Authorities must honor payment for executed works while ensuring due diligence amid ongoing inquiries.

THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO.12525 of 2024

ORDER:

1. The present Writ Petition is filed questioning the action of the Respondent authorities in not paying the admitted amount of Rs.41,62,833/- due to the Petitioner even after finalizing the bill in relation to the work vide Agreement No.289/2023-24, dated

05.09.2023, as illegal and arbitrary.

2. A Counter Affidavit was filed on behalf of the Respondent No.8, wherein the execution of agreement and amount due to the Petitioner was admitted as it is stated at Paragraph No.5 that the amount due to the Petitioner could not be paid due to lack of general funds.

3. Further, it was stated that the Mangalagiri Tadepalli Municipal Corporation has undertaken many works during the previous financial years i.e. 2022-23 & 2023-24, but bills were not paid due to certain lapses, which have been taken in execution of works. Therefore, to observe the lapses in works executed, the Commissioner, Additional Commissioner & Deputy Commissioner of Mangalagiri Tadepalli Municipal Corporation have inspected physically certain works and identified in the preliminary execution of works specifically in categories of Nomination Works, Chenetha Bazar, B.T & CC Roads and Shifting of Works.

4. It is further stated that preliminary report has been submitted to the Commissioner & Director of Municipal Administration, Andhra Pradesh vide Roc.No.758/2024/C, dated 06.10.2024 for taking further action and same is awaited.

5. It is further stated that the Superintendent of Police & Regional Vigilance & Enforcement Officer, Guntur vide Roc.No.138/ 2024/ V&E/ ENGG/ DEE/ GNT, dated 09.09.2024 had informed the Director General & Ex-office Principal Secretary to Government, Vigilance & Enforcement Department, Andhra Pradesh, Vijayawada to conduct detailed enquiry on certain aspects pertaining to Mangalagiri Tadepalli Municipal Corporation and it was requested to furnish the information relating to the works done 2019-2024 onwards.

6. Thereupon, the Vigilance & Enforcement Department has taken up verification on the works executed from 2019-2024 and the report is yet to be received, therefore the payments were not made apart from financial priorities of the Respondent-Corporation.

7. This Court after hearing the respective counsel is of the considered opinion that as there is no dispute to the execution of works and amounts due to the Petitioner as apparent from Paragraph No.5 of the Counter Affidavit, the Petitioners in that scenario cannot be called upon to wait peremptorily for conclusion of vigilance enquiry to receive their rightful amounts. At the same time, this Court cannot foreclose the vigilance enquiry.

8. Therefore, a balance has to be maintained vis-à-vis the ongoing vigilance enquiry and Petitioners, whose execution of works and amounts due are not in dispute. Therefore, it would be appropriate to dispose of the Writ Petition with the following directions;

(i) The Petitioner shall submit a security bond undertaking to reimburse the amount to the Respondent-Corporation, if any on account of deficiency in the work or excess payment is made by the Respondent-Corporation pursuant to the ongoing vigilance enquiry;

(ii) On furnishing of security bond, the Respondent authorities are directed to pay the amounts due to the Petitioner within a period of six (6) months from today;

(iii) No order as to costs.

9. With the above observation, the Writ Petition is disposed of.