IVRCL- Navayuga-Sew (JV) Vs State of Telangana (Telangana High Court)
Telangana High Court directed payment of interest @ 6% for non-payment of principal amount as directed by the Court for price adjustment towards Labour and other material. Notably, interest is payable from date of expiry of time granted by Court till the date of payment.
Facts- This writ petition is filed aggrieved by the action of the respondents in not releasing the admitted and approved amount of Rs.80,26,24,011/- (Rupees eighty crores twenty six lakhs twenty four thousand and eleven only) to the petitioner (Joint Venture) for price adjustment towards labour and other materials as per the conditions of the Agreement No.LS 1/2005-2006 dated 03.04.2005 and orders of this Court in W.P. No.40000 of 2012 dated 23.03.2022 as illegal, arbitrary, unconstitutional and for a consequential direction to the respondents to release the amount along with interest.
Conclusion- Held that as the total admitted principal amount was not paid within the time fixed by this Court by the order dated 22.12.2023, the respondents are liable to pay interest to the petitioner for such delayed period, and therefore, the respondents are directed to pay interest to the petitioner at the rate of 6% per annum for the admitted principal amount from 06.01.2024 (the date of expiry of the time granted by this Court) till the date of payment to the petitioner.
