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2026 Supreme(Online)(AP) 19814

HIGH COURT OF ANDHRA PRADESH
Subba Reddy Satti, J
M/s V.S Engineering (P) Limited – Appellant
Versus
THE STATE OF AP – Respondent
WRIT PETITION NO: 16922/2025



Advocates:
For the Appellants/Petitioners: P. Anand Surya, Suresh Kumar Reddy Kalava
For the Respondents: P. Rajesh Kumar

A writ petition under Article 226 of the Constitution is maintainable for the recovery of contractual dues from state authorities if the debt is admitted and the non-payment constitutes arbitrary action, notwithstanding the existence of alternative civil remedies.

Headnote:(A) Constitution of India - Article 226 - Writ jurisdiction - Maintainability - Payment of admitted dues - Non-payment of admitted dues by State authorities, despite completion of works and entries in Measurement Book, is arbitrary action - Writ petition for recovery of such dues is maintainable. (Para 5)

Facts of the case:
The petitioner, a contractor, completed government construction works under a package agreement. Despite verifying the works in the Measurement Book and completing quality control inspections, the Respondent failed to release the final net payment of Rs.3,28,50,180/-. A writ petition was filed seeking a writ of mandamus for the release of these funds.

Findings of Court:
The Court observed that the respondents, in their counter-affidavit, admitted the execution of the works and the specific amount due to the petitioner. Consequently, the Court found the claim to be undisputed and maintainable under writ jurisdiction.

Issues: Whether the writ petition is maintainable for the recovery of money claims where the underlying debt is undisputed by the State.

Ratio Decidendi: Where the State admits to the completion of works and the liability to pay the contractual dues, the failure to release such payments constitutes arbitrary state action. Under such circumstances, the High Court possesses the power to direct payment through writ jurisdiction rather than relegating the petitioner to other civil remedies.

Result: Writ petition disposed of with a direction to the respondents to release the admitted sum within six months.

Table of Content
1. petitioner seeks payment for completed government work; respondents admit the liability in counter-affidavit. (Para 1 , 2 , 3)
2. writ jurisdiction is appropriate for enforcing admitted contractual payments against the state. (Para 4 , 5 , 6)

Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a WRIT OF MANDAMUS declaring the action of the Respondents herein, in not issuing the Bill Pass Orders and not paying the 1st and Part Bill Net Amount of Rs 2,87,75,737/- (Gross 3,16,78,334/-) and 2nd and Final Bill Net Amount of Rs 40,74,444/- (Gross 41,85,603/-), Totally Net Amount of Rs 3,28,50,181/- (Totally Gross Amount of Rs 3,58,63,937/-) even after making entries in the M-Book and Quality verifications despite letters from Respondent No.7 to Respondent No.6 vide Lr.No.DEE/APAM/PLND/Pedakurapadu/05 consisting of 8 works/2024,Dt.19.02.2024 and Lr.No.DEE/ APAM / PLND / Pedakurapadu / 05 consisting of 8 works/2024, Dt.16.06.2025, even after completion of the works to the prescribed standards and within the stipulated time in relation to the works i.e., Package No. APAM/PLND/Pedakurapadu/ 05 consisting of 8 works in Pedakurapadu constituency of Palnadu District as per the Agreement No.23/2022-23, Dt.18.08.2022 is questioned, as the same is illegal and arbitrary apart from violative of Articles 14, 16, 19 and 300-A of The Constitution of India and consequently direct the respondents to issue the Bill pass Orders and consider for payment of 1st and Part Bill Net Amount of Rs 2,87,75,737/-(Gross 3,16,78,334/-) and 2nd and Final Bill Net Amount of Rs 40,74,444/-(Gross 41,85,603/-), Totally Net Amount of Rs 3,28,50,181/-(Totally Gross Amount of Rs 3,58,63,937/-) with an interest 24 percent per annum for the delayed amount to the petitioner in respect of execution of abovementioned work forthwith and pass such other order or orders as this Honble Court may deems fit and proper in the circumstances of the case. Prayer is amended as per the Court's Order dt.18.07.2025 in I.A.No. 02 of 2025.

IA NO: 1 OF 2025

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to DIRECT the Respondents to issue the Bill pass Orders and consider for payment of 1st and Part Bill, Net Amount of Rs. 2,87,75,737/-(Gross: 3,16,78,334/-) and 2nd Final Bill, Net Amount of Rs.40,74,444/- (Gross: 41,85,603/-) Net Amount of Rs. 14,35,630/- (Gross: Rs.15,81,142/-) with an interest @24% per annum for the delayed amount to the petitioner in relation to the works i.e., “Package No.APAM/PLND/Pedakurapadu/05 consisting of 8 works in Pedakurapadu constituency of Palnadu District as per the Agreement No.23/2022-23, Dt. 18.08.2022”, pending disposal of the Writ Petition and pass

IA NO: 2 OF 2025

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to permit the petitioner to amend the Main prayer as follows: WRIT OF MANDAMUS declaring the action of the Respondents herein, in not issuing the Bill Pass Orders and not paying the Dt and Part Bill: Net Amount of Rs.2,87,75,737/-(Gross: 3,16,78,334/-) and 2^^ and Final Bill: Net Amount of Rs.40,74,444/- (Gross: 41,85,603/-), Totally Net Amount of Rs. 3,28,50,181/- (Totally Gross Amount of: Rs.3,58,63,937/- ) even after making entries in the M-Book and Quality verifications despite letters from Respondent No.7 to Respondent No.6 vide Lr.No.DEE/APAM/PLND/Pedakurapadu/05 consisting of 8 works/2024, Lr. No. DEE/ APAM / PLND / Pedakurapadu / 05 consisting of 8 works/2024, Dt. 16.06.2025, even after completion of the works to the prescribed standards and within the stipulated time in relation to the works i.e., "Package No. APAM/PLND/Pedakurapadu/ 05 consisting of 8 works in Pedakurapadu constituency of Palnadu Dis

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