APHC010332032026 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3327] TUESDAY, THE 21st DAY OF JULY 2026 PRESENT THE HONOURABLE SRI JUSTICE K SREENIVASA REDDY WRIT PETITION NO: 17998/2026 Between: 1. NEELAMSETTY SIVA VENKATA RAMANA,, S/O. MALLU NAIDU, AGED 56 YEARS, OCC. CONTRACTOR AND MATERIAL SUPPLIER, R/O. H.NO. 1-74, SARIPALLI VILLAGE, PENDURTHI MANDAL, VISAKHAPATNAM DISTRICT. ...PETITIONER A N D 1. STATE OF ANDHRA PRADESH, REPRESENTED BY ITS PRINCIPAL SECRETARY, PANCHAYAT RAJ DEPARTMENT,SECRETARIAT BUILDINGS VELAGAPUDI, THULLUR MANDAL, AMARAVATI, GUNTUR DISTRICT. - 522238 2. STATE OF ANDHRA PRADESH, REPRESENTED BY ITS PRINCIPAL SECRETARY FINANCE DEPARTMENT, SECRETARIAT, VELAGAPUDI, AMARAVATI, THULLUR MANDAL, GUNTUR DISTRICT. - 522238 3. THE ENGINEERINCHIEF, PANCHAYAT RAJ, Z.P.COMPOUND, OPPOSITE TO PWD GROUNDS, M.G.ROAD, VIJAYAWADA. - 520002 4. THE DISTRICT COLLECTOR, VISAKHAPATNAM DISTRICT, VISAKHAPATNAM. - 530001 5. SUPERINTENDING ENGINEER, PANCHAYAT RAJ CIRCLE, VISAKHAPATNAM, VISAKHAPATNAMDISTRICT. - 530001 6. EXECUTIVE ENGINEER, PANCHAYVISAKHAPATNAM, VISAKHAPATNAM DISTRICT. - 530001 7. THE PROJECT DIRECTOR, DISTRICT WATER MANAGEMENT AGENCY, VISAKHAPATNAM DISTRICT, VISAKHAPATNAM. - 530001 8. THE MANDAL PRAJA PARISHAD DEVELOPMENT OFFICER, (MPDO), PENDURTHI MANDAL, VISAKHAPATNAM DISTRICT. - 531173AT RAJ (PR) PIU DIVISION 9. THE MANDAL ENGINEERING OFFICER, MANDAL PRAJA PARISHAD, PENDURTHI MANDAL, VISAKHAPATNAM DISTRICT. - 531173 10. THE S R PURAM GRAM PANCHAYAT, REPRESENTED BY ITS SECRETARY, S.R.PURAM VILLAGE, PENDURTHI MANDAL, SRK, J W.P.No.17998 of 2026 2 VISAKHAPATNAM DISTRICT. - 531173 11. THE UNION OF INDIA, REP. BY ITS SECRETARY, RURAL DEVELOPMENT DEPARTMENT, GOVERNMENT OF INDIA, KRISHI BHAVAN, DR. RAJENDRA PRASAD ROAD, NEW DELHI- 110001. 12. THE DIRECTOR, MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE (MGNREG) SCHEME, MINISTRY OF RURAL DEVELOPMENT, GOVERNMENT OF INDIA KRISHI BHAVAN, NEW DELHI. - 110001 ...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, Order, or Direction more particularly one in the nature of WRIT OF MANDAMUS or any other appropriate writ or direction declaring the action of the respondents in withholding the payment of balance of Rs.8,95,706/- even after finalizing the bills, payable to the petitioner in relation to the work i.e., Construction of Village Health Clinic to Grama Sachivalayam Building at S.R.Puram District under MGNREGS Converging NRHM Funds Grant through Work ID No. 037072406006090047 for an amount of Rs.8,95,706/- as illegal, arbitrary and violative of Art 14 and 21 of Constitution of India and consequently direct the respondents to consider for payment of amount of Rs.8,95,706/- to the petitioner in respect of execution of above-mentioned work forthwith 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 direct the respondents to consider for payment of amount of Rs.8,95,706/- to the petitioner in respect of execution of work i.e.. Construction of Village Health Clinic to Grama Sachivalayam Building at S.R.Puram District under MGNREGS Converging NRHM Funds Grant through Work ID No. 037072406006090047 for an amount of Rs.8,95,706/- forthwith pending disposal of the main Writ Petition and pass Counsel for the Petitioner: 1. RAMBABU KOPPINEEDI Counsel for the Respondent(S): 1. GP FOR PANCHAYAT RAJ RURAL DEV 2. GP FOR REVENUE 3. GP FOR FINANCE PLANNING The Court made the following: SRK, J W.P.No.17998 of 2026 3 O R D E R Heard learned counsel for the Writ Petitioner, learned Assistant Government Pleader for the Panchayat Raj and Rural Development, representing respondent Nos.1, 3, 5 to 7, learned Assistant Government Pleader for the Finance, representing respondent No.2, learned Assistant Government Pleader for the Revenue, representing respondent No.4, learned Standing Counsel for Gram Panchayat, representing respondent Nos.8 to 10, and the learned Standing Counsel for the Central Government, representing respondent Nos.11 and 12. 2. This Writ Petition is filed seeking the following relief: “….