IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVA+i (SPECIAL ORIGINAL JURISDICTION)

FRIDAY, THEI FOURTH DAY OF AUGUST ll^/O THOUSAND AND ll^/ENTY THREE :PRESENT:

THE HONOURABLE SRI JUSTICE GANNAMANENI RAMAKRISHNA PRASAD

WRIT PETITION NO: 59O6 OF 2023

Betwee n :

.A

Sri Surya Rama Constructions, Rep. by its Managing Partner, Palacharla Satyanarayana Rao, S/o.Rama Krishna, aged about 55 years, Occ Contractor, R/o.D.No.4-56, Main Road, Vadlamuru Village, Peddapuram Mandal, East

Godavari District.

...Petitioner

AND

1. The State ofAndhra Pradesh, Municipal Administration Department, Rep by its Principal Secretary, Secretariat Buildings, Velagapudi, Amaravathi, Guntur I District

(CT is amended as per C.O. dated.19.06.2023 vide order passed in lA No.2 of 2023.)

• 2. The Chief Engineer, Public Health, 5th FIoor, Garuda Enclave, Tadepalli, Guntur District.
• 3. The Superintending Engineer, (PH) Rajahmahendravaram, East Godavari District.
• 4. The Executive Engineer, (PH) Rajahmahendravaram, East Godavari District.
• 5. The State ofAndhra Pradesh, Rep. by its Principal Secretary, Department of Finance & Planning, Secretariat Buildings, Velagapudi, Amaravathi, Guntur District.

...Respondents

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 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 payment of net amount Rs'.45,00,835/-even after finalizing the bills, payable to the petitioner in relation to the work i.e., Kakinada -Integrated Housing SIum Development Projects - Providing balance infrastructures facilities at par[opet - site Development, construction of RCC ELSR, RCC Sumps, Pump Houses, CC pavements, RCC culverts, Drains, Sewerage arrangements, Pumping Mains, Drinking water distribution mains, Utility water piping system, street lighting, value chambers, multi utility community facility center, sub mergible pump sets with all electrieal and mechanical equipments and mal'ntenance of the scheme for 2 years defect liability period vide L.S.Agt.No.03/2016-2017 dt.31.05.2016, is illegal, arbitrary and consequently direct the respondents to consider for payment of amount of Rs.45,00,835/- with imterest @24 PERCENT per annum for the delayed amount to the petitioner in respect of execution of above-mentioned work forthwith;

IA NO: 1 OF 2023

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 the funds for an amount of amount Rs.45,00,835/- even after finalizing the bills, payable to the petitioner in relation to the work i.e., "Kakinada -Integrated Housing Slum Development Projects - Providing balance infrastructures facilities at Parlopet - Site Development, construction of RCC ELSR, RCC Sumps, Pump Houses, CC pavements, RCC culverts, Drains, Sewerage arrangements, Pumping Mains, Drinking water distribution mains, Utility water piping system, street lighting, value chambers, multi utility community facility center, sub mergible pump sets with all electrical and mechanical equipments and maintenance of the scheme for 2 years defect liability period" vide L.S.Agt.No.03/2016-2017 dt.31.05.2016 pending disposal of WP 5906 of 2023, on the file of the High Court.

The petition coming on for hearing, upon perusing the Petition and the affidavit filed in support thereof and upon hearing the arguments of Sri Polanki Anand Surya, Ld. Counsel for the Writ Petitioner, Sri Katha Sudhakar, Ld. Assistant Government Pleader for Municipal Administration & Urban Development appearing on behalf of Respondent Nos.1 to 4 and Sri S.Nagaraju, Ld. Assistant Government Pleader for Finance and Planning appearing on behalf of the Respondent No.5, the Court made the following ORDER:

"Heard Sri Polanki Anand Surya, Ld. Counsel for the Writ Petitioner, Sri Sudhakar, Ld. Assistant Government Pleader for Katha Municipal Administration & Urban Development appearing on behalf of Respondent Nos.1 to 4 and Sri S.Nagaraju, Ld. Assistant Government Pleader for Finance and Planning appearing on behalf of the Respondent No.5.

2. In compliance with the directions of this Court dated 12.07.2023, the Respondent No.4 has filed Counter-Affidavit dated 14.07.2023. The relevant portion of the Counter-Affidavit is usefully extracted hereunder:

"13. "The balance work was entrusted to a contractor in March 2016 with a stipulation to complete by 30.5.17. However, the work was not completed as of November 2018: Work was executed after expiry of agreement period (i.e., by May 2017). No EoAT was granted. Value of work done as of January 2018 was Rs.2,18,46,165/- and thereafter there was no progress in the work. Liquidated damages were not imposed on the contractor for non-achievement of milestones as per agreement conditions.

