Citation : 2024 Latest Caselaw 4601 AP
Judgement Date : 21 June, 2024
IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI
(Special Original Jurisdiction)
FRIDAY .THE TWENTY FIRST DAY OF JUNE
TWO THOUSAND AND TWENTY FOUR
PRESENT t I"
THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION NO: 10619 OF 2024
Between:
1. K Sridhar Reddy, S/o. K. Rama Krishna Reddy, Aged about 53 years,
R/o. Kosuvaripalli Village, Tamballapalle (M), Chittoor District
...PETITIONER
AND
1. The State Of Ap, Rep. by its Principal Secretary, Water Resources
Department, Secretariat Buildings, Velagapudi, Amaravathi, Guntur
District.
2. The State of AP, Rep. by its Principal Secretary Finance and Planning
Department, Secretariat Buildings, Velagapudi, Amaravathi, Guntur
District.
3. The Andhra Pradesh Center for Financial Systems and Services,
0/0.6th floor, C Block, Anjaneya Towers, Ibrahimpatnam, Krishna
District (Present NTR District)., Rep. by its Chairman cum Principal
Secretary Finance Department.
4. The Engineer in Chief (Irrigation),, Water Resource Department,
Irrigation Compound, Governorpet, Vijayawada, Krishna District.
(Present NTR District)
5. The Executive Engineer, Water Resource Department, Madanapalle,
Annamayya District.
6. The Deputy Executive Engineer, Irrigation Sub-division, Thamballapalle
@ Madanapalle, Annamayya District.
7. The Pay and Accounts Officer (Works and Accounts), Chittoor.
...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 Writ or Order or a direction, more in the form of writ of
' mandamus, declaring the inaction of the Respondents in not making
/payme'pt of Rs.8,89,742/- (Rupees eight lakhs eighty nine thousand seven
'hundred and forty two only) in total amount for the execution of Neeru -
Pragathi- Programme- Restoration of Check dam across Malreddy fields
. •hear Kosuvarivaripalli Village in Thambalapalli Mandal of Chittoor District
under Ag.No.330 DN /2018-19, dated 28.11.2018 as highly illegal, irregular,
arbitrary, unreasonable, unjustified, unfair and in violation of the Article 14,
19 and 21 of the Constitution of India and consequently direct the
Respondents to make the payment of aforementioned amount forthwith
along with interest @ 24. percentage P.A.,
lA NO: 1 OF 2024
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 pay an amount Rs.8,89,742/- (Rupees eight lakhs
eighty nine thousand seven hundred and forty two only) in total amount for
the execution of "Neeru -Pragathi- Programme- Restoration of Check dam
across Malreddy fields near Kosuvarivaripalli Village in Thambalapalli
Mandal of Chittoor District, under Ag.No.330 DN /2018-19, dated
28.11.2018 as executed by the petitioner along with interest @ 24% P.A.,
pending disposal of the writ petition.
Counsel for the Petitioner(s): SRI. T NAGARJUNA REDDY
Counsel for the Respondent Nos.1,4,6: GP FOR IRRIGATION COMM
AREA DEV
Counsel for the Respondent Nos.2,3,7: GP FOR FINANCE AND
PLANNING
The Court made the following: ORDER
tv
APHC010203962024
IN THE HIGH COURT OF ANDHRA PRADESH
AT AMARAVATI [3329]
(Special Original Jurisdiction)
FRIDAY ,THE TWENTY FIRST DAY OF JUNE
TWO THOUSAND AND TWENTY FOUR
PRESENT
THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION NO: 10619/2024
Between:
K Sridhar Reddy ...PETITIONER
AND
The State Of Ap and Others ...RESPONDENT(S)
Counsel for the Petitioner:
1.TNAGARJUNA REDDY
Counsel for the Respondent(S):
1.GP FOR FINANCE PLANNING
2.GP FOR IRRIGATION COMM AREA DEV
The Court made the following:
ORDER:
1. The petitioner had been awarded the contract of work(s) under
the subject scheme in Chittoor District. After execution of the said
contract, a final bill was prepared for a sum of Rs.8,89,742/- as per
the sanctioned orders. As the payment of the said amount has not
been made by the respondents, the petitioner has approached this
Court by way of this writ petition.
