Back
2025 Supreme(AP) 559
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
K.SREENIVASA REDDY, J.
Ch.Panduranga Raju, S/O Ramaraju – Appellant
Versus
The State Of Andhra Pradesh, Rep By Its Principal Secretary To Government – Respondent
WRIT PETITION NO : 15542 of 2025
Decided On : 11-08-2025
Advocate Appeared:
For the Appellant : DEVASRI ROSHAN KANCHARLA
For the Respondent: N.B. CHANDRA SEKHAR
Contractors are entitled to timely payments upon satisfactory completion of work; delays without justification may incur interest liabilities.
Headnote:(A) Andhra Pradesh Financial Code - Articles 39 and 50 - Writ petition challenging withholding of payments for completed government construction work - Respondents had finalized the bills but failed to release payments, which the petitioner claimed was arbitrary and illegal. (Paras 1, 7, 10)
(B) Judicial Relief - The court emphasized that when work is satisfactorily completed, payment must be made within the prescribed time, or interest is applicable on delays. (Paras 10)
Facts of the case:
The petitioner, a civil contractor, completed a government project and was owed Rs.52,68,159/- for the work. Bills were prepared and approved but not paid due to budgetary issues. (Para 2, 8)
Findings of Court:
The court directed the respondents to release Rs.52,68,158/- within six weeks; otherwise, interest at 6% would accrue. (Para 10)
Issues: The main issues addressed include the legality of withholding payments and the obligation to pay for completed work.
Ratio Decidendi: The court found that the withholding of payments was unjustified and mandated those be released promptly to avoid further delays and financial hardship. (Para 10)
Result: Writ Petition is disposed of with a mandate for payment.
ORDER :
This Writ Petition is filed challenging the action of respondents in withholding the payments of pending amount of Rs.52,68,159/- even after finalizing the bill payable to the petitioner in relation to the work i.e. Construction of Auditorium 1000 seating capacity (G+2 Floors with plinth area of 1660 sqm) at COH, Venkataramanagudem, West Godavari District vide Agreement No.59/2018-19, dated 20.07.2018).
2. The contents of the affidavit filed in support of the Writ Petition, in brief, are that, the petitioner is a Civil Contractor, used to execute works pertaining to laying of roads and sewage works etc., of R&B Department, Panchayat Raj Department and other Government Departments; that the respondent No.2 issued Tender Notification on nomination basis in the year 2018 and the petitioner, being the lowest bidder, was allotted the work on 20.07.2018 for an estimated amount of Rs.1050.00 lakhs. The petitioner entered into an Agreement No.59/2018-19 with respondents. Since the estimated amount for the said work was Rs.1050.00 lakhs, after completion of part work, respondents recorded the same in M- Books, part bills were raised and paid the amount to the petitioner. The present Writ Petition was filed for 4th and part bill of the aforesaid work.
(b) After completion of park work, as per the terms of the Agreement, the respondent officials recorded the same in M-Book on 30.12.2023 and after finalizing the formalities viz. QC, Vigilance, the bills were forwarded to the Finance Department, 4th and part bill were sent to respondent No.5 for grant of amount to the petitioner, but the respondents have not chosen to pay the amount for the work done by the petitioner.
(c) The petitioner approached the respondents for payment of amounts on several occasions, but no action was taken; that the petitioner invested amounts by borrowing from various sources, on interest and executed entire works to the satisfaction of the respondents and the respondents, having been satisfied with the execution of work, prepared bills, but had not released the amounts till date. The interest on the amounts, that were borrowed, was piling up day-by-day and if, the amounts are not paid at the earliest, the petitioner would be put to irreparable loss and hardship. The action of respondents in withholding the amounts payable to the petitioner, even after completion of works, is nothing but illegal, arbitrary and unconstitutional. Hence, the Writ Petition.
-
3. Respondent No.2/Dr. Y.S.R. Horticulture University filed counter-affidavit, contending that the bills, pertaining to Construction of Auditorium 1000 seating capacity (G+2 floors with plinth area of 1660 sqm) at College of Horticulture, Venkataramannagudem, West Godavari District, were uploaded in CFMS Portal in the month of September, 2023 during the Financial Year 2023-24, but no payment was made for the above bills and they were returned to DDO as per Articles 39 and 50 of the Andhra Pradesh Financial Code in the month of April, 2024; that for re- uploading the bills in CFMS portal, during the Financial Year 2024- 25, it was shown as insufficient budget for given DDO Head of Account combination; that the bills would be re-uploaded only when the Budget Release Order (BRO) and Administrative Sanction (AS) is released from the Government, but no Budget Release Order (BRO) was released for the Financial Year 2024-25.
(b) The budget estimates for the Financial Year 2025-26 were released on 15.07.2025 and administrative sanction was issued on 22.07.2025, in which total amount of Rs.173.87 lakhs was provided under NABARD RIDF Head of Account. The bills would be re-uploaded in the CFMS Portal as and when the said amount is received to the Executive Engineer Account, Dr.Y.S.R.Horticulture University. Therefore, it is prayed to dismiss the Writ Petition.
-
4. Heard the learned counsel for the petitioner and learned Government Pleader for Higher Education representing respondent No.1 and learned Government Pleader for
