Andhra Pradesh High Court - Amravati
M/S Sri Venkata Balaji Transport vs The Andhra Pradesh State Civil ... on 7 January, 2021
Bench: M.Ganga Rao
(SHOW CAUSE NOTICE BEFORE ADMISSION) .
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATIL".
(SPECIAL ORIGIANAL JURISIDICTION)
THURSDAY , THE SEVENTH DAY OF JANUARY
TWO THOUSAND AND TWENTY ONE
:PRESENT:
THE HONOURABLE SRI JUSTICE M.GANGA RAO
WRIT PETITION NO: 634 OF 2021 is
Between: "
M/s.Sri Venkata Balaji Transport, D.No.17-97(1), 48 floor, Near Old Check Post,
Renugunta, Chittoor District - 517520. Rep. by its Managing Partner Dr.K.Y.Narasimha
Rao
Petitioner
AND
The Andhra Pradesh State Civil Supplies Corporation Limited, Rep., by its Vice
Chairman and Managing Director D.No.10-152/1, Sri Sai Towers, 4th Floor,
Ashoknagar, Besides Siris Company, Bandar Road, Kanuru, Vijayawada-520007.
Respondents
WHEREAS the Petitioner above named through its Advocate Sri Kiran
Kumar. B, presented this Petition under Article 226 of the Constitution of India praying
that in the circumstances stated in the affidavit filed therewith, the High Court may be
pleased to issue an appropriate order or direction more particularly one in the nature of
Writ of Mandamus declaring the action of the Respondent in unilaterally extending the
Petitioners contract without enhancing transportation charges and made the Petitioner
to transport essential commodities from 01.04.2017 till date i.e., 04.01.2021 for the rates
existing as on 01.04.2016, as illegal, unjust, arbitrary, discriminatory, without jurisdiction
and in violation of the principles of Natural Justice and also in violation of Articles 14,
19, 21 and 300-A of the Constitution of India and consequently direct the Respondent to
enhance and pay transportation charges as per the judgment of this Honble Court
dt.7.10.2013 in W.P.No.9509 of 2013 and Batch.
AND WHEREAS the High Court upon perusing the petition and affidavit
filed herein and upon hearing the arguments of Sri Kiran Kumar. B, Advocate for the
Petitioner and of Sri Hemachandra, Standing Counsel who takes notice for on behalf of
Respondent, directed issue of notice to the Respondent herein to show cause as to
why this WRIT PETITION should not be admitted.
You viz:
The Vice Chairman and Managing Director, Andhra Pradesh State Civil Supplies
Corporation Limited, D.No.10-152/1, Sri Sai Towers, 4th Floor, Ashoknagar, Besides
Siris Company, Bandar Road, Kanuru, Vijayawada-520007
are directed to show cause either appearing in person or through an Advocate, as to
why in the circumstances set out in the petition and affidavit filed therewith (copy
enclosed) this WRIT PETITION should not be admitted on or before 25.02.2021 on
which date the case stands posted for hearing
IA NO: 1 OF 2021
Petition under Section 151 CPC praying that in the circumstances stated
in the affidavit filed in support of the petition, the High Court may be pleased to direct
the Respondent to consider the case of the Petitioner for payment of enhanced rates for
the period from 01.04.2017 to till date in terms of the judgment of this Hon'ble Court in
dt.7.10.2013 in W.P.No.9509 of 2013 & Batch, pending disposal of WP No. 634 of
2021, on the file of the High Court.
The Court made the following: ORDER
Notice before admission.
Sri Hemachandra, learned standing counsel takes notice for the respondent and
waives further notice and seeks time to get instructions.
The case of the petitioner is that the petitioner has been working as Stage-l
transport contractor of respondent-Corporation. The respondent issued tender notice
dated 21.03.2016 for transportation of Food grains, Pulses or any other essential
commodities for the years 2016-17 under Stage-l i.e., from Warehouses to MLS points
and the period of contract was from 1.5.2016 to 31.3.2017. The respondent entrusted
the said contract to the petitioner as he is a successful bidder. The respondent-
Corporation executed agreement dated 18.04.2016 and issued Work Order dated
26.04.2016 and he paid Rs.30 lakhs towards interest free security deposit. The
respondent issued another tender notice dated 20.03.2017 for the period from
01.05.2017 to 31.03.2019 and again he became L1. However, W.P.No. 13088 of 2017
was filed challenging the tender notice dated 20.03.2017 and this Court granted interim
order directing to maintain status quo with regard to finalization of tenders for Chittoor
District. In order to avoid disruption of public distribution system and other welfare
schemes and to ensure uninterrupted supply of stocks under PDS in public interest,
respondent by order dated 01.05.2017 extended the existing contract until further orders
as per Condition No.3(i) of the agreement dated 18.04.2016 and the same was
extended till 31.07.2020 or till finalization of W.P.No.13088 of 2017. As on date, the
respondent is holding the petitioner's money of Rs.60 lakhs. In the month of April,
2016, the diesel rate was Rs.53.65 Ps. per liter, whereas it is Rs.80.55 Ps. as on
04.01.2021 and there is an increase of Rs.26.40 Ps. per liter and the Lorry Owners
Association in the State has enhanced the transportation rates to a tune of 43% than
the rates existing as on 01.04.2016. The petitioner is forced to transport essential
commodities for huge financial loss under the threat of blacklisting of petitioner's
contract and forfeiture of security deposit and pending bills. Though the petitioner made
several requests to consider its case for payment of enhanced rates, the respondent
failed to consider the same till date. Assailing the said arbitrary action of the
respondent, the present writ petition is filed.
Learned counsel for the petitioner states that if the petitioner makes any demand
for enhanced rates and does not cooperate with the respondent, the respondent-
Corporation will blacklist the petitioner for the coming 5 years and it will forfeit the
security deposit and EMD paid by the petitioner and invoke petitioner's Bank guarantee
and forfeit the transportation bills payable to the petitioner. The action of the
respondent in unilaterally extending the petitioner's contract without enhancing the
_transportation charges, is illegal and arbitrary.
Having regard to the facts and circumstances of the case and considering the
submissions of the learned counsel, and on perusal of the record, this Court prima facie
satisfied that the petitioner has shown sufficient cause for grant of interim direction.
Accordingly, there shall be interim direction as prayed for.
Post on 25.02.2021.
Sd/- B. NARASING RAO
ASSISTANT REGISTRAR
ITTRUE COPY// &. ) J
- For ASSISTANT REGISTRAR
To
4. The Vice Chairman and Managing Director, Andhra Pradesh State Civil Supplies
Corporation Limited, D.No.10-152/1, Sri Sai Towers, 4" Floor, Ashoknagar,
Besides Siris Company, Bandar Road, Kanuru, Vijayawada-520007
(by RPAD- along with a copy of petition and affidavit )
2. One CC to Sri Kiran Kumar. B, Advocate [OPUC]
3. One CC to Sri Hemachandra, Standing Counsel (OPUC)
4. One spare copy
TVR
HIGH COURT
MGRJ
_ DATED:07/01/2021
POST ON 25.02.2021
NOTICE BEFORE ADMISSION
WP.No.634 of 2021
INTERIM DIRECTION
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A
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