The State or its instrumentalities cannot withhold payment for admitted works executed by a contractor on the grounds of financial incapacity or paucity of funds, and such claims are maintainable under writ jurisdiction.

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 herein in not releasing the final bill Amount of Rs.45,45,403/- (Rupees Forty Five Lakhs Forty Five Thousand Four Hundred and Three Only) due and payable to the Petitioner towards construction of incomplete work at Government Junior College at Thonduru Village and Mandal, YSR District pursuant to the Agreement No.SE/AEE/2023-2024, dt.18.1.2024 as illegal, arbitrary and violative of Articles 14 and 19 (1) (g) of the Constitution of India and consequently direct the Respondents herein to release and pay the final bill amount of Rs.45,45,403/- (Rupees Forty Five Lakhs Forty Five Thousand Four Hundred and Three Only) due and payable to the Petitioner towards construction of incomplete work at Government Junior College at Thonduru Village and Mandal, YSR District pursuant to the Agreement No.SE/AEE/2023-2024, dt.18.1.2024 and pass

IA NO: 1 OF 2024

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 release and pay the final bill amount of Rs.45,45,403/- (Rupees Forty Five Lakhs Forty Five Thousand Four Hundred and Three Only) due and payable to the Petitioner towards construction of incomplete work at Government Junior College at Thonduru Village and Mandal, YSR District pursuant to the Agreement No.SE/AEE/2023-2024, dt.18.1.2024 pending disposal of the above Writ Petition and pass

The Court made the following:

THE HONOURABLE SRI JUSTICE MAHESWARA RAO KUNCHEAM

WRIT PETITION NO: 21544 of 2024

ORDER:-

The instant writ petition has been filed by the petitioners under Article 226 of Constitution of India seeking the following main prayer:

“….to issue a writ order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the Respondents herein in not releasing the final bill Amount of Rs.45,45,403/- (Rupees Forty Five Lakhs Forty Five Thousand Four Hundred and Three Only) due and payable to the Petitioner towards construction of incomplete work at Government Junior College at Thonduru Village and Mandal, YSR District pursuant to the Agreement No.SE/AEE/2023-2024, dt.18.1.2024 as illegal, arbitrary and violative of Articles 14 and 19 (1) (g) of the Constitution of India and consequently direct the Respondents herein to release and pay the final bill amount of Rs.45,45,403/- (Rupees Forty Five Lakhs Forty Five Thousand Four Hundred and Three Only) due and payable to the Petitioner towards construction of incomplete work at Government Junior College at Thonduru Village and Mandal, YSR District pursuant to the Agreement No.SE/AEE/2023-2024, dt.18.1.2024 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 and Sri L.Radha Krishna, counsel representing Sri V.C.H. Naidu, learned Standing Counsel for APEWIDC appearing for 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 Standing Counsel for the respondent Corporation, places a copy of the written instructions dated 08.04.2026 issued by the concerned authority of the Corporation and submits that five months’ time may be granted for paying the admitted amount of Rs.45,45,403/- to the petitioner.

Since it is not in disput