2. It is the contention of the petitioner that even though the
respondents admitted that the petitioner is entitled for payment of
the aforesaid su^m of money, no payment is being made. The
petitioner contends that such non-payment of money is clearly
arbitrary and high-handed requiring the interference of this Court.
3. This Court,! in various orders, including the judgment of a
learned Single Judge of this Court dated 05.10.2021 in
W.P.No.10038 of 2021 and batch had taken the view that such non
payment of dues is arbitrary and that such dues need to be cleared
by the respondents at the earliest.
4. On the other hand, learned Government Pleader for Irrigation
while admitting about the claim of the petitioner placed on record
the written instructions issued by the Executive Engineer,
Madanapalli, dated 06.05.2024, wherein it is stated that due to lack
of budget, payment was not made to the petitioner. Soon after
release of the budget, bill will be submitted for payment.
5. In view of the aforesaid directions of this Court in various
cases and after hearing the submissions of learned counsel for the
petitioner, learned Government Pleader for Irrigation this Writ
Petition is disposed of with a direction to the respondents to release
the amount of Rs.8,89,742/- to the petitioner, along with the
X interest (§) 6% per annum, in view of the judgment of the Hon'ble
Division Bench of this Court in Writ Appeal No.724 of 2021 and
batch dated 12.10.2023, within a period of six (06) weeks from the
date of receipt of a copy of this order. It would also be open to the
petitioner to agitate his claim for higher rate of interest, if any
payable by the respondents, in an appropriate forum. There shall be no order as to costs.
Consequently, Miscellaneous Petitions, if any, pending in this Writ Petition shall stand closed.
SDI- M. SRINIVAS
//TRUE COPY// assistant registrar
To, SECTION OFFICER
1. The Principal Secretary, Water Resources Department, Secretariat Buildings, Velagapudi, Amaravathi, Guntur District.
2. The Principal Secretary Finance and Planning Department, Secretariat Buildings, Velagapudi, Amaravathi, Guntur District.
3. The Chairman cum Principal Secretary Finance Department.Andhr a Pradesh Center for Financial Systems and Services, 0/0.6th floor, C Block, Anjaneya Towers, Ibrahimpatnam, Krishna District (Present NTR District).,
4. The Engineer in Chief (Irrigation), Water Resource Department, Irrigation Compound, Governorpet, Vijayawada, Krishna District. (Present NTR District)
5. The Executive Engineer, Water Resource Department, Madanapalle, Annamayya District.
6. The Deputy Executive Engineer, Irrigation Sub-division, Thamballapalle @ Madanapalle, Annamayya District.
7. The Pay and Accounts Officer (Works and Accounts), Chittoor.
8. One CC to SRI. T NAGARJUNA REDDY Advocate [OPUC]
9. Two CCs to GP FOR IRRIGATION COMM AREA DEV ,High Court Of Andhra Pradesh. [OUT]
10. Two CCs to GP For Finance and Planning, High Court of Andhra Pradesh at Amaravathi.[OUT].
11. Three CD Copies AL HIGH COURT
DATED:21/06/2024
ORDER
DISPOSING OF THE WP WITHOUT COSTS IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) FRIDAY ,THE TWENTY FIRST DAY OF JUNE TWO THOUSAND AND TWENTY FOUR
PRESENT
THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 10619 OF 2024
Between:
1. K Sridhar Reddy, S/o. K. Rama Krishna Reddy, Aged about 53 years R/o. Kosuvaripalli Village, Tamballapalle (M), Chittoor District ...PETITIONER AND
1. The State Of Ap, Rep. by its Principal Secretary, Water Resources Department, Secretariat Buildings, Velagapudi, Amaravathi, Guntur District.
2. The State of AP, Rep. by its Principal Secretary Finance and Planning Department, Secretariat Buildings, Velagapudi, Amaravathi, Guntur District.
3. The Andhra Pradesh Center for Financial Systems and Services, 0/0.6th floor, C Block, Anjaneya Towers, Ibrahimpatnam, Krishna District (Present NTR District)., Rep. by its Chairman cum Principal Secretary Finance Department.
