Telangana High Court
The State Of Telangana vs M/S Maa Yarn And Fibres on 27 February, 2023
Bench: Ujjal Bhuyan, N.Tukaramji
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
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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
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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
