.S. Agreement D.R. No./2023-24, Dt.23.11.2023 with an interest @ 24percentage per annum for the delayed amount to the petitioner, pending disposal of the Writ Petition and pass Counsel for the Petitioner: 3 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: 4 THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION No.28196 OF 2025 ORDER: The present Writ Petition is filed under Article 226 of the Constitution of India seeking the following relief: “…to issue a WRIT OF MANDAMUS declaring the action of the Respondents herein, in withholding the payment of LS 1st and Final bill an amount of Rs.9,77,544/- even after finalizing the bills payable to the petitioner in relation to the work i.e., Special Repairs to Madras-Culcutta road from Km 399.800 to 400.00 (L/s) in Guntur District in view of the visit of Shri Y.S.Jagan Mohan Reddy, Hon’ble Chief Minister of Andhra Pradesh for distribution of Tractors and Harvesters to the farmers under FM Mega Mela II at Chuttugunta Centre on 02.06.2023, vide L.S. Agreement D.R.No./2023-24, Dt.23.11.2023 is questioned, as the same is illegal and arbitrary apart from violative of Articles 14, 16, 19 & 300-A of the Constitution of India and consequently direct the respondents to consider for payment of LS 1st and Final bill an amount of Rs. 9,77,544/- with an interest @ 24 percentage per annum for the delayed amount to the petitioner in respect of execution of above-mentioned work., forthwith and pass such other order or orders…” 2. Heard Sri Suresh Kumar Reddy Kalava, learned counsel for petitioner and learned Government Pleader for respondents. 3. The short grievance of the petitioner in the present writ petition is that the petitioner executed the work, under L.S.Agreement D.R.No. /2023-24 dated 23.11.2023, namely, Special Repairs to Madras-Culcutta Road from Km 399.800 to 400.00 (L/s) in Guntur District, in view of the visit of Shri Y.S.Jagan Mohan Reddy, Hon’ble Chief Minister of Andhra Pradesh, for distribution of Tractors and Harvesters to the farmers under FM Mega Mela-II at 5 Chuttugunta Centre. Despite the petitioner having duly executed the work in terms of the agreement, the respondents have not released the due amount to the petitioner. Hence, the present writ petition has been filed. 4. Learned Government Pleader for Roads and Buildings filed counter- affidavit admitting that the work was completed and the 1st & Final bill was submitted on 02.12.2025 by the Executive Engineer (R&B) Division, Guntur, for a gross amount of Rs.9,77,544/- and a net amount of Rs.8,83,694/-. After scrutiny of above bills, the same were passed on 02.12.2023 and sent to Pay and Accounts Officer, Guntur, for arranging payment vide Token No.2023 2148827 dated 21.12.2023. But the Pay and Accounts Officer, Guntur, has returned the above work bill due to non-permission from Government in existing above work on nomination basis. In view of following circular, the bills of the petitioner need to be uploaded to the CFMS portal. However, due to insufficient budget, the respondents are unable to upload the bills to the CFMS portal and as and when the budget release to the Head of Account the said bills will be uploaded to the CFMS Portal. 5. It is further submitted that in the light of the order issued by the Government vide Memo.No.2551252/01/2025-Buildings, dated 24.05.2025, of Transport, Roads and Buildings (B) Department, that one time exemption from following the earlier procedure of administrative sanction and nomination powers exercised by the District Collectors in respect of emergency works is considered to upload the pending bills of barricading works, in view of the 6 pending of writ petitions in Hon'ble High Court, of A.P. and advised to regularize all the works taken up prior to issue of the orders vide Memo. No.2551252/183/2024-Bldgs, dt.20.12.2024 and shall not be quoted as precedent in future. In this regard, the Contractor has submitted representation on 16.06.2025 duly requesting to implement the same exemption to the above works, which were executed on urgent basis on nomination basis for the visit of Hon'ble CM programme, as the said bills are pending for more than two years. It is further submitted that view of the said Memo dated 20.12.2024, the 1st respondent issued circular permitting Executive Engineers to upload bills in respect of pending writ petitions to avoid legal complications. 6. 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 round questions of fact, the matter ought not be entertained under Article 226 of the Constitution of India. 7. 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-affidavit that they will pay the amount to the petitioner and they are waiting for budget release. Once the work executed by 7 the petitioner to the respondents is admitted and 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. 8. 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. 9. In view of the above, the present Writ Petition is disposed of with following directions: (a) The Executive Engineer and other concerned respondents are directed to clear the amounts due to the petitioner within a period of four (04) weeks from the date of receipt of a copy of this order. 1 (1971) 3 SCC 864 8 (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/interface 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, miscellaneous petitions pending, if any, shall stand closed. __________________________________ JUSTICE TARLADA RAJASEKHAR RAO Date: 31.01.2026 KBN/JAK 9 79 THE HON’BLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION No.28196 of 2025 Date: 31.01.2026 KBN/JAK