CDJ Law Journals

1. This writ petition is filed with the following prayer:

“… to issue an order or direction or writ, more particularly one in the nature of a Writ of Mandamus declaring the action of the respondents in not releasing bills for 1. An amount of Rs.20,99,276/- in respect of the Agreement No.--/2022-23 dated 31.01.2023, 2. An amount of Rs.2,61,925/- in respect of the Agreement No.38/2023-24 dated 17.06.2023, as arbitrary and illegal and violative of Articles 14, 19(1)g and 21 of the Constitution of India and consequently direct the respondents herein, to release the bills for 1. An amount of Rs.20,99,276/- in respect of the Agreement No.--/ 2022-23 dated 31.01.2023, 2. An amount of Rs.2,61,925/- in respect of the Agreement No.38/2023- 24 dated 17.06.2023, with 18% interest and pass such other order or orders as this Hon’ble Court may deem fit and circumstances of the case.”

2. Heard Mr. A. Yadava Reddy, learned counsel for petitioner, Mr. Ram Shanker Sharma, learned Assistant Government Pleader for Finance and Planning and learned Assistant Government Pleader for Panchayat Raj appearing for official respondents. Learned counsels agreed for disposal of the matter at the admission stage, matter is being heard and disposed of.

3. Petitioner is a registered Civil Contractor executing Government Contracts for several years. Government envisaged a Flagship Programme to provide drinking water supply to all the citizens of the State of Telangana in a time bound manner by drawing water from major rivers and for transmission of the said water from reservoirs to the citizens. Administrative sanctions vide G.O.Rt.No.392, dated 23.06.2015, G.O.Rt.No.24, dated 10.01.2017, G.O.Rt.No.688, dated 17.09.2018, and G.O.Rt.No.456, dated 02.09.2023, were issued by Government of Telangana for providing safe drinking water on sustainable basis.

4. Pursuant to the said G.Os., Chief Engineer accorded technical sanction vide T.S.No.20/16-17, dated 08.02.2017, (Chief Engineer-II RWS&S, Hyderabad) and technical approvals were given by Chief Engineers, TDWSP, Hyderabad. Petitioner participated in tender process and being the lowest bidder, was awarded works and thereafter, petitioner entered into agreements and also supplement agreements with the Superintendent Engineer, Mission Bhagiratha (MB) Circle, Sangareddy, and the Executive Engineer, M.B. Intra Division (Mission Bhagiratha), Sangareddy (respondent Nos.7 and 8). The works in respect of villages, date and number of agreements, original agreement value and the amounts due are as follows:

Sl. No.	Name of the Village/Work	Agreement Number & Date	Agreement (value in Rupees)	Amount due (in rupees)
1.	Intra village Additional Pipeline work for Pulkal – Baswapur	No. /22-23 Dt. 31.03.2023 & Supplement Agreement No. dated 10.10.2023	14,69,000-00 9,95,923-00	20,99,276-00
2.	Intra village Pipeline work (Additional) for Sarafpally	No.38/23-24 Dt.17.06.2023 & Supplement Agreement No. dated 08.10.2023	3,70,000-00	2,61,925-00

5. Learned counsel for petitioner submitted that works were executed as per the terms and conditions of the agreement within the stipulated period and the same were recorded by the Deputy Executive Engineer, MB Intra Sub-Division, Jogipet, check-measured in the MB (Measurement Books). That respondent No.8 prepared the bills, after deducting statutory deductions, and paid in part. It is further submitted that amounts have not been paid.

6. It is submitted that in spite of completion of works within time as stipulated in the agreement, authorities have not discharged their liability in paying the bill amounts. That two years have elapsed, yet the payment is not forthcoming. It is also submitted that long delay in releasing the bills would financially burden the petitioner, adversely affect the business and that irreparable financial loss and hardship would be caused. It is also pointed out that no objections were raised with regard to the quality of works and that withholding the payments would constitute an egregious breach of the terms and conditions of the agreements.

7. Learned counsel for petitioner placed reliance on the Division Bench judgment dated 12.12.2023 in W.A.No.1081 of 2023 to buttress the contention that in similar circumstances, the Division Bench of this Court granted interest @ 6% per annum. That, writ petitioner is entitled to claim interest @ 6% per annum. Learned counsel for petitioner sought indulgence of this Court for releasing the payments due with interest. Learned counsel also placed reliance on the order in W.P.No.24148 of 2025, dated 15.09.2025.