4. The Engineer in Chief (Irrigation),, Water Resource Department, Irrigation Compound, Governorpet, Vijayawada, Krishna District. (Present NTR District)
5. The Executive Engineer, Water Resource Department, Madanapalle, Annamayya District.
6. The Deputy Executive Engineer, Irrigation Sub-division, Thamballapalle @ Madanapalle, Annamayya District.
7. The Pay and Accounts Officer (Works and Accounts), Chittoor.
...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 Writ or Order or a direction, more in the form of writ of mandamus, declaring the inaction of the Respondents in not making payment of Rs.8,89,742/- (Rupees eight lakhs eighty nine thousand seven hundred and forty two only) in total amount for the execution, of Neeru - Pragathi- Programme- Restoration of Check dam across Malreddy fields near Kosuvarivaripalli Village in Thambalapalli Mandal of Chittoor District under Ag.No.330 DN /2018-19, dated 28.11.2018 as highly illegal, irregular, arbitrary, unreasonable, unjustified, unfair and in violation of the Article 14, 19 and 21 of the Constitution of India and consequently direct the Respondents to make the payment of aforementioned amount forthwith along with interest @ 24, percentage P.A., lA NO: 1 OF 2024
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 pay an amount Rs.8,89,742/- (Rupees eight lakhs eighty nine thousand seven hundred and forty two only) in total amount for the execution of "Neeru -Pragathi- Programme- Restoration of Check dam across Malreddy fields near Kosuvarivaripalli Village in Thambalapalli Mandal of Chittoor District, under Ag.No.330 DN /2018-19, dated 28.11.2018 as executed by the petitioner along with interest @ 24% P.A., pending disposal of the writ petition.
Counsel for the Petitioner(s): SRI. T NAGARJUNA REDDY
Counsel for the Respondent Nos.1,4,6: GP FOR IRRIGATION COMM AREA DEV
Counsel for the Respondent Nos.2,3,7: GP FOR FINANCE AND PLANNING
The Court made the following: ORDER %
APHC010203962024
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI [3329] (Special Original Jurisdiction)
FRIDAY ,THE TWENTY FIRST DAY OF JUNE TWO THOUSAND AND TWENTY FOUR
PRESENT
THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION NO: 10619/2024
Between:
K Sridhar Reddy ...PETITIONER
AND
The State Of Ap and Others ...RESPONDENT(S)
Counsel for the Petitioner:
1.TNAGARJUNA REDDY
Counsel for the Respondent(S):
1.GP FOR FINANCE PLANNING
2.GP FOR IRRIGATION COMM AREA DEV
The Court made the following:
ORDER:
1. The petitioner had been awarded the contract of work(s) under
the subject scheme in Chittoor District. After execution of the said
contract, a final bill was prepared for a sum of Rs.8,89,742/- as per
the sanctioned orders. As the payment of the said amount has not
been made by the respondents, the petitioner has approached this
Court by way of this writ petition.
2. It is the contention of the petitioner that even though the
respondents admitted that the petitioner is entitled for payment of
the aforesaid sum of money, no payment is being made. The
petitioner contends that such non-payment of money is clearly
arbitrary and high-handed requiring the interference of this Court.
3. This Court, in various orders, including the judgment of a
learned Single Judge of this Court dated 05.10.2021 in
W.P.No.10038 of 2021 and batch had taken the view that such non
payment of dues is arbitrary and that such dues need to be cleared
by the respondents at the earliest.
4. On the other hand, learned Government Pleader for Irrigation
while admitting about the claim of the petitioner placed on record
the written instructions issued by the Executive Engineer,
Madanapalli, dated 06.05.2024, wherein it is stated that due to lack
of budget, payment was not made to the petitioner. Soon after
release of the budget, bill will be submitted for payment.
5. In view of the aforesaid directions of this Court in various
cases and after hearing the submissions of learned counsel for the
petitioner, learned Government Pleader for Irrigation this Writ
Petition is disposed of with a direction to the respondents to release
the amount of Rs.8,89,742/- to the petitioner, along with the ^ interest @ 6% per annum, in view of the judgment of the Hon'ble Division Bench of this Court in Writ Appeal No.724 of 2021 and
batch dated 12.10.2023, within a period of six (06) weeks from the
date of receipt of a copy of this order. It would also be open to the
petitioner to agitate his claim for higher rate of interest, if any
payable by the respondents, in an appropriate forum. There shall be
no order as to costs.
Consequently, Miscellaneous Petitions, if any, pending in this
Writ Petition shall stand closed.
