APHC010127972024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) TUESDAY. THE FIFTEENTH DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION NO: 6535 OF 2024 Between: M/s.Haricons-GPR Infra (JV), Rep. by its authorised Signatory Sri Gangineni Rajesh Kumar S/o G.Prabhakar, Aged about 25 years, Occ: Business, R/o. D.No. 11-1-474-1-3, Aravind Nagar Ananthapur District, Andhra Pradesh - 515001. ...Petitioner AND 1. The State of Andhra Pradesh, Rep.by Special Chief Secretary to Government, Municipal Administration and Urban Development (UH) A.P Secretariat Buildings, Velagapudi, - Guntur District, Andhra Pradesh-522 238. 2. The State of Andhra Pradesh, Rep by its Principal Secretary Public Health and Municipal Engineering Department Department, Amaravathi, A.P Secretariat Buildings, Velagapudi, Amaravathi, Guntur District, Andhra Pradesh- 522 238. 3. The Project Director, APUFIDC, Srinivasanagar Bank Colony, Vijayawada, Pradesh - 520 008. 5^^ Floor, Dhoom Complex, NTR District, Andhra 4. The Engineerin Chief, Public Health Department, Flat Nos.504 and 601, Garuda Apartments, Tadepalli, Guntur District, Andhra Pradesh- 522 501. ? 5. The Superintending Engineer, Public Health Circle, Anantapuramu, Anantapur District, Andhra Pradesh - 515 001. 6. The Executive Engineer, Public Health Division, Anantapuramu, Anantapur District, Andhra Pradesh - 515 001. 7. The Executive Engineer, Public Health Division, Kadapa, YSR District, Andhra Pradesh - 516 001 8. The FGMO, Union Bank of India, D. No 12-11-17, 2nd Floor, Andhra Bank Building, R R Apparao Street, Vijayawada, NTR District, Andhra Pradesh-520 001. 9. The Regional Office, Union Bank of India, D. No 28-1-55,56, 2nd Floor, Sanghamesh Circle, Anantapuramu, Anantapur District, Andhra Pradesh-515 001. 10. The Chief Manager, Unidn Bank of India, Ram nagar Branch, Main Road, Near Registrar Office, Anantapuramu, Anantapur District, Andhra Pradesh - 515 001. ...Respondents 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 any writ, order or direction more particularly one in the nature of Writ of MANDAMUS declaring the action of the respondents 1. In not releasing the Bank Guarantees for an amount of Rs. 8,58,16,145/- (Eight Crores Fifty-Eight Lakhs Sixteen Thousand One Hundred Forty Five Rupees only). 2. In not releasing the Running Account Bills for the works completed with respect to the CAPEX AGREEMENTS bearing S.E (P.H) Agreement No. 19/2018-19, dated 08-03-2019 and S.E (P.H) Agreement No.20/2018-19, dated 08-03-2019, respectively, as the same is arbitrary, illegal and in violation of well settled principles of natural justice and consequently direct the respondents to issue the certificate for the value of the work done. Material Ordered etc., and release the same. r lA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High Court may be pleased to direct the Respondents not to take any coercive action by encashing bank guarantees with respect to the CAPEX AGREEMENTS bearing S.E (P.H) Agreement No. 19/2018-19, dated 08-03-2019 and S.E (p H) Agreement No.20/2018-19, dated 08-03-2019, respectively, as the same is arbitrary illegal and in violation