Andhra Pradesh High Court - Amravati
Katta Chinna Kotaiah vs The State Of Andhra Pradesh on 30 April, 2022
HONOURABLE SRI JUSTICE M. GANGA RAO
Writ Petition No.3507 of 2020
ORDER:
This writ petition is filed to issue a writ, order or direction more
particularly in the nature of Writ of Mandamus or any other
appropriate writ, declaring the action of the respondents in not paying
the final bills to the petitioner in respect of the Agreement No.2/2018-
2019 dated 24.10.2018 in Neeru Chettu Programme, for essential
repairs to Canal, strengthening of banks on Inumella Major from K.M.
7.470 to K.M 10.60 in Block No.11 A of Nagarjuna Sagar Jawahar
Canal near Chittapurama Village, Ipur Mandal, Guntur District, even
after approval of the First and Final Bill payable to the petitioner by
the respondents 1 to 3 is arbitrary and illegal.
2. The case of the petitioner is that he was entrusted with the
work of essential repairs to Canal, strengthening of banks on
Inumella Major from K.M. 7.470 to K.M 10.60 in Block No.11 A of
Nagarjuna Sagar Jawahar Canal near Chittapurama Village, Ipur
Mandal, Guntur District and agreement No.2/2018-2019 dated
24.10.2018 was entered with the 2nd respondent - Executive
Engineer, NSJC O&M and SIFT Division, Vinukonda, Guntur District
for contract value of Rs.9,99,000/- with the stipulated completion
period of work as 90 days. As per the terms and conditions of the
agreement, the petitioner started the work immediately and completed
the work in all respects as per the agreement conditions and period.
After measurement of the work and quality and vigilance check, the
bills submitted on 13.3.2019 were approved by the 2nd and 3rd
respondent and sent for payment to the Treasury and Accounts
Department, whereas the 1st respondent is not releasing the amount
of bills payable to the petitioner on the ground that the Government
initiated enquiry on all the works carried under Neeru Chettu
programme in the State and directed the Director General, Vigilance
and Enforcement authority to submit a report vide Memo dated
29.8.2019. Non-payment of the final bills pending enquiry by the
authority is against the terms of the agreement and the enquiry is
initiated only to defer the payments, which is illegal and arbitrary.
Being aggrieved by the inaction of the respondents in not paying the
bill amount to the petitioner, the present writ petition is filed.
3. The 1st respondent filed counter stating that the Government
entrusted the work to the petitioner vide agreement dated 24.10.2018.
Clause No.3 of the agreement deals with "Adjudication of disputes".
The writ petition is not maintainable before this court for
adjudication. The petitioner claimed that the bills forwarded to Pay
and Accounts Office are undisputed but the bills were returned
stating that they are disputed amounts. The Principal Secretary to
Panchayat Raj and Rural Development Department vide Letter dated
1.8.2019 instructed the Director General, Vigilance and Enforcement,
Vijayawada to conduct discreet enquiry on all the works carried out
under "Neeru Chettu" programme in the State and to furnish the
report to take further necessary action. The enquiry is not yet
completed, however, there are several irregularities committed in
execution of Neeru Chettu programme. Hence, the payment of bills to
the petitioner could not be said to be undisputed bills.
4. Sri Prabhunath Vasireddy, learned counsel for the petitioner
vehemently submits that the petitioner was entrusted with the work
under agreement and the same was completed as per the terms and
conditions of the agreement. Part and final bill submitted by the
petitioner were verified and check measured and certified by the
quality control and Vigilance Department and the 2nd and 3rd
respondents submitted the bills for payments. At that stage, the
Government initiated enquiry in all the works executed under Neeru-
Chettu programme. Accordingly, the Director General, Vigilance and
Enforcement Department has initiated enquiry but nothing against
the petitioner is submitted so far. Even as per the report submitted
by the Vigilance and Enforcement, there are no adverse reports
against the petitioner and withholding the payment of the petitioner is
arbitrary and illegal. For payment of the undisputed bills by the
respondent authorities and for withholding the same, the petitioner
can approach this Court under Article 226 of the Constitution of India
as held by the Apex Court in Surya Constructions Vs. State of Utter
Pradesh and others1, following the judgment in ABL International
Ltd. Vs. Export Credit Guarantee Corporation of India Ltd.2.