SD/- M. SRINIVAS
//TRUE COPY// assistant registrar
To, SECTION OFFICER
1. The Principal Secretary, Water Resources Department, Secretariat Buildings, Velagapudi, Amaravathi, Guntur District.
2. The Principal Secretary Finance and Planning Department, Secretariat Buildings-Velagapudi, Amaravathi, Guntur District.
3. The Chairman cum Principal Secretary Finance Department.Andhr a Pradesh Center for Financial Systems and Services, 0/0.6th floor, C Block, Anjaneya Towers, Ibrahimpatnam, Krishna District (Present NTR District).,
4. The Engineer in Chief (Irrigation), Water Resource Department, Irrigation Compound, Governorpet, Vijayawada, Krishna District. (Present NTR District)
5. The Executive Engineer, Water Resource Department, Madanapalle, Annamayya District.
6. The Deputy Executive Engineer, Irrigation Sub-division, Thamballapalle @ Madanapalle, Annamayya District.
7. The Pay and Accounts Officer (Works and Accounts), Chittoor.
8. OneCCto SRI. T NAGARJUNA REDDY Advocate [OPUC]
9. Two CCs to GP FOR IRRIGATION COMM AREA DEV ,High Court Of Andhra Pradesh. [OUT]
10. Two CCs to GP For Finance and Planning, High Court of Andhra Pradesh at Amaravathi.[OUT].
11. Three CD Copies AL 'X
HIGH COURT
€
DATED:21/06/2024 \
ORDER
WP.No.10619of 2024
'A-
01| JUL 202't rrsf-
^ 3s€U<w /y
DISPOSING OF THE WP WITHOUT COSTS
I
IN THE HIGH COURT OF ANDHRA PRADESH: AMARAVATI
HON'BLE MR.JUSTICE DHIRAJ SINGH THAKUR, CHIEF JUSTICE & HON'BLE MR. JUSTICE NINALA JAYASURYA
W.A.Nos.724, 725, 726, 729, 730, 733, 740, 741, 743, 754, 755, 758, 764 to 774, 776 to 783, 785, 786, 789, 790, 791, 799, 804, 811, 813, 816, 818, 819, 824, 825, 828, 830, 835 to 846, 848, 849, 850, 853 to 863, 870, 871, 875, 876, 878, 879, 881 to 885, 887, 891 to 908, 911, 912, 915, 917, 918, 919, 922, 924, 925, 928 to 932, 934, 938, 940 to 950 of 2021; W.A.Nos.1 to 5, 9, 11, 12, 14, 15, 16, 18, 21, 25, 28, 30, 31, 33, 37 to 50, 56 to 62, 64 to 71, 73, 76, 79, 84, 89, 90, 97, 98, 100, 101, 105, 106, 108, 109 to 115, 118 to 125, 130, 132 to 138, 146, 150, 155, 158, 160 to 162, 164, 165, 167, 170 to 176, 178, 179 to 188, 190, 191, 193, 198, 199, 200, 202, 208, 209 to 231, 233, 235, 236, 239, 243 to 252, 254 to 259, 263, 264, 265, 267, 269 to 273, 275, 276, 278, 279, 280, 281, 283, 284, 302, 303, 304, 305, 307, 308, 309, 310, 312, 313, 315, 316, 318 to 325, 330, 332, 334, 337, 343, 346, 348 to 354, 357, 358, 365, 367 to 371, 379, 380, 384, 385, 395, 397, 403, 405, 408,417,418, 420 to 423, 425, 428, 429, 443, 445, 453, 454, 478, 479, 480, 485, 488, 493, 499, 508, 510, 516, 568, 625, 2878, 4888, 11873, 14828, &16572 of 2022; W.A.Nos.97, 99, 100, 101, 102, 103, 104, 105, 108, 111, 112, 113, 114, 115, 116 & 117 of 2023; W.A.Nos.991, 989, 1059, 1067, 1069, 1070, 1074, 1076 & 1079 of 2022 and W.A.Nos.4 to 10, 14, 22 to 25, 27, 32, 34, 35, 36, 37, 40, 41, 43, 44, 47, 48, 50 to 59, 61 to 71, 73 to 88, 90 to 93, 95, 96, 119 to 134, 136 to 138, 141 to 144, 147 to 153, 155, 156, 159, 160, 166, 175 to 186, 191, 199, 201, 210, 217, 224, 225, 233, 238, 248, 250, 268, 352, 361, 371, 372, 373, 376, 386, 387, 432, 479, 487, 491 to 493, 576, 578, 579, 582, 592, 594, 596, 599 & 604 of 2023&603of2023.
