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2022 Supreme(AP) 683

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
VENKATESWARLU NIMMAGADDA, JJ.
N.V.V.Satyanarayana – Appellant
Versus
The State of Andhra Pradesh - Respondent
Writ Petition Nos. 29574, 29575, 29587, 29591, 29603, 29608, 29615, 29689, 29699, 30882, 30958, 33833, 33838, 33860, 33861, 33865 and 33839 of 2015
Decided on : 21-10-2022

Advocates:
Advocate Appeared:
For the Appellant : K. VENKATESH

Withholding of balance amounts by the Irrigation Department after completion of the work and lapse of a decade without valid reasons is illegal and arbitrary, and the petitioners are entitled to payment of the withheld amount along with interest and EMD.

Headnote:

WRIT PETITION - IRRIGATION - WITHHOLDING OF BALANCE AMOUNTS - ILLEGAL AND ARBITRARY - PAYMENT OF BALANCE AMOUNTS WITH INTEREST AND EMD DIRECTED.

Fact of the Case:

Petitioners, contractors, completed temporary protection work to close a breach on Appanna Tank, Vedurupaka Village, Gokavaram Mandal, East Godavari District, as per the agreement with the Irrigation Department. Despite completing the work within the stipulated time, the Irrigation Department withheld an amount of Rs.43,606/- due to a pending Vigilance Department enquiry. The petitioners filed writ petitions seeking payment of the withheld amount along with EMD.

Finding of the Court:

The court found that the withholding of the balance amounts by the respondents after execution of the works and after lapse of a decade without there being any valid reasons, is illegal and arbitrary.

Issues: 1. Whether the withholding of balance amounts by the Irrigation Department after completion of the work and lapse of a decade without valid reasons is illegal and arbitrary? 2. Whether the petitioners are entitled to payment of the withheld amount along with interest and EMD?

Ratio Decidendi: 1. The court relied on the judgment of a learned Single Judge of this Court in Rayapureddy Srinivasa Rao and others vs. Government of Andhra Pradesh, rep. by its Principal Secretary to Government and others and batch, 2021 SCC Online AP 3084 wherein it is held that non-payment of dues is arbitrary and that such dues need to be cleared by the respondents at the earliest. 2. The court also relied on the principles laid down by the Supreme Court in ABL International Limited v. Export Credit Guarantee Corpn. of India Ltd ((2004) 3 SCC 553) and Madras Port Trust v. Hymanshu International ((1979) 4 SCC 176) which emphasize that the State should not rely on technical pleas to defeat legitimate claims of citizens and should adopt a positive and wholesome policy of settling disputes on just terms.

Final Decision: The court allowed the writ petitions and directed the respondents to release the withheld amounts to the petitioners along with EMD and interest @ 9% p.a. from the date of report of the Vigilance & Enforcement Department dated 30.10.2013, within a period of six months from the date of receipt of a copy of this order.

ORDER :

Since all these writ petitions are identical in nature and as the issues involved in these cases are also similar, this Court deems it appropriate to dispose of all these writ petitions by way of this common order.

2. Heard learned counsel for the petitioners and learned Government Pleader for Irrigation appearing for the respondents.

3. For the sake of convenience and to avoid ambiguity in the discussion, the facts in W.P.No.29574 of 2015 are taken into consideration as under:

    i) This writ petition is filed to declare the action of respondent Nos.2 and 3 in not considering the representation of the petitioner dated 14.08.2015 for payment of withhold amount in respect of the work done by the petitioner i.e., temporary protection to close the breach on Appanna Tank, near Vedurupaka village, Gokavaram Mandal, East Godavari District, as illegal and arbitrary.

ii) It is the case of the petitioner that several tanks in Korukonda and Gokavaram Mandals of East Godavari District were breached due to Neelam Cyclone during the year 2012. All the minor and major irrigation tanks and canal bunds were damaged/breached and the storage water was flowing from all the breached/damaged tanks. Then, the respondent authorities have identified 243 works in respect of all the tanks and canals in these two Mandals which are to be arrested on war footing. The 2nd respondent due to urgency and to protect the storage of water in all the tanks entrusted works on nomination basis to close the breaches on emergency basis. The petitioner was allotted some of the works, one of the works is to provide temporary protection to close the breaches to the Appanna Tank, Vedurupaka Village, Gokavaram Mandal, East Godavari District vide agreement No.389/2012-13 dated 22.02.2013 with an estimated cost of the work is Rs.1,50,000/-. The petitioner had completed the work within the stipulated time and the same was recorded in the measurements book maintained by the Assistant Engineer, Godavari Central Division, Dowlaiswaram. Though respondent Nos.2 and 3 were satisfied with the work executed by the petitioner, the 2nd respondent withhold an amount of Rs.43,606/- on the ground that an enquiry by the Vigilance Department is pending. Then, the petitioner submitted a representation dated 14.08.2015 to respondent Nos.2 and 3 seeking payment of the withhold amount along with EMD. As there was no positive response from the respondents, the petitioner filed the present writ petition.

iii) The 2nd respondent filed a counter affidavit admitting the entrustment of 243 works to various contractors to close the breaches of tanks within 45 days and the works were completed in the year 2012 itself. It is stated that on a complaint put forth by one Madineedi Bala Gangadhara Chowdary and others, the Vigilance & Enforcement Department conducted a discreet enquiry regarding 75 works out of 243 works and submitted a report stating that some fraud was taken place and a proposal was made to recover the amounts from the contractors. The 2nd respondent was instructed to conduct an enquiry on the remaining 168 works for finalising the payment of bills to the contractors. Basing on the report of the Vigilance & Enforcement Department, the Government issued a Memo dated 16.07.2014 instructing the concerned authority to recover the amounts from the contractors. The balance 168 works cannot be inspected at this stage and it is highly impossible to establish whether the works were executed or not and about the quality of works, because all the works are urgent in nature and time bounded and subsequent to Neelam Cyclone in the year 2012, many cyclones caused much loss to the same irrigation sources and repairs were also carried out. In view of the above ground position, a report was submitted to the higher officials for further instructions/permission with regard to the release of withhold amounts to the contractors. The orders are awaited and soon after receipt of further instructions, action will

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