Facts of the Case

The petitioner had been awarded a contract for works under the 'Neeru-Chettu' scheme in Vizianagaram District. After execution of the contract, a final bill of Rs. 7,41,085 was prepared as per sanctioned orders, but payment was not released. The Government Pleader for Irrigation, relying on instructions from the Executive Engineer, Vizianagaram, explained that payment could not be processed because updated GST details had not been received from the petitioner, which were required for uploading agreement details into the Comprehensive Financial Management System (CFMS).

Issues Involved

  1. Whether the respondents' non-payment of admitted contractual dues, pending only the petitioner's submission of updated GST details for a financial system upload, was arbitrary and warranted a court direction for release of payment.

Petitioner's Arguments

  • The respondents had admitted the petitioner's entitlement to the Rs. 7,41,085 due, yet no payment was being made, which was arbitrary and high-handed.
  • The Court's earlier rulings, including in W.P. No. 10038 of 2021 and a Division Bench ruling in Writ Appeal No. 724 of 2021, had already held that such non-payment of dues by government departments is arbitrary and must be cleared promptly.

Respondent's Arguments

  • Payment could not be processed because updated GST details had not been received from the petitioner, which were necessary for uploading agreement details into CFMS; once such details are submitted, bills would be processed for payment.

Court Order / Findings

  • Relying on the Court's consistent line of rulings against unjustified delay in clearing contractor dues, the Court directed the respondents to release Rs. 7,41,085 to the petitioner along with interest at 6% per annum, in terms of the Division Bench ruling in Writ Appeal No. 724 of 2021, within six weeks.
  • The petitioner was given liberty to separately agitate any claim for a higher rate of interest before an appropriate forum.
  • No order as to costs was made.

Important Clarification

GST features in this case only as an administrative prerequisite — the department needed the petitioner's updated GST details to process the payment through its financial system — not as a substantive legal dispute about GST. The Court's order is essentially about timely payment of an admitted contractual dues claim by a government department, a recurring theme in AP High Court rulings on delayed contractor payments.

Sections Involved

  • Comprehensive Financial Management System (CFMS) procedural requirements (administrative, not a statute)
  • Article 226 of the Constitution of India — writ jurisdiction

Decision – In Favour of

Decided in favour of the petitioner — the respondents were directed to release the admitted dues of Rs. 7,41,085 with 6% interest per annum within six weeks.

Case Details

  • Court: High Court of Andhra Pradesh
  • Case No.: WP No. 11565 of 2023
  • Coram: Justice Venkateswarlu Nimmagadda
  • Date of Order: 4 November 2023

Link to Download the Order

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