STATE OF ANDHRA PRADESH Vs. VYSHNO CONSTRUCTIONS

JUDGEMENT

(1.) The short question that arises for determination in these writ appeals is whether, despite there being a clause in the agreement disentitling the contractor to claim interest upon any guarantee fund or payments in arrears, nor upon any balance which may, on the final settlement of his accounts, found to be due to him and despite there being an arbitration clause or remedy of preferring civil suit, the writ court in exercise of powers under Article 226 of the Constitution of India can award interest on the amounts due to him pursuant to the work carried out by him in terms of the agreement.

(2.) All the writ appeals involve common questions of law and fact. Therefore, they are heard analogously and are being disposed of by this common judgment. For the purpose of disposal, W.A.No.484 of 2022 is taken as lead case.

(3.) Undisputedly, writ petitioners were awarded different contracts pertaining to construction of compound wall, barbed wire fencing etc., by the authorities/officers in the Department of Agriculture, Government of Andhra Pradesh. It is also not in dispute that consequent to the tender process and award of contract, similar agreements as have been filed with the material papers in the writ appeals, were executed between the parties and, further, upon execution of work, some amounts were paid to the contractors, but not the entire amounts as claimed by the contractors in terms of the contract. The impugned orders refer to the contention of the writ petitioners that estimated works have been completed but final payment has not been made despite representations submitted by them.