W.A.No.724of2021:
The State of Andhra Pradesh, rep., by its Principal Secretary to Governrhent, Panchayat Raj and Rural Development Department, Velagapudi, Amaravati, Guntur District, Andhra Pradesh 8e 7 others. ...Appellants
Versus
Nagabo3rina Satyavathi, W/o.Kasiviswanath, aged 39years, OccrProperties, R/o.Nabeepeta Village, Nallajarla Mandal, West Godavari District &? 2 others. ... Respondents
Counsel for the Appellants : Learned Advocate General a/w GP for Panchayat Raj & Rural Development Counsel for the 1®*^ respondent : Smt.Nimmagadda Revathi Coimsel for the 2"'^ respondent : Sri W. Srihari, learned Standing Coimsel Counsel for the respondent ; Government Pleader for Finance & Planning
Along with hatch 2 HCJ a NJS, J W.A_724_2021 a batch .
Dt.:12.10.208g
PER DHIBAJ SINGH THAKUR. CJ
The present batch of appeals under Clause 15 of the Letters
Patent have been preferred against a conunon judgment and order
dated 05.10.2021 passed in WP.No.ll511 of 2021 and other
connected matters.
1.1 Since the issues of fact and law are common, we propose
to dispose of aU the present Letters Patent Appeals by way of a
common judgment and order.
1.2 For facility of reference, facts as contained in the
records of WA.No.724 of 2021 aj?e being referred to.
2. Briefly stated, the material facts are as under:
2.1 A batch of writ petitions came to be preferred by the
petitioners wherein the petitioners sought a writ of Mandamus
directing the respondents to release the pa3mient oh account of the
cost of the material supplied and work done under the various
schemes of Mahatma Gandhi National Rural Employment
Guarantee Act, 2005, and the regulations framed thereunder.
HCJ a NJS, J
W.A_724_2021 a batch
2.2 The case of the petitioners was that the material had
been supplied and works executed in entirety and further that the
expenditure of material supplied and the work executed had been
entered into in the relevant measurement books and verified by the
concerned engineers who had supervised the work. It was thus
urged that withholding the amount which was otherwise due and
payable to the petitioners was illegal and arbitrary.
2.3 The stand of the respondents and in particular the
Panchayat Raj and Rural Development Department was that there
were large scale allegations received from general public as also
public representatives in regard to execution of projects under
Mahatma Gandhi National Rural Employment Guarantee Scheme
[MGNREGS] by the Panchayat Raj and Rural Development, Water
Resources Development and Higher Education Departments. A
Government Memo bearing No.l202/Vig.I/2020-4, dated
05.05.2020, came to be issued wherein, based upon the report of
the General Administration Department recommending initiation of
disciplinaiy action against erring Government officials, the General Administration Department also recommended that the department
of Panchayat Raj and Rural Development gets verified all works
taken up under MGNREGS to curb payment to fraudulent works
and to safeguard the Government funds.
HCJ a NJS, J 4 W.A_724_2021 a batch
2.3.1 The Government Memo, dated. 05.05.2020,
accordingly ordered as under:
"Government, after careful examination of the matter, hereby decided that all the material component works taken up umder MGNBBGS in Panchayat Baj Rural Development Department during the period from October, 2018 to 31st
May, 2019 shiah he verified by the Vigilance & Quality Oontrol wings of Panchayat Raj Engineering Department, Rural Water Supply & Sanitation Engineering Departments, Technical persons in SSAAT and Quality Control wing of Commissioner, Panchayat Raj and Rural Development by forming Teams. As the number of works executed under MGNBEGS are quiet large, the enquiry/veriflcation of works shaU be taken up with the works executed with higher denominations, The verification of the works shall be started immediately and should be completed in a time bonmd manner not later than a period of six months.'
