Ch.Dayakar vs Andhra Pradesh State Civil ...
2023 Latest Caselaw 621 AP

           HIGH COURT OF ANDHRA PRADESH

                MAIN CASE No:W.P.No.2470 OF 2023

                           PROCEEDING SHEET

SL.          DATE                            ORDER                             OFFICE
NO.                                                                             NOTE
                      RNT,J
2.       06.02.2023

                      1.      Learned counsel for the petitioner submits
                      that the writ petition is maintainable and the
                      arbitration clause is not a bar to the maintainability
                      of the writ petition, as the order has been passed in
                      violation of the principles of natural justice without
                      giving any notice.
                      2.      He further submits that by the order, the
                      petitioner has also been black listed and in view of
                      the judgment in the case of M/s. Erusian
                      Equipment & Chemicals Ltd vs. State of West
                      Bengal and Another1, before black listing the
                      person concerned should be given the opportunity
                      and for such black listing the petitioner has no
                      remedy under the agreement.
                      3.      Sri   P.Hema   Chandra,   learned   Standing
                      Counsel for Andhra Pradesh State Civil Supplies
                      Corporation for the respondent Nos.1 to 3 submits

that the petitioner has the alternative remedy for Resolution of the disputes under Clause 17 of the agreement, firstly to resolve the dispute by

1975 1 SCC 70 SL. DATE ORDER OFFICE NO. NOTE reference to Joint Collector & EOED, APSCSC LTD., and in case, it is not so resolved, to refer it to the arbitrator.

4. He further submits that under Clause 3 (iv), if the Transport Contractor or his representative (s) is involved in a case under Essential Commodities Act or any other Acts or violation of any clauses under the agreement, Corporation shall have absolute right to terminate the contract with immediate effect, in case of any diversion or misappropriation of stocks while in his custody, without assigning any reasons whatsoever, and in such a case giving of notice is not required. Consequently, there is no violation of the principles of natural justice in termination of contract.

5. Keeping the question of maintainability open, to be argued on the next date, the learned Standing Counsel, on his request, is granted a week's time to file the counter affidavit.

6. List on 13.02.2023.

________ RNT,J Scs