Facts of the Case

The petitioner had executed irrigation works for the State of Andhra Pradesh under Agreement No. 01/KW/2022-23 dated 08.06.2022, completing the work in December 2022 with the value duly recorded in the Measurement Book. The final bill of Rs. 6,57,806/- (later confirmed by the department itself to be Rs. 7,29,097/-), inclusive of 12% GST and interest, remained unpaid.

The petitioner filed a writ petition seeking a declaration that the respondents' failure to pay the bill was illegal and arbitrary, and a consequential direction to release the amount along with 12% GST and interest.

Issues Involved

  1. Whether the respondents' failure to release payment for completed irrigation works, including the GST component, was justified.
  2. What relief should be granted given the respondents' own admission that non-payment was due to non-availability of government funds.

Petitioner's Arguments

  • The work under Agreement No. 01/KW/2022-23 had been fully executed and measured, but the final bill amount, along with 12% GST and interest, had not been released even after completion.
  • The respondents' inaction in releasing payment for completed work was illegal, arbitrary, and violative of Articles 14, 19(1)(g) and 21 of the Constitution.

Respondent's Arguments

  • The Government Pleader for Irrigation & CAD placed on record written instructions confirming the value of work done (Rs. 7,29,097/-) and that the bill remained unpaid solely due to non-availability of funds, with an assurance that payment would follow once funds were released by the Government.

Court Order / Findings

  • Given the undisputed position regarding execution of work and non-payment, the Court held the respondents' action in not releasing payment was unjust and not tenable, while extending some further time to the respondents to arrange the funds.
  • The Court directed the respondents to make payment of the amount due, after effecting statutory deductions, as expeditiously as possible and in any event within eight weeks from receipt of the order.
  • The petitioner was left free to raise any claim regarding the interest component before the appropriate forum, if so advised. There was no order as to costs.

Important Clarification

As with similar works-contract payment disputes, this order does not interpret any GST provision — it directs payment of a bill amount that the government department itself did not dispute, of which 12% GST was simply a component. The interest claim was expressly left open for a separate forum, underscoring that the Court's direction was limited to the principal/GST bill amount.

Sections Involved

  • Articles 14, 19(1)(g) and 21 of the Constitution of India, 1950
  • Article 226 of the Constitution of India, 1950 (writ jurisdiction)

Decision – In Favour of

Decided in favour of the petitioner — the respondents were directed to release the pending bill amount, inclusive of GST, within eight weeks, without any GST-law question being adjudicated.

Case Details

Court: High Court of Andhra Pradesh at Amaravati
Case No.: Writ Petition No. 9409 of 2023
Coram: Hon'ble Sri Justice Ninala Jayasurya
Date of Order: 26.07.2023

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