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 withholding the payment of balance of Rs.8,95,706/- even after finalizing the bills, payable to the petitioner in relation to the work i.e. construction of Village Health Clinic to Grama Sachivalayam Building at S.R.Puram District under MGNREGS Converging NRHM Funds Grant through Work ID no.037072406006090047 for an amount of Rs.8,95,706/- as illegal and arbitrary, and consequently, direct the respondents to consider for payment of amount of Rs.8,95,706/- to the petitioner in respect of execution of aforesaid work forthwith and pass such other order or orders …” 3. The Writ Petitioner claims to be a Civil Contractor. The respondent No.7 entrusted the work of construction of Village Health Clinic to Grama Sachivalayam Building at S.R.Puram District under SRK, J W.P.No.17998 of 2026 4 MGNREGS Converging NRHM Funds Grant with an estimated cost of Rs.20.80 lakhs through Work ID No.037072406006090047, to the Writ Petitioner, on nomination basis. The Writ Petitioner took up the construction work and completed the same within the prescribed time. The respondent Nos.6 to 9 had taken over the records and all the bills submitted by the Writ Petitioner and issued statement for different works done by him, as per the Agreements, and kept pending and had not released the same till date. (b) It is the grievance of the Writ Petitioner that though he executed the entire work within time, the respondent authorities kept pending the balance amount of Rs.8,95,706/-. Even the Writ Petitioner approached the respondent authorities on multiple occasions, requesting for payment of aforesaid pending bill amount, they are not doing so. According to Writ Petitioner, having executed the work satisfactorily, within the prescribed time, non-payment of the bill amount was arbitrary and unjustified. It was further contended that the delay in payment is causing severe financial hardship, necessitating the filing of the present Writ Petition seeking appropriate directions for release of the outstanding amount. 4. Today when the matter is taken up for hearing, learned Assistant Government Pleader for the Panchayat Raj and Rural SRK, J W.P.No.17998 of 2026 5 Development Department, representing respondent Nos.1, 3, 5 to 7, on written instructions received from the Executive Engineer, PR PIU Division, Visakhapatnam-6th respondent, submits that the Writ Petitioner executed the work, and accordingly, after statutory deductions such as QC recovery, withheld amount aggregating to Rs.72,502/-, an amount of Rs.9,66,677/- was paid. Learned Assistant Government Pleader further submits that yet, an amount of Rs.8,41,581/-, after statutory deductions aggregating to Rs.54,125/-, is payable to the Writ Petitioner, but since the Estimates amount in the NIC Portal, instead of Rs.69.74 lakhs, only Rs.20.00 lakhs is available, Revised Estimates have to be prepared in the NIC Portal, for which, the Project Director, DWMA, Visakhapatnam has to unfreeze the same. Therefore, he seeks time to process the bills. The written instructions are placed on record. 5. The issue raised in the present Writ Petition is squarely covered by the Order of this Court in Rayapureddy Srinivasa Rao and others v. Government of Andhra Pradesh, rep. by its Principal Secretary to Government and others and others1 and batch in which the Writ Petitions are allowed with the following directions: 1 2021 SCC Online AP 3084. SRK, J W.P.No.17998 of 2026 6 (i) The Memo No.1263069/RD.II/A1/2020, dated 05.11.2020 and the Memo No.1388361/RD.II/A1/2020, dated 12.05.2021 issued by the Respondent NO.1 are set aside to the extent of deduction of 21.02% for DCC works and 6.333% for MCC works while making payment to the petitioner. (ii) The respondents are directed to clear the bills submitted by the petitioner and to release payment forthwith, in case no payment is made till date. (iii) In case, any part payment is made as on date, the remaining amount shall be paid to the petitioner forthwith. (iv) The respondents shall pay interest @ 12% per annum within a period of four (4) weeks from the date of receipt of a copy of this order. (v) The interest shall be compound from the date of expiry of one month from the date of submission of the bill by the petitioner to till the date of final payment. 