THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN
AND
THE HON'BLE SRI JUSTICE N. TUKARAMJI
WRIT APPEAL No.721 of 2022
JUDGMENT: (Per the Hon'ble the Chief Justice Ujjal Bhuyan)
Heard Mr. A.Sanjeev Kumar, learned Special
Government Pleader attached to the office of learned
Additional Advocate General appearing for the appellants-
State and Mr. D.V.Seetharama Murthy, learned Senior
Counsel representing Mr. Kondaparthy Kiran Kumar, learned
counsel for the respondent/writ petitioner.
2. This appeal is directed against the order dated 17.08.2022 passed by the learned Single Judge allowing Writ Petition No.20290 of 2021 filed by the respondent as the petitioner.
3. Respondent had filed the related writ petition assailing the inaction of the appellants in not making payments to the respondent for supply of health and hygiene kits in pursuance to Notice Inviting Tender (NIT) dated 2 HCJ & NTRJ W.A.No.721 of 2022 02.05.2018 and consequential agreements entered into by the respondent with the appellants.
4. Appellant No.3 had issued NIT dated 02.05.2018 inviting bids from eligible bidders for supply of health and hygiene kits containing 15 items to be provided to the girl students of various schools in the State of Telangana.
5. Following the tender process, respondent qualified for all the then ten districts whereafter agreements were entered into between appellant No.1 and the respondent. It may be mentioned that though the respondent had quoted bid of Rs.437.75 per kit, following negotiations it was reduced to Rs.420.84.
6. Thereafter agreements were entered into between 1st appellant and the respondent, the period of supply being from 31.05.2018 to 31.05.2019 which period was subsequently extended till 30.11.2019.
7. According to the respondent, it had supplied the kits to the girl students attached to the different schools.
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Though part payments were made, entire payments were not made. Despite exchange of correspondence, the amounts were not paid. It may be mentioned that there was an enquiry by the Vigilance and Enforcement Department as to award of contract by the appellants. Ultimately, W.P.No.20290 of 2021 was filed by the respondent for release of the contractual dues, which was contested by the appellants by filing counter affidavit.
8. Finally learned Single Judge vide the order dated 17.08.2022 held that according to the respondent, the total payment due is Rs.38,60,91,826.00 whereas according to the appellants, the amount due to the respondent is Rs.38,05,49,276.00. Thus, the differential amount of Rs.55,42,550.00 was found to be disputed.
8.1. On the above basis, learned Single Judge directed the appellants to release the admitted amount of Rs.38,05,49,276.00. Insofar payment of interest is concerned, learned Single Judge directed that the admitted amount be 4 HCJ & NTRJ W.A.No.721 of 2022 paid with interest of 9% per annum from the date when the amount became due till the date of payment.
9. It is this order which has been questioned by the appellants.
10. While there can be no dispute to the direction of the learned Single Judge as to release of the admitted amount of Rs.38,05,49,276.00, we are of the view that in a proceeding under Article 226 of the Constitution of India, awarding of interest on contractual dues, even if admitted, can at the best be a summary exercise.
11. We do not find any material on record justifying award of interest at 9% per annum.
12. We are therefore of the view that the interest portion be reduced to 6% on the admitted amount leaving the respondent to avail the remedy not only for the disputed principal amount but also on the interest amount, both on the admitted as well as on the disputed amount before the competent civil Court having jurisdiction.
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13. Accordingly, we modify the order of the learned Single Judge dated 17.08.2022 by reducing the interest from 9% to 6% per annum but with liberty to the respondent to avail his remedy vis-a-vis the disputed amount and higher interest as explained supra.
14. Let the admitted amount with the interest as modified be paid by the appellants to the respondent within three (03) weeks from today.
15. Writ Appeal is accordingly disposed of. However, there shall be no order as to costs.
16. As a sequel, miscellaneous applications pending, if any, in this Writ Appeal, shall stand closed.
_______________________ UJJAL BHUYAN, CJ _______________________ N.TUKARAMJI, J Date: 27.02.2023 KL