Facts of the Case

Despite the word 'GST' appearing prominently in this case, it has nothing to do with Goods and Services Tax — 'GST' here refers to a place name (Kambadur Village and Mandal, Ananthapur District) associated with the contract works, not the tax. The petitioner, B Chandra Mohan Reddy, a contractor, sought release of Rs. 2,66,686 for two completed contract works: repairs and painting of an old building (Rs. 1,03,940) and providing barbed wire fencing (Rs. 1,62,746) at Kambadur Village. He alleged the State's failure to release these admitted amounts was illegal and arbitrary.

Issues Involved

  1. Whether the State authorities were obligated to release the admitted contract bill amount to the petitioner.

Petitioner's Arguments

  • The Respondents had admitted the bill amount but failed to release payment, in violation of Articles 14, 19 and 21 of the Constitution and principles of natural justice.

Respondent's Arguments

  • The various Government Pleaders collectively submitted that the authorities had admitted the bill amount and would pay it in due course, and that a similar order in W.P. No. 17411 of 2022 had granted six weeks for payment, requesting the same treatment here.

Court Order / Findings

  • The petitioner's counsel raised no objection to the respondents' proposal.
  • The Court disposed of the writ petition on the same terms as W.P. No. 17411 of 2022, directing release of the admitted amount within six weeks.
  • The petitioner was given liberty to approach the appropriate forum for any claim of interest.

Important Clarification

This case is a straightforward contractor-payment dispute — 'GST' in the case title and prayer refers only to the location of the works (a village/scheme site), not to Goods and Services Tax. It should not be mistaken for GST case law.

Sections Involved

  • Article 226, Constitution of India, 1950 — writ jurisdiction.
  • Section 151, Code of Civil Procedure, 1908 — interim application for release of funds.

Decision – In Favour of

Decided in favour of the petitioner-contractor; the respondents were directed to release the admitted bill amount within six weeks, with liberty reserved on the question of interest.

Case Details

  • Court: High Court of Andhra Pradesh at Amaravati
  • Case No.: Writ Petition No. 4015 of 2023
  • Coram: Hon'ble Sri Justice Ravi Cheemalapati
  • Date of Order: 2 May 2023

Link to Download the Order

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