Single judge’s verdict on interest for delay set aside

VIJAYAWADA: The Andhra Pradesh High Court on Friday set aside the single judge’s verdict on payment of bills to contractors for government works with 12% interest for the delay in clearance.

Hearing an appeal of the Roads and Buildings department on the verdict of the single judge, a division bench, comprising Chief Justice Prashant Kumar Mishra and Justice DVSS Somayajulu, said as there is no mention of interest for the delay in works in the contractual agreement, there is no scope for payment of interest. Further, the bench observed that the single judge’s verdict directing the R&B department to pay 12% interest in the absence any such clause in the contractual agreement was against the rules.

Y Babu Rao bagged the contract to strengthen the compound wall and erect a fencing for SM and AR Farm belonging to the agriculture department at Samalkot.

Following delay in payment of bills after executing the works, he approached the High Court. Hearing the petition, Justice B Devanand delivered the verdict directing the R&B department to pay `12% interest on the bills worth `23.21 lakh for the delay in clearance.