Facts of the Case

The petitioner, Ketha Venkata Ramana Reddy, a works contractor, executed six irrigation-related works for the Government of Andhra Pradesh under separate agreements between 2021 and 2022, for a total contract value running into several lakhs of rupees. He filed Writ Petition No. 10188 of 2023 before the High Court of Andhra Pradesh at Amaravati, contending that despite completing the works and having them duly measured and recorded, the respondent departments (Irrigation and Finance & Planning) had not released the final bills, totalling Rs. 69,26,623/-, along with GST at 12% and interest. It is important to be upfront: this is a contract-payment dispute under general administrative and contract law, not a case that decides any question of GST law. GST is mentioned only because it formed part of the amount the petitioner said he was owed under his agreements — the Court was not asked to, and did not, interpret any GST provision.

Issues Involved

  1. Whether the State's failure to release admitted and finalised bills for completed works amounted to illegal and arbitrary action.
  2. Whether the petitioner was entitled to a direction for payment of the pending bill amount, inclusive of GST component, with interest.

Petitioner's Arguments

  • The works under all six agreements were executed in full and the measurements were duly recorded in the Measurement Books.
  • Despite completion, the bills lawfully due to the petitioner, including the GST component, were withheld without justification.
  • The non-payment caused serious prejudice and irreparable loss, warranting the Court's intervention.

Respondent's Arguments

  • The Assistant Government Pleader for Irrigation produced written instructions stating that the BRO (Bill Register Order) proposals for the works in question had been submitted to the Head Office for approval of payment.
  • It was submitted that payment would be cleared as soon as the Government released the requisite budget (BRO).

Court Order / Findings

  • The Court found the position regarding execution of works and non-payment of bills to be undisputed, and held that withholding payment in these circumstances was unjust.
  • The Writ Petition was disposed of at the admission stage with a direction to the respondents to pay the amounts due, after statutory deductions, within three months.
  • The petitioner was given liberty to separately claim interest before an appropriate forum if so advised.
  • No order was passed on any question of GST law; the order is purely a payment-release direction based on admitted facts.

Important Clarification

This order is a reminder that many High Court writs described loosely as involving 'GST' are, in substance, ordinary contractual payment disputes where GST is simply a component of the amount billed. Contractors seeking timely release of bills — including the GST charged on them — should keep documentation (measurement books, correspondence, BRO status) in order, since courts tend to grant relief readily where the factual position on completion of work is undisputed.

Sections Involved

  • Article 226 of the Constitution of India (writ jurisdiction)
  • General principles of contract and administrative law governing payment of dues to government contractors

Decision – In Favour of

The petition was allowed to the extent of directing payment of the admitted dues within three months; the order does not decide, and should not be cited for, any point of GST law.

Case Details

Court: High Court of Andhra Pradesh at Amaravati
Case No.: Writ Petition No. 10188 of 2023
Coram: Hon'ble Sri Justice Ninala Jayasurya
Date of Order: 26 July 2023

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