Facts of the Case

Two contractors, Kothapalli Venkata Satya Suryanarayana Raju and Velagala Raja Sekara Reddy, sought a mandamus directing the State of Andhra Pradesh's Irrigation Department to release final bills totalling Rs. 25,19,904 for nine completed works under various agreements, along with 12% GST and interest, alleging non-payment was illegal, arbitrary and violated Articles 14, 16 and 21 of the Constitution.

Issues Involved

  1. Whether the respondents were liable to release the petitioners' final contract bills, inclusive of 12% GST, along with interest.

Petitioner's Arguments

  • The failure to release admitted final bill amounts (with GST) for completed works was illegal, arbitrary and in violation of constitutional guarantees and natural justice.

Respondent's Arguments

  • The Government Pleaders for Finance and Planning confirmed that the interim order dated 08.12.2021 had already been complied with, and the total due amount claimed by the petitioner had been paid.

Court Order / Findings

  • The Court recorded the submission that payment had already been made pursuant to the earlier interim order.
  • It held that no cause survived for further adjudication and closed the writ petition, with no costs.

Important Clarification

This case does not decide any question of GST rate, classification, or applicability — the 12% GST mentioned was simply part of the invoiced contract value that the State ultimately paid. It illustrates how GST amounts get bundled into government works-contract billing disputes without the Court ever examining GST law itself.

Sections Involved

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

Decision – In Favour of

Effectively resolved in favour of the petitioners since payment (including the GST component) had already been made; the writ petition was closed as having become infructuous, without costs.

Case Details

  • Court: High Court of Andhra Pradesh at Amaravati
  • Case No.: Writ Petition No. 28891 of 2021
  • Coram: Hon'ble Sri Justice Venkateswarlu Nimmagadda
  • Date of Order: 4 August 2023

Link to Download the Order

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