8. On the other hand, learned Assistant Government Pleader for Finance and Planning appearing on behalf of respondent Nos.1 to 3 submitted that due to administrative delays, payments are due. Learned counsel submitted that authorities would release the amounts, due to petitioner/ contractor, after following due procedure and sought time for payment of amounts.

9. Heard learned counsels, perused the record and considered the submissions.

10. Petitioner is a Civil Contractor and was awarded various works under the Mission Bhagiratha Programme, a scheme for providing safe drinking water in rural areas. Petitioner executed works within stipulated time, works were check-measured, quality control reports were issued, bills were prepared, pass orders were issued, but payments were not forthcoming.

11. Proposals for providing drinking water to rural habitations in the State were mooted, Engineer-in-Chief, Rural Water Supply & Sanitation (RWS & S) submitted proposals for intra village system works, as per the newly formed districts requesting administrative sanctions. Government of Telangana accorded administrative sanctions vide various G.Os., such as G.O.Rt.Nos.392, 24, 688 (PR & RD (RWS.IV), Department, and G.O.Rt.No.456 (PR & RD M.B.IV), dated 23.06.2015, 10.01.2017, 17.09.2018 and 02.09.2023, for providing safe drinking water. G.O.Rt.No.24, dated 10.01.2017 and G.O.Rt.No.688, dated 17.09.2018, were issued with the concurrence of the Finance Department on 27.12.2016 and 06.09.2018 (as per the G.O.).

12. Pursuant to administrative sanctions, respondent authorities accorded technical sanctions and approvals, tenders were floated, petitioner participated in tender process. Petitioner was awarded various works, agreements was entered by respondent authorities with petitioner. It is not in dispute that petitioner executed the works as per the terms and conditions of the agreements within the stipulated time. It is also not in dispute that works were check-measured by respondent authorities, quality control reports were issued, bills were prepared and pass orders were issued.

13. Grievance of petitioner/contractor is that payments are still due, for the works awarded and executed within stipulated time with no complaints.

14. It is observed from the material on record that though works are completed in time, payments are not made so far. Petitioner seeks interest @ 18% per annum on the amounts due.

15. It is trite law that when works are completed within time, check-measured by the authorities, quality control reports issued with no complaints and bills prepared, amounts have to be released within a reasonable time. Perused the G.Os., and noted the contents.

16. Non-payment of dues would adversely impact the business prospects of petitioner/contractor. Financial burden would be thrust upon the petitioner and irreparable loss and hardship would be caused, as contended.

17. State Government, having benefited from the works executed by Contractor, cannot now turn around and say that payments are due and shall be made. In the facts and circumstances, noted above, payments have to be released. State cannot sit over the amounts, to be paid to the Contractor, who completed works in time. It is the duty of State Government to release the payments at an early date. If amounts are not paid within a reasonable time, petitioner is entitled for interest at the normal rate (which is in existence as per the Banking Guidelines). Even if a period of six (06) months is taken as a reasonable time, payments are due to the petitioner for long time. Petitioner is entitled for interest, he is to be paid interest @ 6% per annum from the date, when payments/amounts have become due.

18. This Court is bound by the judgment of Division Bench in W.A.No.1081 of 2023. The Division Bench in a similar subject matter, awarded interest @ 6% per annum. Judgment of Division Bench (W.A.No.1081 of 2023) is squarely applicable to the facts of this case.

19. Having considered the entire factual matrix of the case, this Court is of the opinion that respondent authorities be directed to release the amounts due to petitioner/ contractor with interest @ 6% per annum from the date payments/amounts are due. Respondent authorities shall release the payments/amounts due to petitioner/ contractor with interest @ 6% per annum, within a period of sixteen (16) weeks from the date of receipt of a copy of this order.

20. For reasons aforesaid, writ petition stands disposed of. There shall be no order as to costs.

Miscellaneous applications, if any, pending shall stand closed.

This Product is Licensed to ,

Change Font Style & Size Show / Hide