M/S.Sp Pharma Lines, vs The State Of Andhra Pradesh
2024 Latest Caselaw 9390 AP

Citation : 2024 Latest Caselaw 9390 AP
Judgement Date : 16 October, 2024

Andhra Pradesh High Court - Amravati

M/S.Sp Pharma Lines, vs The State Of Andhra Pradesh on 16 October, 2024

APHC010406902024
                        IN THE HIGH COURT OF ANDHRA PRADESH
                                      AT AMARAVATI             [3329]
                               (Special Original Jurisdiction)


             WEDNESDAY ,THE SIXTEENTH DAY OF OCTOBER
                 TWO THOUSAND AND TWENTY FOUR

                                       PRESENT

     THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

                        WRIT PETITION NO: 20830/2024

Between:

M/s.sp Pharma Lines,                                              ...PETITIONER

                                        AND

The State Of Andhra Pradesh and Others                      ...RESPONDENT(S)

Counsel for the Petitioner:

     1. D S SIVADARSHAN

Counsel for the Respondent(S):

     1. GP FOR LABOUR

     2. V CH NAIDU

The Court made the following:

ORDER:

1. The present Writ Petition is filed under Article 226 of the Constitution of

India, seeking the following relief:

"... to issue any order, direction, or writ more particularly one in the nature of Writ of Mandamus and A.] declare the impugned memo dated 24.02.2020 issued by Respondent No.2 as illegal, arbitrary, unconstitutional, contrary to the judgment dated 18.07.2023 passed by this High Court in W.P.No.39324 of 2022 and consequently set aside the same;

B.] declare the impugned proceedings Rc.No.1580031/ CPS/2021, dated 04.12.2021 issued by the Respondent No.2 as illegal, arbitrary, unconstitutional, contrary to the judgment dated 18.07.2023 passed by this Hon'ble High Court in W.P.39324 of 2022 and consequently set aside the same.

C] direct the respondents to release the payment of Rs.1,01,42,446/- (Rupees One Crore One Lakh Forty Two Thousand Four Hundred and Forty Two Thousand Four Hundred and Forty Six only) along with 24% interest against the pending invoices and D] pass such other order or orders..."

2. Heard learned counsel for the petitioner and learned Counsel for the

Respondents.

3. When the matter is taken up for hearing, learned counsel for the

petitioner submits that the issue involved in this writ petition is squarely

covered by the order dated 18.07.2023 passed by this Court in Writ Petition

No.39324 of 2022 and requested to pass a similar order in this Writ Petition

also.

4. On the other hand, the learned Government Pleader for Labour

submitted the written instructions issued by Respondent No.2 dated

16.10.2024, wherein it is stated that as per instructions in the Rate Contract

under Payments to the RC firms for the Drugs supplied, the payments should

be paid only to the firms during scrutiny of payments, towards procurement of

Drugs and Medicines, it was noticed that payments has been made to

authorized distributors instead of firms. It is further stated that an ESIC has

entered into agreement with RC firms, the payments should invariably be paid to the RC firms on which the purchase order was placed by obtaining original

invoices.

5. It is further stated that in view of the ESIC RC manual rule No.20 and

Audit Object, the payments to the petitioner were stopped and the petitioner is

directed to submit the invoices of main RC firms for processing the payments

vide Office Memo R.C.No.1580031/CPS/2021, dated 04.12.2021.

6. Having regard to the submissions made by both the counsels and in

view of reasons alike in the aforesaid order, the writ petition is allowed-in-part,

setting aside the impugned Memo R.C.No.1580031/CPS/2021, dated

04.12.2021, issued by Respondent No.2. Respondent No.2 is directed to

release the payment in respect of the Rate Contract Purchase orders within a

period of three weeks from the date of receipt of copy of this order. There

shall be no order as to costs.