6. Against the above said order, several Writ Appeals are filed and in one of the Writ Appeals (i.e.) Writ Appeal No.724 of 2021, a Division Bench of this Court has passed an interim Order, dated 18.11.2021 as extracted hereunder: “The direction of the learned Single Judge regarding payment of interest to the respondent No.1 as also setting aside the provision in Memo No.1263069/RD.II/A1/ 2020, dated 05.11.2020 and the Memo No.138861/RD.II/A1/ 2020, dated 12.05.2021 relating to deduction of 21.02% for DCC works and 6.333% for MCC works, while making payment, shall remained stayed. On a query of the Court, learned Advocate General submitted that the direction of the learned Single Judge as far as payment of the principal amount of the bills raised by the original writ SRK, J W.P.No.17998 of 2026 7 petitioner, in terms of the order of the Division Bench in Krishna District Grama Panchayathi Sarpanchla Sangam (supra), shall be made within four weeks, if already not done. The matter be listed for hearing in due course. It is clarified that the appellants shall comply with the rest of the directions issued by the learned Single Judge in the judgment under appeal.” 7. Subsequently, a Division Bench of this Court headed by the Hon‟ble the Chief Justice while hearing the Writ Appeal Nos.740 and 741 of 2021, having considered the Order passed in Writ Appeal No.724 of 2021, passed the following Order: “Considering the facts and circumstances of the case and having regard to the interim order passed by the Coordinate Bench, we direct that the said interim order shall apply for the present Writ Appeals also, however, with a condition that the appellants shall pay the principal amount of the bill raised by the original Writ Petitioners, within a period of four weeks, failing which the present interim order shall stand vacated without reference to the bench.” 8. The learned counsel for the Writ Petitioner requested the Court to clarify the applicability of the Memo No.1263069/RD.II/A1/ 2020, dated 05.11.2020 and the Memo No.138861/RD.II/A1/2020, dated 12.05.2021. 9. The learned Assistant Government Pleader for Panchayat Raj submitted that the said Memos are issued for the SRK, J W.P.No.17998 of 2026 8 works executed under „Mahatma Gandhi National Rural Employment Guarantee Scheme‟. Therefore, it is made clear that the Memo No.1263069/RD.II/A1/2020, dated 05.11.2020 and the Memo No.1388361/RD.II/A1/2020, dated 12.05.2021 are applicable to the works executed under „Mahatma Gandhi National Rural Employment Guarantee Scheme‟ only. 10. A perusal of the written instructions goes to show that there is no dispute with regard to execution of works by the Writ Petitioner under the Mahatma Gandhi National Rural Employment Guarantee Scheme, and also the Writ Petitioner‟s entitlement to net amount of Rs.8,41,581/- after statutory deductions. Therefore, since the amount payable to the Writ Petitioner, is admitted and undisputed, the Writ Petition is maintainable. In M/s. Utkal Highways Engineers and Contractors v. Chief General Manager & Ors.2, it was held as under: (Paragraph No.8) “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 2 2025 SCC OnLine SC 1400. SRK, J W.P.No.17998 of 2026 9 unless there are disputed questions of fact which by their very nature cannot be adjudicated upon without recording formal evidence.” 11. Having regard to the facts and circumstances of the case coupled with the submission made by the learned Assistant Government Pleader for the Panchayat Raj and Rural Development, the respondent authorities are directed to pay the net amount/ admitted amount of Rs.8,41,581/- (Rupees Eight Lakhs Forty One Thousand Five Hundred and Eighty One only) to the Writ Petitioner within a period of Two (2) months from the date of receipt of a copy of this order. 12. Accordingly, the Writ Petition is disposed of. There shall be no order as to costs of the Writ Petition. As a sequel thereto, the miscellaneous applications, if any, pending in this Writ Petition, shall stand closed. JUSTICE K. SREENIVASA REDDY 21st July, 2026. DNB Whether the Order is: Speaking ✓ Reasoned Reportable Non-reportable ✓