HON’BLE SRI JUSTICE NAGESH BHEEMAPAKA WRIT PETITION No. 3607 OF 2023

O R D E R:

This Writ Petition challenges that action of the respondents in withholding Rs.20,00,888/- despite making innumerable representations. Consequently, petitioner seeks a direction to release the said amount with interest at 24% per annum from the date the amount fell due.

2. Petitioner, it is stated, had successfully and satisfactorily executed the works, details of works, date of completion, last date of defect liability have been mentioned in paragraph 3 of the affidavit, by entering into corresponding agreements, duly depositing amount towards final security deposit which has to be returned in terms of Clause 42.3.1 of the Agreement. In terms of the above clause, the defective liability period of 24 months is also over, however, respondents, have been dodging the payments for no reason. In fact, petitioner is stated to have submitted umpteen number of representations, both oral and written, the latest being the one dated 07.10.2022 requesting release of amounts, however, respondents are not acting upon the same.

3. This Court, by order dated 08.02.2023, recording the submission made by learned Assistant Government Pleader for Roads & Buildings to the effect that request of petitioner for release of security deposit is under process and decision would be taken by the authorities in a short time, directed Respondents 4 and 5 to forthwith dispose of the representation of petitioner dated 07.10.2022 for release of EMD final security deposit within ten days from the date of receipt of a copy of the said order.

4. Respondents 3,4 and 5 filed their counter stating that government had approved all the bills and payment has been made for a total amount of Rs.19,85,655/- on 01.03.2023 as requested by petitioner and no outstanding dues are pending in their division.

5. In the counter and additional counter filed by the 6^th respondent, it is stated that after formation of new Districts in Telangana, security deposits towards EMD of petitioner were transferred to jurisdiction of Assistant Pay and Accounts Officer, Yadadri-Bhuvanagiri District who processed the bills and kept it ready for payment in IFMS module to the government for approval; approval was also received from the 7^th respondent and the 2^nd respondent would pay the bills to petitioner.

According to this respondent, as per Clause 43.1, petitioner is not entitled to payment of interest.

6. The 7^th respondent also filed counter stating that bills are pending for authorisation from the government and soon after they receive authorisation, amounts would be credited directly to petitioner.

7. At this stage, learned counsel for petitioner M/s Indus Law Firm filed memo of calculation dated 11.12.2024 which states that during pendency of Writ Petition and in terms of interim order dated 08.02.2023, respondent authorities had remitted the principal amount of Rs.20,00,888/-, but failed to deposit the interest amount accrued over a period of time. Hence, he seeks a direction to respondents to pay the interest component. Learned counsel relies on the judgments of the Hon’ble Supreme Court in TAMGEDCO Ltd. v. T.T. Industries Limited, (2017) 5 SCC 550 and that of this Court in M/s Raghava_HES- Navayuga (JV) v. State of Telangana (W.P.No. 12825 of 2023) and contends that petitioner is entitled to interest for the delayed payment.

8. Evidently, Clause 43 of the Agreement deals with ‘Interest on Money due to the contractor’. It specifies, ‘No

omission by the Executive Engineer or the Sub-divisional Officer to pay the amount due upon certificates shall vitiate or make void the contract, nor shall the contractor be entitled to interest upon any guarantee fund or payments in arrear, nor on any balance which may, on the final settlement of his accounts, found to be due to him’. The said clause clearly says that contractor is not entitled to interest on any payments in arrear nor on any balance which are found to be due.

9. If th