2.4 It appears that the Principal Secretary to Government, Panchayat Raj and Rural Development Department, vide Memo No.l263069/RD.n/Al/2020, dated 05.11.2020, based upon the report of the Commissioner, PR & RD, stated that out of a total 7,95,494 works executed under MGNREGS, a sample consisting of 11,918 works, had been verified by the special vigilance teams and out of the works verified by the vigilance teams, it was noted in
62.51% of the works, the vigilance teams either recommended
rejection of the works or found that the amounts paid ought to be I
recovered in regard to the said projects. It was thus reported that
in monetary terms both recovery and rejection calculated together came to 21.02% in District Coordination Committee [DCC] works The and 6.33% in Mandal Coordination Committee [MCC] works.
HCJ a NJS, J 5 W.A_724_2021 a batch
Government finally in the Memo, dated 05.11.2020, in paragraph
No.5 ordered as under:
"3. Accordingly, the Govt., after careful examination of the matter, hereby approve the proposal of Commissioner, PR &? RD and accordingly permit to release an amoimt of Rs.409.69 Crores for the total 7,27,205 number of works that are having estimated cost upto Rs.5.00 lakhs with the deduction of 21.02% for DOC works and 6.33% for MCG works as
proposed."
2.5 By virtue of another Memo, dated 12.05.2021, the
Government permitted the release of pending payments of the
works above Rs.5,00,000/- executed between the period from
01.10.2018 to 31.05.2019 by applying the recovery of 21.02% of
the DOC works and 6.33% for MCG works. Paragraph No.3 of the
Memo, dated 12.05.2021, is reproduced hereunder:
"3. Accordingly, the Government after examination of the matter, hereby approve the proposal of Commissioner, PR 8e RD and accordingly permit him to release pending payment of the works above Rs.5.00 Lakhs which were taken-up under MGNREG Scheme between the period from 01.10.2018 to 31.05.2019 appljdng the abstract of findings on recovery for the works verified that is applying recovery of 21.02% for DCC works and 6.33% for MCG works duly following aU the guidelines prescribed by the Gol, MoRD and State Government from time to time in release of pa3mients."
2.6 It is in the aforementioned backdrop that the writ
petitions were filed challenging the action of the official respondents HCJ & NJS, J 6 W.A_724_2021 a batch
in withliolduig the amounts which amoimts according to the
petitioners were legitimately payable to them.
2.7 The learned single Judge by virtue of common judgment
and order, dated 05.10.2021, impugned in the present appeals
allowed the writ petitions and set aside Memos, dated 05.11.2020
and 12.05.2021, issued by respondent ISFo.l in the writ petitions to
the extent it ordered the deduction of 21.02% for DOG works and
6.33% for MCC works while making payments to the petitioners.
2.8 The basis for setting aside the Memos, dated 05.11.2020
and 12.05.2021, primarily was that decision to deduct the amounts
mentioned in the aforementioned Memos was without affording to
the petitioners any opportunity of being heard. It was also held that
no notice was issued to the petitioners with regard to the alleged
enquiry conducted by the official respondents based upon which the
Memos were so issued.
2.9 An objection raised by the official respondents before
the learned single Judge with regard to the maintainability of the
writ petition on contractual matters was also rejected by placing
reliance upon the Apex Court judgment in ABL RttemationaJ
Limited v. Expert Credit Guarantee Corporation of Lidia Limited
[(2004) 3 SCO 553] to the extent it held that there was no absolute HCJ a NJS, J 7 W.A_724_2021 a batch '
bar of entertaining a writ petition even if the same arose out of a
contractual obligation or involved, disputed questions of fact.
3. Learned Advocate General, Mr. S. Sriram, appearing for
the appellants-State vehemently urged that the view expressed by
the learned single Judge in setting aside the Memos, dated
05.11.2020 and 12.05.2021, was legally not correct. It was urged
that there was sufficient material with the Government based upon
verification conducted in as many as 11,918 works wherein the
vigilance teams had found that works done was either to be rejected
or even recoveries were required to be ordered. It was, in those
circumstances, urged that the Government had taken a decision to
•pay the amoimt on account of material supplied/work done less the
percentage reflected in the two Memos dated 05.11.2020 ajid
12.05.2021.
3.1 It was urged that the aforementioned two Memos, in-
fact, were enabling orders which would facilitate payment to the
petitioners notwithstanding the fact that the entire amoimt could
have been withheld by the Government pending vigilance enquiry
into each one of the contracts executed by the petitioners under the
said schemes.
