Facts of the Case

The petitioner, Chowday Suresh, a contractor, executed construction works — including an approach road, water supply, electrification, a floating jetty and related amenities — for the Andhra Pradesh Tourism Development Corporation (APTDC) at Pedamallam village under Agreement Bond No.118/SPE/APTDC/Agmt/2016-17. He claimed the respondents owed him Rs. 49,83,368/-, including GST, on finalised bills, and filed Writ Petition No. 21874 of 2023 seeking release of that amount with 24% interest. This case is a contract-payment dispute; GST is referenced only because the final bill included it, and the order does not interpret or apply any GST provision.

Issues Involved

  1. Whether the respondent authorities' withholding of the finalised bill amount was illegal and arbitrary.
  2. What amount, if any, was payable to the petitioner given a dispute over the exact figure due.

Petitioner's Arguments

  • The bill for the completed works, amounting to Rs. 49,83,368/-, had been finalised but was not released.
  • The withholding was illegal, arbitrary, and warranted a mandamus directing payment with 24% interest.

Respondent's Arguments

  • Government sanction of Rs. 37.53 crores had been issued, and a bill implementing GST for a gross amount of Rs. 43,96,652/- had since been prepared and submitted for further processing (scrutiny at APTDC head office and upload on the CFMS payment portal).
  • Time was sought to complete this internal processing before actual payment.

Court Order / Findings

  • On the authorities' own submission, the Court directed release of the admitted/legally entitled amount of Rs. 43,96,652/- within eight weeks.
  • Since the petitioner claimed a higher figure (Rs. 49,83,368/-) than what the department admitted, the Court granted the petitioner liberty to take steps in accordance with law to recover the balance amount, and liberty to separately agitate any claim for interest before an appropriate forum.
  • No order as to costs; the petition was disposed of without any adjudication of the disputed balance.

Important Clarification

The order illustrates a common pattern in these government-payment writs: courts will direct release of whatever amount the government department itself admits is due, while leaving any disputed excess (here, roughly Rs. 5.87 lakh) to be pursued separately. It is not a ruling on any GST question — GST is simply embedded in the contract price.

Sections Involved

  • Constitution of India, 1950 — Article 226
  • Andhra Pradesh Tourism Development Corporation works-contract framework

Decision – In Favour of

Disposed of partly in the petitioner's favour: payment of the admitted amount directed, with the disputed balance and interest claim left open for separate proceedings — not a decision on GST merits.

Case Details

Court: High Court of Andhra Pradesh at Amaravati
Case No.: Writ Petition No. 21874 of 2023
Coram: Hon'ble Sri Justice Ravi Cheemalapati
Date of Order: 11 September 2023

Link to Download the Order

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