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2026 Supreme(Online)(AP) 20116
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Maheswara Rao Kuncheam, J
M/S MPR CONSTRUCTIONS – Appellant
Versus
THE STATE OF ANDHRA PRADESH – Respondent
WRIT PETITION NO: 9218/2026
For the Appellants/Petitioners: Devasri Roshan Kancharla
For the Respondents: V Ch Naidu, GP for School Education, GP for Finance Planning
A State instrumentality cannot withhold admitted payments for completed works by citing financial incapacity or paucity of funds as a valid defense.
Headnote:(A) Administrative Law - Payment of Dues - Admitted liability - Financial incapacity or paucity of funds cannot be a valid defense for withholding payments for undisputed works executed by a contractor. (Para 7)
(B) State Instrumentality - Article 12 of the Constitution - Entities acting as instrumentalities of the State are bound to fulfill statutory and contractual obligations for works admitted to be completed. (Para 7)
(C) Interest on Delayed Payments - Absence of contractual terms - Interest cannot be awarded in the absence of specific terms and conditions in the relevant agreement between the parties. (Para 8)
Issues: Whether the respondents are liable to release admitted payments for completed construction works despite claiming financial constraints.
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 topleased to issue an appropriate Writ Order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the Respondents in withholding the Payments Rs.1,24,16,957/- (Rupees One Crore Twenty Four Lakhs Sixteen Thousand Nine Hundred and Fifty Seven only) for the year2023, even after finalizing the bills, payable to the petitioner in relation to the works Construction of Incomplete Government polytechnic Collage Building (Block-C) at Vempalli (V and M) in YSR 151.00 Lahks, Agreement with interest @ 24 percent per Estimate Cost of Rs. no.33/SE/AEE/2023-24,Date 21.08.2023 annum for the delayed amount till date of realization for the works District executed by the petitioner and pass
IA NO: 1 OF 2026
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 pleased to direct the respondents to releasing the Payments of Rs.1,24,16,957/- (Rupees One Crore Twenty Four Lakhs Sixteen Thousand Nine Hundred and Fifty Seven only) payable to the Petitioner herein, pending disposal of the write petition and pass
Counsel for the Petitioner:
1. DEVASRI ROSHAN KANCHARLA
Counsel for the Respondent(S):
1. V CH NAIDU
2. GP FOR SCHOOL EDUCATION
3. GP FOR FINANCE PLANNING
The Court made the following:
ORDER:
This Writ Petition under Article 226 of the Constitution of India is filed seeking the following main relief:
“declaring the action of the Respondents in withholding the Payments Rs.1,24,16,957/- (Rupees One Crore Twenty Four Lakhs Sixteen Thousand Nine Hundred and Fifty Seven only) for the year 2023, even after finalizing the bills, payable to the petitioner in relation to the works,
i) Construction of Incomplete Government polytechnic Collage Building (Block-C) at Vempalli (V & M) in YSR District – Estimate cost of Rs.151.00 Lakhs, Agreement no.33/SE/AEE/2023-24,Date 21.08.2023” with interest @ 24% per annum for the works executed by the petitioner and pass”
The sum and substance of the writ petition is that the petitioner challenged the inaction of the respondents in not releasing the amounts even after completion of the entire works entrusted to him.
Heard learned counsel for the petitioner, learned Assistant Government Pleader for Finance & Planning and Sri L. Radha Krishna, learned counsel representing Sri V.Ch.Naidu, learned Standing Counsel for the respondent Corporation.
Learned counsel for the petitioner, while reiterating the averments made in the writ affidavit, submits that in view of the non-release of the admitted amounts, the petitioner is facing multifarious problems, physically and fiscally. Hence, he submits that the release of the amounts is just and essential.
On the other hand, learned counsel for the respondent Corporation, places a copy of the written instructions dated 29.04.2026 issued by the concerned Corporation authorities, and submits that the bills amount of Rs.1,11,38,833.44ps (Rupees One Crore Eleven Lakhs Thirty Eight Thousand Eight Hundred and Thirty Three Forty Four Paise only) and admitted amounts are under process for making payment. He submits that ten months' time may be granted for paying the admitted amounts to the petitioner. He further submits that though the petitioner claimed total amount of Rs.1,24,16,957/-, he is entitled to get Rs.1,11,38,833.44ps only.
Since it is not in dispute that the petitioner completed the works and has yet to receive payment, as evident from the written instructions dated 29.04.2026 of the concerned respondent Corporation authority, this Court finds the respondents‟ failure to pay is unjustified. However, taking into consideration of the ground realities to settle the admitted amounts, the respondents are granted rational time to settle the dues.