When the reasons for non-completion of work were called for, it was replied that the work was completed by March 2018. The final bill would be settled after approval of deviation of EoAT from higher authorities."

14. In this regard, replies have been submitted to the Accountant General, Andhra Pradesh, Vijayawada vide this Lr.no:574M/A19/Supdt/2019. Nos $\mathbf{I})$ office letter dt.28.11.2019, II). Lr.no: 43M/A19/ Supdt/2019, dt.08.02.2021, & III). Lr.no:559M/ A19/Supdt/2021, dt.09.12.2021 as follows,

15. "The balance work was entrusted t the firm M/S Sri Surya Rama Constructions, Peddapuram in March 2016. Even though being a difficult work, the contractor completed the entire balance work by December 2017. The beneficiaries have occupied the houses and utilizing the benefits of infrastructure created under this project. The EOAT was sanctioned upto 31.12.2017 vide memo.no: of the IHSDP/II/2015-21/1 dt.09.03.2021 224/T6/KKD/ Engineer-In-Chief, Tadepalli. The deviation statement incorporating the GST was approved by the Engineer-In-Chief, Tadepalli vide memo.no: 225/T6/KKD/IHSDP/II/ 2015-21/1/dt.28.06.2021.

16. In this connection, it is to submit that, for any work with pending audit inspection paras, final bill cannot be paid to the contractor until dropping of pending audit inspection paras by the competent authority. Hence, the LS 3^rd and final bill of the petitioner for the above work cannot be paid until dropping of audit para no VI(b) of 12/2018 by the Accountant General, Andhra Pradesh, Vijayawada."

17. The Paragraph No.14 of the Counter-Affidavit dated 14.07.2023 would indicate that the Official Respondents herein have submitted their replies to various queries made by the Accountant General Correspondence Letters by their replies dated 28.11.2019, 08.02.2021 and 09.12.2021. Insofar as, the execution of work by the Writ Petitioner is concerned, there does not seem to be any opposition to the fact that the Writ Petitioner has executed the work. Despite the fact that the Writ Petitioner, having executed the work even by March, 2018, as per the contents of this Affidavit, this Court is of the view that there is no reason as to why the Official Respondents have to withhold the payments due to the Writ Petitioner so far.

18. Only reason that is shown by the Official Respondents herein is that the issue of payment is presently pending with the Accountant General, Andhra Pradesh. This ground does not seem to be tenable to this Court, since the Official Respondents have been corresponding with the Accountant General from 28.11.2019 and upto 09.12.2021. It seems that there is stoic silence and inaction on the part of the Accountan.I General since the last correspondence by the Official Respondents dated 09.12.2021.

19. ln this view of the matter, this Court deems it appropriate to implead the Accountant General, Andhra Pradesh.

• 6. Sri S.Nagaraju, Ld. Assistant Government Pleader for Finance and Planning appearing on behalf of the Respondent No.5 is directed to convey the content of this Order forthwith to the respective Law Officer dealing with the issues of Accountant General. He shall also communicate a copy of this Order to the Department of Finance and Planning with a further direction that the Principal Secretary, Department of Finance and Planning to convey this Order to the Accountant General.

7. The Accountant General shall file an Affidavit indicatl-ng the current status of the case pertaining to the Writ Petitioner within a period of two weeks from today.

8. List the matter on 18.08.2023."

sd/-s. sRINIVAsA PRA§AD i AS RES !STRA-R

I

/ITRUE COPY// sECT!Ob€ Orr-iG-E=R

Fort

To,

• 1. The Principal Secretary, Municipal Administration Department, State of Andhra Pradeshl Secretariat BuildI-ngS, Velagapudi, Amaravathi, Guntur District
• 2. The Chief Engineer, Public Health, 5th FIoor, Garuda Enclave, TadepaIIi, Guntur District.
• 3. The Superintending Engineer, (PH) Rajahmahendravaram, East Godavari D istrict. a
• 4. The Executive Engineer, (PH) Rajahmahendravaram, East Godavari District.
• 5. The Principal Secretary, Department of Finance & Planning, State ofAndhra Pradesh, Secretariat Buildings, Velagapudi, Amaravathi, Guntur District. (1 to 5 by SPEED POST/SPECIAL MESSENGER)
• 6. One CC to Sri. Polanki Anand Surya, Advocate [OPUC]
• 7. Two CCs to GP for Municipal Administration, High Court ofAndhra Pradesh. [OUT]
• 8. One spare copy.

MSB

HIGH COURT

GRKP,J

DATED:04/08/2023

ORDER

LIST THE MATTER ON 18.08.2023

WP.No.5906 of 2023

INTERIM DIRECTION