THE HON'BLE SRI JUSTICE A.GOPAL REDDY and THE HON'BLE SRI JUSTICE P. DURGA PRASAD WRIT APPEAL No.1284 of 2008 JUDGMENT: (Per Hon’ble Sri Justice A.Gopal Reddy) When the vacate stay petition came up for consideration, with the consent of the learned counsel appearing for both the parties, the main writ appeal itself is taken up for final disposal. This intra-Court appeal under Clause 15 of the Letters Patent is directed against the order dated 28.03.2006 passed by the learned Single Judge of this Court in W.P.No.3321 of 2006, whereby the learned Single Judge disposed of the writ petition filed by the first respondent herein directing the Municipal Council- writ appellant to pay the amounts due and payable to the first respondent herein in respect of the contract for construction of two storied commercial complex in the premises of Old Civil Hospital situated at Suryapet Town under the Integrated Development of Small and Medium Town (IDSMT) Scheme by the end of May 2006, and observing that on failure to pay the admitted amounts by the end of May 2006, the same shall carry interest @ 9% per annum. There is no dispute with regard to entrustment of the contract work to the writ petitioner he being the lowest bidder, for a total estimated cost of Rs.287.31 lakhs; payment of the amount to the writ petitioner on various dates for the work done by him, and the amount of Rs.60,78,942/- to be paid to the writ petitioner for the balance work done by him. The above writ petition came to be filed for payment of the amount of Rs.79,10,366/- in view of the final bill prepared by the department. The learned Single Judge observed that the Municipal Council resolved to meet the additional expenditure from out of its general funds but not out of the grants to be sanctioned by the Government and therefore, there is no justification on its part in not paying the admitted amounts to the writ petitioner and that irrespective of any release of grants by the Government, the first respondent is liable to pay the said amount to the writ petitioner. Further, it is to be noted that before the learned single Judge, the learned counsel appeared for the respondents therein, on instructions, submitted that the respondents therein undertook to pay the balance amount to the writ petitioner from out of the general funds, without any reference to the grants that may be sanctioned by the Government, by the end of June 2006. Therefore, the learned Single Judge disposed of the writ petition directing the respondents therein to pay the amounts due and payable to the writ petitioner by the end of May, 2006, failing which, the amount will carry interest @9% per annum. Heard the learned counsel and perused the material available on record. Admittedly, the appellant itself consented to pay the admitted amount to the writ petitioner by the end of June, 2006. But the said amount has not been paid within the stipulated time pursuant to the directions issued by the learned single Judge. Hence, Contempt Case No.619 of 2006 was filed. In the said Contempt Case, the Commissioner of the appellant Municipality undertook to pay the amounts due from out of the general funds of the Corporation. Recording the said undertaking, C.C.No.619 of 2006 was disposed of on 13.02.2007 permitting the appellant to pay Rs.10,00,000/- per month along with interest @ 9% per annum. The appellant paid Rs.20.00 lakhs in July, 2007, but defaulted in payment of balance amount. In view of that default, the writ petitioner filed another Contempt Case No.434 of 2008. Pending the said Contempt Case, the appellant paid a sum of Rs.20.00 lakhs on 05.02.2008 and Rs.39,10,356/- on 04.08.2008 leaving a balance of Rs.15,17,777/- towards principal and interest as on 13.10.2008. Therefore, the appellant cannot deny the payment of interest due, for which the writ petitioner is legitimately entitled to. In view of the same, the writ appeal is liable to be dismissed. Accordingly, the writ appeal is dismissed confirming the order dated 28.03.2006 passed by the learned Single Judge. However, the appellant is granted time for payment of balance amount and interest due to the writ petitioner till 30.03.2011. No costs. A.GOPAL REDDY, J P. DURGA PRASAD, J Date: 16.11.2010 va