Financial incapacity or paucity of funds is not a valid legal defense for a state instrumentality to withhold admitted payments for undisputed works completed by a contractor.

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, Order or Direction more particularly one in the nature of Writ of MANDAMUS declaring the action of the respondents in not releasing the admitted final bills to the petitioner for the work pertaining to providing Construction of new school building at ZP High School at Gollalaguduru (v) of Vemula (M) in YSR Kadpa District, for an amount of Rs. 48,36,995/- even after the entries recorded in M-Book is illegal, arbitrary, malafide, high-handed, and contrary to the procedure established by law apart from being voilative of Articles 14 and 19 (1) (g) of the Constitution of India and consequentially direct the respondents to release the admitted final bill amounts of Rs. 48,36,995/- along with interest forthwith in the interest of justice 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 to direct the respondents to pay the admitted final bill amounts to the petitioner for the work pertaining to providing Construction of new school building at ZP High School at Gollalaguduru (v) of Vemula (M) in YSR Kadpa District for an amount of Rs. 48,36,995/- pending disposal of the Writ Petition and to pass

The Court made the following Order:

Instant Writ Petition has been filed by the petitioner under Article 226 of the Constitution of India is filed for the following relief:

“.... to issue a writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the respondents in not releasing the admitted final bills to the petitioner for the work pertaining to providing Construction of new school building at ZP High School at Gollalaguduru (v) of Vemula (M) in YSR Kadpa District, for an amount of Rs. 48,36,995/- even after the entries recorded in M-Book is illegal, arbitrary, malafide, high-handed, and contrary to the procedure established by law apart from being voilative of Articles 14 and 19 (1) (g) of the Constitution of India and consequentially direct the respondents to release the admitted final bill amounts of Rs. 48,36,995/- along with interest forthwith in the interest of justice and pass such other order …”.

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 them.

Heard learned counsel for the petitioner and learned Assistant Government Pleader for the respondents.

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 Assistant Government Pleader, places a copy of the written instructions dated 06.05.2026 issued by the Executive Engineer, APEWIDC, Kadapa and submits that six months’ time may be granted for paying the admitted amount of Rs.39,86,880/- to the petitioner.

Since it is not in dispute that the petitioner completed the works and has yet to receive payment, 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.

Recently, the Hon’ble Supreme Court of India held in Utkal Highways Engineers and Contractor Vs Chief General Manager and Others ¹(2025) SCC Online SC 1400, 2026:APHC:21291, in vivid terms categorically held in the following manner:

“8. Be that as it may, the High Court has not dealt with the merits of the writ petition. Moreover, it is not an inviolable rule t