Research › Search › Judgment

High Court of Andhra Pradesh · body

2026 DAILYLAW 25521 (AP)

PRUDHVI CONSTRUCTIONS PVT LTD v. THE STATE OF ANDHRA PRADESH

WP/29609/2025 · 2026-01-22

Tarlada Rajasekhar Rao

body2026

Judgment text

Extracted from the PDF above. The PDF is authoritative.

APHC010572742025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3330] FRIDAY, THE TWENTY THIRD DAY OF JANUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION No.29609 of 2025 Between: 1. PRUDHVI CONSTRUCTIONS PVT LTD, REP. BY ITS MANAGING PARTNER D VAMSI KRISHNA, S/O.NAGESWARA RAO, AGED ABOUT 36 YEARS, OCC CONTRACTOR, R/O. 30- 46-68, NCOS COLONY, 3 LINE, GUNTUR, GUNTUR DISTRICT, PINCODE 522004. ...PETITIONER AND 1. THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF ROADS AND BUILDINGS DEVELOPMENT, SECRETARIAT BUILDINGS, VELAGAPUDI, AMARAVATHI, GUNTUR DISTRICT. 2. THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF FINANCE AND PLANNING, SECRETARIAT BUILDINGS, VELAGAPUDI, AMARAVATHI, GUNTUR DISTRICT. 3. THE CHIEF ENGINEER, R AND B DEPARTMENT, VIJAYAWADA, NTR DISTRICT. 4. THE SUPERINTENDING ENGINEER R AND B, NH CIRCLE, A VIJAYAWADA, NTR DISTRICT. 5. THE EXECUTIVE ENGINEER, (R AND B) NH DIVISION, VIJAYAWADA, NTR DISTRICT. 6. THE CHIEF EXECUTIVE OFFICER, APCFSS, 3RD FLOOR, NIDHI BHAVAN, BEHIND APIIC BUILDING, MANGALAGIRI, GUNTUR DISTRICT, PINCODE 522503. ...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 2 may be pleased to issue a writ of mandamus or any other Vappropriate writ or direction declaring the action of the Respondents not releasing the Bill amount of Rs.20,78,517/- vide M Book Mo. 1494A, even after finalizing the bills, payable to the petitioner in relation to the works i.e., Urgent Repairs to NH 167 AG (Kondamudu - Perecherla Road from Km 250/000 to 262/000 in Guntur District in the State of Andhra Pradesh Part-B - Balance work), vide D.R. Agreement No.2024-25, dated 26.12.2024 is questioned, as the same is illegal, arbitrary and consequently direct the respondents to pay for payment of amount of Rs.20,78,517/- vide M Book No.1494A with interest @24 percent per annum for the delayed amount to the petitioner in respect of execution of above-mentioned work forthwith. Counsel for the Petitioner: 1. MODAPOTHULA SUMALATHA 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 or any other Vappropriate writ or direction declaring the action of the Respondents not releasing the Bill amount of Rs.20,78,517/- vide M Book Mo. 1494A, even after finalizing the bills, payable to the petitioner in relation to the works i.e., Urgent Repairs to NH 167 AG (Kondamudu - Perecherla Road from Km 250/000 to 262/000 in Guntur District in the State of Andhra Pradesh Part-B - Balance work), vide D.R. Agreement No.2024-25, dated 26.12.2024 is questioned, as the same is illegal, arbitrary and consequently direct the respondents to pay for payment of amount of Rs.20,78,517/- vide M Book No.1494A with interest @24 percent per annum for the delayed amount to the petitioner in respect of execution of above-mentioned work forthwith and pass such other orders……" 2. The Writ Petition is filed for payment of amount of Rs.20,78,517/- and seeking interest at 24% per annum for the delayed amount due to the delayed amount to the petitioner in respect of execution of works, i.e., urgent repairs to NH-167 AG (Kondamudu – Perecherla Road) from Km 250/000 to 262/000 in Guntur District in the State of Andhra Pradesh (Part-B – Balance work), vide D.R.Agreement No. /2024-25, dated 26.12.2024. 3. The 5th respondent-Executive Engineer, R&B NH Division has addressed a letter to the Government Pleader dated 09.12.2025. The said written instructions indicate that the budget release is mandatory for processing the contractor’s bill in the NIDHI portal and a requisition for release of budget/Letter of Credit (LOC) under the HOA 3054-01- 337-12-06-270-272 was addressed to the Engineer-in-Chief (R&B) NH 4 & CRF, Vijayawada, requesting release of LOC vide Lr.No.LOC/OR/A2/ 2025 dated 07.05.2025, 24.06.2025, 03.09.2025, 12.09.2025 & 05.12.2025 and the Engineer-in-Chief, in turn, has addressed a letter to the Principal Secretary to Government T, R&B Department, for release of budget vide. On careful perusal of the said written instructions addressed by the Executive Engineer, it indicates that the respondents have not disputed the payment due to the petitioner. 4. 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 the said bill. 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. 5. 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 5 constitutional obligation by adhering to the letter and spirit of Articles 14 and 21 of the Constitution of India. 6. 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 six (6) weeks from the date of receipt of a copy of this order. (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: 23.01.2026 siva 6 THE HON’BLE SRI JUSTICE TARLADA RAJASEKHAR RAO WRIT PETITION No.29609 of 2025 Date: 23.01.2026 siva