HCJ a NJS, J
W.A_724_2021 a batch
3.2 It was also urged that in view of the settled position of
law, where there was enough material like in the present case which
was availahle in the shape of report of the vigilance department,
who had conducted the verification in 11,918 works, the State
would have been justified ui refusing to pay what was even
otherwise made payable by way of two Memos dated 05.11.2020 &
12.05.2021. The petitioners, it was stated could very easUy be
relegated to avail their common law remedies.
3.3 It was also urged that in another batch of writ petitions
[WP.lSro.955 of 2021 &? batch], as many as 73 cases, involving
identical issues came to be decided by virtue of judgment and order.
dated 16.03.2021, wherein direction was given to the Government
to release the payment for all works upto Rs.5,00,000/-, after
deduction of 21.02% for DCC works and 6.33% for MCC works
within thirty days and further that if the enquiry revealed that
there was no. deficiencies in the work for these categoiy of works.
the deducted amount be also released. In case of works of value of
above Rs.5,00,000/-, two months period was given to the
respondents to complete the enquiries and to pass appropriate
orders in each case so that the petitioners receive the entire
payment due to them.
HCJ a NJS, J
W.A_724_2021 a batch
3.4 It was thus urged that while one single Bench of this
court permitted the Government to conduct an enquiry before
payment is made in terms of works with the value of Rs.5,00,000/-
and directed payment of the amount minus the deduction as
envisaged under Memo, dated 05.11.2020, the judgment and order
. . impugned in these appeals proceeded to totally quash the said
Memo along with another Memo, dated 12.05.2021, taking away
the right of the Government to conduct an enquiry.
3.5 , It was also urged by learned Advocate General that the
writ appeals preferred by the Government in the cases filed by the
petitioners and standing at item Nos.408 to 566 in the cause hst
were aU cases where vigilance teams had found that the work was
deficient and sub standard. That is stated to be one reason why the
Government is stated to have filed review petitions before the writ
Court highlighting this particular aspect of the matter.
3.6 The learned Advocate General however very fairly
stated that even when the Memos dated 05.11.2020 and
12.05.2021, did not envisage payment of any amount other than
prescribed under the two memos after making deductions at the
rates prescribed therein, yet, it was urged that following the
. judgment of the learned single Judge rendered in WP.lNro.955 of HCJ a NJS, J 10 W.A_724_2021 a batch
2021 & batch, the State may be permitted to veri:ty and conduct the
enquiry if necessaiy with regard to the works executed by the
petitioners and in case the works were not foimd defective or sub
standard, even the balance amount would be paid.
4. Learned counsel for the respondents - writ petitioners
however are not averse to such a proposal.
5. With the consent of the counsel for the writ petitioners
as also the learned Advocate General, the following order is being
passed:
(a) The petitioners would be paid, if not already paid, the
amount in terms of the Memos dated 05.11.2020 and 12.05.2021,
within one month from today.
(b) The Government would be at liberty to conduct an
enquiry after affording to the petitioners an opportunity of being
heard with regard to the works executed by them within the period
from 01.10.2018 to 31.05.2019. The enquiries, if initiated, would
be completed^ within four months fpom today.
(c) in case the works are as per standards, the petitioners
would be paid not only the balance amoimt but also interest
calculated at the rate of 6% per annum on the entire amount with HCJ & NJS, J 11 W.A_724_2021 a batch
effect from the date when the bills were submitted by the
petitioners for payment till the date of final payments.
(d) Such of the petitioners who had executed works much
before the period of 01.10.2018 would be paid, if not already paid,
the entire amount due and payable to them within a period of one
month from today, with interest calculated at the rate of 6% per
annum with effect from the date when the bills were submitted by
the petitioners for pa3rment tiU the date of final payments.
6. The common judgment and order impugned shall stand
modified accordingly.
7. The Writ Appeals are accordingly disposed of. No order
as to costs.
Miscellaneous applications pending, if any, shall stand closed.
DHIRAJ SINGH THAKUR, CJ NINALA JAYASURYA, J
Vjl HCJ a NJS, J 12 W.A_724_2021 a batch
HON'BLE MR.JUSTICE DHIRAJ SINGH THAKUR, CHIEF JUSTICE & HON'BLE MR. JUSTICE NINALA JAYASURYA
WA.No.784 of 8081 & batch
Dt:18.10.8083
Vjl
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