G Srinivasa Reddy vs. The State Of Andhra Pradesh

HONOURABLE SRI JUSTICE M. GANGA RAO

Writ Petition No.16986 of 2022

ORDER:

This writ petition is filed to issue an appropriate writ, order or direction in the nature of writ of mandamus declaring the action of the respondents in not initiating any steps for rectifying the impediments in generating Fund Transfer Order (FTOs) in relation to the payments made to the petitioner of an amount of Rs.21,00,000/ the value of the completed work, in spite of uploading the same by the Division Office in CFMS portal after a lapse of 7 ½ months of the bill submission date with interest @ 18% p.a. from the date of default to till the date of payment as illegal and arbitrary.

2. The petitioner has entered into an agreement on 27.12.2017 with the 2nd respondent in respect of the work of construction of Kreeda Vikasa Kendram at GJC College Ground (Raja Ground), Rattakanna (V) in Ichapuram (M) of Srikakulam District. After handing over of the site on 18.05.2018, as per the schedule, in a span of 2 ½ months the work upto the plinth level was completed amounting to the value of Rs.30.50 lakhs and the lumpsum 1st and part bill for the work done portion for an amount of Rs.21.00 lakhs has been submitted on 30.07.2018 which was uploaded in CFMS portal after a lapse of 7 ½ months of the bill submission date but the same has not been released and paid so far. Aggrieved by the same, the present writ petition is filed.

3. Sri M.V.Raja Ram, learned counsel appearing for Sri K.Saidulu, Advocate on Record states that having approved the bills with CFMS Token No.2019-466323 dated 23.4.2019, non-payment of bill amount is arbitrary and illegal. The Hon'ble Apex Court and this Court in

catena of decisions held that non-payment of admitted bills is illegal and arbitrary and the respondents are under obligation to pay the bills within reasonable time.

$4.$ Learned Government Pleader for School Education admitted completion of the work and the bills for release of an amount of Rs.21,00,000/- is submitted under CFMS for onward payment to the petitioner and the bill is pending for clearance.

$5.$ Having regard to the facts and circumstances of the case, submissions of the learned counsel and on perusal of the material record, this Court, following the dicta laid down by the Apex Court in the case of ABL International Ltd., and another Vs. Export Credit Guarantee Corporation of India Ltd., and others¹ and the High Court of Andhra Pradesh in J. Devendra Reddy Vs. Kakatiya University and another² found that the non payment of admitted bill amount to the petitioner covered by CFMS number is illegal and arbitrary and violative of Articles 14 and 21 of the Constitution of India. Accordingly, this Court felt it appropriate to dispose of this writ petition directing the respondents to pay the admitted bill amount of Rs.21,00,000/- covered by CFMS Token No.2019-466323 dated 23.4.2019 to the petitioner within a period of six $(6)$ weeks from the date of receipt of a copy of this order.

6. Accordingly, the Writ Petition is disposed of. No order as to costs.

As a sequel thereto, miscellaneous petitions, if any, pending shall stand closed.

M. GANGA RAO, J

Date: 03.08.2022 $CSR$

$^{1}$ (2004) 3 SCC 553

$2015(3)$ ALD 97

HON'BLE SRI JUSTICE M. GANGA RAO

W.P.No.16986 OF 2022

DT:03.08.2022

CSR