Facts of the Case

This is Writ Petition No. 10654 of 2023 before the High Court of Andhra Pradesh at Amaravati, filed by M/s. Adhuna Interior Designers against the State of Andhra Pradesh and the Andhra Pradesh Tourism Authority, seeking payment of Rs.32,62,853/- plus GST for restoration of work stations, renovation of the CEO's chamber, establishment of a conference hall, construction of new washrooms and dismantling work at the Tourism Department's premises in Vijayawada, along with 24% interest. The petitioner had raised tax invoices for the amount claimed but the payment remained pending despite completion of the work.

Issues Involved

  1. Whether the respondents were liable to pay the balance billed amount, inclusive of GST, for the completed renovation works.

Petitioner's Arguments

  • Having completed the works pertaining to office renovation as per the sanctioned order, the petitioner raised a bill for Rs.32,62,853/- plus GST, which remained unpaid, warranting a mandamus for payment with 24% interest.

Respondent's Arguments

  • The Government Pleader for Tourism submitted that upon verification of the file and uploaded documents in the CFMS, the pending bill for payment was found to be Rs.24,41,573/- plus GST only, not the full amount claimed by the petitioner.

Court Order / Findings

  • Based on the respondents' own verification confirming a pending payable amount, the Court directed the second respondent to pay Rs.24,41,573/- plus GST to the petitioner, as expeditiously as possible and preferably within eight weeks.
  • The respondents were given liberty to make necessary deductions as per law, and the petitioner was left free to pursue any remaining difference in amount through appropriate legal steps.
  • The writ petition was disposed of accordingly, with no order as to costs.

Important Clarification

The Court's direction was based on the respondents' own admission of the amount payable, verified through their internal financial management system — it did not independently adjudicate a disputed GST question. The order confirms only that GST forms part of the amount payable on a completed government works contract once the underlying liability itself is admitted by the department.

Sections Involved

  • Article 226, Constitution of India — writ of mandamus for payment of admitted dues

Decision – In Favour of

Substantially in favour of the petitioner — the respondents were directed to pay the admitted balance amount plus GST within eight weeks, though only to the extent verified by the department, with any further disputed amount left open for the petitioner to pursue separately.

Case Details

Court: High Court of Andhra Pradesh at Amaravati
Case No.: Writ Petition No. 10654 of 2023
Coram: Justice B. Krishna Mohan
Date: 9 August 2023

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