#contractual works

The Andhra Pradesh High Court has ruled that public sector undertakings cannot withhold payments for completed public works merely due to budgetary constraints, even after bills are formally finalized. This reinforces the principle that state instrumentalities are bound by contractual obligations and must pay admitted dues promptly, preserving the contractor’s right to claim interest in civil court - a critical precedent for infrastructure contractors across India.

Andhra Pradesh High Court mandates completion of administrative processes within 10 weeks and payment of dues within 4 weeks thereafter for certified public works, holding bureaucratic delay cannot justify non-payment. Contractors are entitled to timely remuneration as a matter of contractual right, enforceable under writ jurisdiction.