Following the same, several writ petitions were disposed of on similar
lines by this Court. The Government preferred writ appeals and the
Division Bench has not stayed the order passed in similar set of
cases.
4. Sri C. Suman, learned Special Government Pleader appearing
for Advocate General appearing for the respondents while reiterating
the averments of the counter states that the bills submitted by the
petitioner are disputed as the Finance Department returned the same.
On the ground that the Vigilance and Enforcement enquiry is pending
in all the works of Neeru Chettu programme, the bills are not released
and when once the dispute arises, the writ petition is not
maintainable and he placed reliance on the decision of the Apex Court
(2019) 16 SCC 794
(2004) 3 SCC 553
in Joshi Technologies vs Union Of India & Ors3, wherein at Para
69.2 and 69.4 it is held as follows:
"Whenever a particular mode of settlement of dispute is
provided in the contract, the High Court would refuse to
exercise its discretion under Article 226 of the Constitution and
relegate the party to the said made of settlement, particularly
when settlement of disputes is to be resorted to through the
means of arbitration.
Money claims per se particularly arising out of
contractual obligations are normally not to be entertained
except in exceptional circumstances."
5. Having considered the facts and circumstances of the case,
submissions of the learned counsel and on perusal of the material
record, this Court found that the work for essential repairs to Canal,
strengthening of banks on Inumella Major from K.M. 7.470 to K.M
10.60 in Block No.11 A of Nagarjuna Sagar Jawahar Canal near
Chittapurama Village, Ipur Mandal, Guntur District was entrusted to
the petitioner vide agreement dated 24.10.2018 and he completed the
work as per the terms and conditions of the agreement. The
respondents 2 and 3 who are agreement holders with the petitioner
approved the bills submitted by the petitioner on 13.3.2019 after
satisfying that the work was completed, measured and quality control
and vigilance reports were also taken and bills were forwarded for
payment to the Treasury and Accounts Department. The Finance
Department returned the bills on the ground that the Government
has taken a decision to enquire into all the works in Neeru Chettu
programme as several works are not properly completed and there are
several irregularities. The Director General of Vigilance and
Enforcement has proceeded with the enquiry but nothing adverse is
stated against the works executed by the petitioner. In those
(2015) 7 SCC 728
circumstances, mere return of the bills by the Finance Department,
pending enquiry cannot be countenanced and concluded that the
dispute is with regard to rising of the bills. The Apex Court and this
Court in catena of decisions held that when there is non-payment of
the undisputed bills, the same is violative of Articles 14 and 16 of the
Constitution of India. The counsel for the petitioner rightly placed
reliance on the decision of the Apex Court in Surya Constructions
Vs. State of Utter Pradesh and others, following the judgment in
ABL International Ltd. Vs. Export Credit Guarantee Corporation
of India Ltd cited supra. In view of the Apex Court judgment, the
contention of the learned Government Pleader that the writ petition is
not maintainable before this Court could not be countenanced. The
bills of the petitioner dated 13.3.2019 are admitted by the
respondents and forwarded for payment after due measurements and
obtaining quality control and the Vigilance report. Hence, the
authorities are estopped from stating that the bills are submitted
without executing the works. On the mere ground of pendency of
Vigilance report, payment cannot be stopped. Accordingly, there shall
be a direction to the respondents to pay the bill amount of
Rs.8,14,402/- to the petitioner within a period of six weeks from the
date of receipt of 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: .04.2022
CSR
HON'BLE SRI JUSTICE M. GANGA RAO
W.P.No.3507 OF 2020
DT: .4.2022
CSR
