Andhra Pradesh High Court - Amravati
Maytas Infra Ltd vs Govt Of A.P Rep.By Prl Secretary 4 ... on 5 October, 2023
THE HON'BLE SRI JUSTICE TARLADA RAJASEKHAR RAO
WRIT PETITION No.6587 OF 2011
ORDER:
This Writ Petition is filed under Article 226 of the
Constitution of India for the following relief:-
"... to issue "Writ of Mandamus" or any other
appropriate writ, order or direction declaring the
action of the respondents in Unlawful deducting
interest on mobilization advance paid to the
petitioner @10.5% per annum instead of 8% per
annum as agreed upon by the parties under the
Agreement dated 25.10.2004 in respect of the
works Chitravati balancing reservoir Right
canal (Lingala Canal) from K.M.0/0 to
K.M.53/0 and its distributries including
construction of CM&CD works etc, complete to
irrigate an ayacut of 25,000 acres (Approx)
Including construction of link canal to P.B.C.,
cross regulator and head regulator lift irrigation
system, supply and fabrication of hydro
mechanical components and erection of vertical
gates, stop log gates and its accessories of
Lingala Irregation scheme in Cuddapah District
as illegal, arbitrary and unconstitutional and
set aside the said action and consequently
direct the respondents to refund the amounts
unlawfully withheld forthwith and pass such
other order or orders..."
2. Facts of the case in nut-shell are as follows:
(a) The petitioner herein is the highest bidder for the
work i.e., Chitravati Balancing Reservoir Right Canal (Lingala
Canal) from K.M.0/0 to K.M.53/0 and its distributaries. The
respondents have also awarded additional work vide
supplementary agreement No.2SE/2007-08, dated 18.05.2007
and the petitioner was also granted a Mobilization Advance of
Rs.8,39,20,000/- in respect of works to be carried out by the
petitioner.
(b) In pursuance of commencement of the works, the
petitioner would submit Monthly Running Bills ('R.A. Bills') in
respect of the quantities of work undertaken for each month.
Such bills were to be submitted by the 18th of each Gregorian
calendar month and upon the same being verified and certified
by the 4th respondent, the bills would be transferred to the 5th
respondent for clearance and for disbursement of the amounts.
(c) As per Article 49.4 of the bid document, the interest
that has to be levied on the Mobilization Advance was only 8%
per annum. But, the respondents herein are charging 10.5%
per annum. Aggrieved by the said action of the respondents, the
present writ petition came to be filed.
3. Heard learned counsel for the petitioner and learned
Government Pleader appearing on behalf of the respondents.
4. Learned counsel for the petitioner would rely on
W.P.No.34047 of 2013, dated 12.02.2014, the Composite High
Court of Andhra Pradesh, in similar circumstances, had found
fault with deducting excess amount towards interest on
mobilization advance given to the contractors by following the
judgment in W.P.No.16787 of 2012. The said writ petition was
assailed by the State in appeal vide W.A.No.150 of 2022, the
High Court of Telangana at Hyderabad by an order dated
07.03.2022, observed that declaring the deduction of 10.5% per
annum of interest for Mobilization Advance was illegal and
dismissed the appeal, confirming the orders of learned single
judge.
5. In view of the orders of the Division Bench in W.A.No.150
of 2022, confirming the orders of learned single judge passed in
W.P.No.34047 of 2013, which arises out of the order in
W.P.No.16787 of 2012, this Court is inclined to pass similar
order, as ordered in W.P.No.34047 of 2013.
6. Accordingly, the Writ Petition is allowed. The respondents
are hereby directed to pay excess amount, which was deducted
excess as 2.5%, within a period of six (06) weeks from the date
of receipt of a copy of the order. There shall be no order as to
costs.
As a sequel, miscellaneous petitions, if any, pending in this
writ petition shall stand closed.
________________________________________
JUSTICE TARLADA RAJASEKHAR RAO
Date: 05.10.2023
KBN
THE HON'BLE SRI JUSTICE TARLADA RAJASEKHARA RAO
WRIT PETITION No.6587 OF 2011
Date: 05.10.2023
KBN
