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Court Orders Payment for Contract Dues

The petitioner, awarded various contracts in West Godavari District, filed a writ petition for the non-payment of a final bill amounting to Rs.1,17,41,707/-. The court directed the respondents to release the due payments along with interest within six weeks, acknowledging the government's budget constraints as the reason for the delay. The petitioner retains the right to seek a higher interest rate in a suitable forum.

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0% found this document useful (0 votes)
7 views3 pages

Court Orders Payment for Contract Dues

The petitioner, awarded various contracts in West Godavari District, filed a writ petition for the non-payment of a final bill amounting to Rs.1,17,41,707/-. The court directed the respondents to release the due payments along with interest within six weeks, acknowledging the government's budget constraints as the reason for the delay. The petitioner retains the right to seek a higher interest rate in a suitable forum.

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THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

WRIT PETITION No.25177 of 2023

ORDER:

1. The petitioner had been awarded various contract works in West

Godavari District. After execution of the said contract, a final bill was

prepared for a sum of Rs.1,17,41,707/- as per the sanctioned orders. As

the payment of the said amount has not been made by the respondents,

the petitioner has approached this Court by way of this writ petition.

2. It is the contention of the petitioner that even though the

respondents admitted that the petitioner is entitled for payment of the

aforesaid sum of money, no payment is being made. The petitioner

contends that such non-payment of money is clearly arbitrary and high-

handed requiring the interference of this Court.

3. This Court, in various orders, including the judgment of a learned

Single Judge of this Court dated 05.10.2021 in [Link].10038 of 2021 and

batch had taken the view that such non-payment of dues is arbitrary and

that such dues need to be cleared by the respondents at the earliest.

4. On the other hand, learned Government Pleader for Irrigation while

admitting about the claim of the petitioner placed on record instructions

received from the Executive Engineer, Godavari Western Division,

Nidadavole, dated 30.10.2023. He would submit that, since the budget

was not released by the Government, the bills were not paid to the

petitioner. Soon after release of the budget by the Government, the bills
2

will be paid to the petitioner for an amount of 1) Rs.26,62,000/- vide

Agreement No.120/2022-23 2) Rs.8,22,000/- vide Agreement

No.123/2022-23, 3) Rs.8,11,000/- vide Agreement No.124/2022-23, 4)

Rs.19,79,000/- vide Agreement No.121/2022-23, 5) Rs.17,30,000/- vide

Agreement No.122/2022-23, 6) Rs.7,61,000/- vide Agreement

No.125/2022-23, 7) Rs.7,79,000/- vide Agreement No.126/2022-23 and

8)Rs.7,19,000/- vide Agreement No.127/2022-23.

5. In view of the aforesaid directions of this Court in various cases and

after hearing the submissions of learned counsel for the petitioner, learned

Government Pleader for Irrigation this Writ Petition is disposed of with a

direction to the respondents to release the amount of an amount of 1)

Rs.26,62,000/- vide Agreement No.120/2022-23, 2) Rs.8,22,000/- vide

Agreement No.123/2022-23, 3) Rs.8,11,000/- vide Agreement

No.124/2022-23, 4) Rs.19,79,000/- vide Agreement No.121/2022-23, 5)

Rs.17,30,000/- vide Agreement No.122/2022-23, 6) Rs.7,61,000/- vide

Agreement No.125/2022-23, 7) Rs.7,79,000/- vide Agreement

No.126/2022-23 and 8) Rs.7,19,000/- vide Agreement No.127/2022-23;

dated 02.03.2023, to the petitioner along with the interest @ 6% per

annum, in view of the judgment of the Hon’ble Division Bench of this

Court in Writ Appeal No.724 of 2021 and batch dated 12.10.2023, within a

period of six (06) weeks from the date of receipt of a copy of this order. It

would also be open to the petitioner to agitate his claim for higher rate of
3

interest, if any payable by the respondents, in an appropriate forum. There

shall be no order as to costs.

Consequently, Miscellaneous Petitions, if any, pending in this Writ

Petition shall stand closed.

_____________________________________
VENKATESWARLU NIMMAGADDA, J

07.11.2023
Knr

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