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2022 Supreme(AP) 1477

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATHI
BATTU DEVANAND, J.
Ch. Srinivasulu S/o. Yogaiah – Appellant
Versus
The State of Andhra Pradesh – Respondent
Writ Petition No.29875 of 2021
Decided on : 24-01-2022

Advocates:
Advocate Appeared:
For the Appellant : ARUN SHOWRI G

Headnote:(A) Mahatma Gandhi National Rural Employment Guarantee Scheme - The court addressed the validity of Memos concerning payment deductions for DCC and MCC works, thereby reinforcing the need for timely payment of dues. (Paras 2-10)

(B) Interest on delayed payments - The court held entitlement to interest on late payments at the rate of 12% per annum, if not paid within stipulated time. (Paras 2-4)

Facts of the case:
The petitioner contested deductions for DCC works and MCC works from payments due, seeking the release of withheld payments. The court referred to prior orders related to similar matters.

Findings of Court:
The respondents are directed to pay the principal amount due within four weeks, with rights to renew the claim for interest after pending appeals.

Issues: The main issue was the legality of deductions in payments for government works.

Ratio Decidendi: The court determined payments should not involve unjustified deductions and mandated timely disbursement of the principal amount owed.

Result: Writ petition disposed of, directing payment within four weeks.

Table of Content
1. introduction of case and representation. (Para 1)
2. application of relevant government memos. (Para 2 , 8 , 9)
3. court's analysis and consideration of interim orders. (Para 3 , 4 , 5)
4. directive to pay principal bill amount. (Para 10)
5. conclusion and order on costs. (Para 11 , 12)

ORDER :

Heard learned counsel for the petitioner and the learned counsels appearing for the respondents. Perused the material available on record.

2) The issue raised in the present writ petition is squarely covered by the order 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 in which the writ petitions were allowed with the following directions:

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 computed 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.

3) Against the above said order, several writ appeals are filed and in one of the writ appeals (i.e.) W.A.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. 1388361/ 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 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.”

4) 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 W.A.No.724 of 2021, the following order is passed:

    “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.”

5) The respective counsels appearing for the petitioner and respondents have consented to dispose of the writ petition by following the order, dated 24.11.2021, passed by a Division Bench of this Court in W.A.Nos.740 and 741 of 2021.

6) The learned counsel appearing for the petitioner sought permission of this Court to grant liberty to renew his claim with regard to the interest part after disposal of the writ appeals.

7) The learned counsel for the petitioner requested the Court to clarify the applicability of the Memo No.1263069/RD.II/A1/2020,

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