of well settled principles of natural justice pending disposal of the above writ petition. Counsel for the Petitioner: SRI GHANTA SRIDHAR Counsel for the Respondent Nos.1, 3 to 7 : GP FOR MUNICIPAL ADMN URBAN DEVELOPMENT Counsel for the Respondent No.2 : GP FOR MEDICAL HEALTH AND FAMILY WELFARE Counsel for the Respondent Nos.8 to 10 : SMT. V. DYUMANI, SC FOR UNION BANK OF INDIA The Court made the following order: ; / ^pHC010127972024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) TUESDAY,THE FIFTEENTH DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION NO: 6535/2024 [3457] Between: 1.M/S.HARICONS-GPR INFRA (JV), REP. BY ITS AUTHORISED SIGNATORY SRI GANGINENI RAJESH KUMAR S/0 G.PRABHAKAR aged about 25 YEARS, OCC BUSINESS R/0 D.NO. 11-1-474-1-3’ ARAVIND NAGAR ANANTHAPUR district, ANDHRA PRADESH - 515 001 ...PETITIONER AND 1. THE STATE OF ANDHRA PRADESH, REP.BY SPECIAL CHIEF SECRETARY TO GOVERNMENT, MUNICIPAL ADMINISTRATION AND URBAN DEVELOPMENT (UH) DEPARTMENT SECRETARIAT BUILDINGS, VELAGAPUDI, GUNTUR DISTRICT, ANDHRA PRADESH-522 238. 2. THE STATE OF AP, REP BY ITS PRINCIPAL SECRETARY PUBLIC HEALTH AND MUNICIPAL ENGINEERING DEPARTMENT SECRETARIAT BUILDINGS, VELAGAPUDI, GUNTUR DISTRICT, ANDHRA PRADESH-522 238 3. THE PROJECT DIRECTOR, APUFIDC, 5TH FLOOR, DHOOM COMPLEX, SRI NIVASANAGAR BANK COLONY, VIJAYAWADA NTR DISTRICT, ANDHRA PRADESH - 520 008. 4. THE ENGINEERINCHIEF, PUBLIC HEALTH DEPARTMENT A.P AMARAVATHI A.P AMARAVATHI, , FLAT NOS.504AND 601, GARUDA APARTMENTS, TADEPALLI GUNTUR DISTRICT, ANDHRA PRADESH-522 501. 5. THE SUPERINTENDING ENGINEER, PUBLIC HEALTH CIRCLE ANANTAPURAMU, ANANTAPUR DISTRICT, ANDHRA PRADESH - 515001. 6. THE EXECUTIVE ENGINEER PUBLIC HEALTH DIVISION, ANANTAPURAMU, ANANTAPUR DISTRICT, ANDHRA PRADESH - 515 001. 7. THE EXECUTIVE ENGINEER, PUBLIC HEALTH DIVISION, KADAPA YSR DISTRICT, ANDHRA PRADESH - 516 001 8. THE FGMO, UNION BANK OF INDIA, D. NO 12-11-17, 2ND FLOOR, ANDHRA BANK BUILDING, R R APPARAO STREET, VIJAYAWADA NTR DISTRICT, ANDHRA PRADESH - 520 001. 9. THE REGIONAL OFFICE, UNION BANK OF INDIA , D. NO 28-1- 55,56, 2ND FLOOR, SANGHAMESH CIRCLE, ANANTAPURAMU ANANTAPUR DISTRICT, ANDHRA PRADESH - 515 001 2 10.THE CHIEF MANAGER, UNION BANK OF INDIA MAIN ROAD, RAM NAGAR NEAR REGISTRAR OFFICE, ANANTAPURAMU, ANANTAPUR DISTRICT, ANDHRA PRADESH - 515 001 BRANCH ...RESPONDENT(S): 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 topleased to issue any writ, order or direction more particularly one in the nature of Writ of MANDAMUS declaring the action of the respondents 1. In not releasing the Bank Guarantees for an amount of Rs. 8,58,16,145/- (Eight Crores Fifty-Eight Lakhs Sixteen Thousand One Hundred Forty Five Rupees only). 2. In not releasing the Running Account Bills for the works completed with respect to the CAPEX AGREEMENTS bearing S E (P H) Agreement No. 19/2018-19, dated 08-03-2019 and S.E (P.H) Agreement No.20/2018- 19, dated 08-03-2019, respectively, as the same is arbitrary, illegal and in violation of well settled principles of natural justice and consequently direct the respondents to issue the certificate for the value of the work done. Material Ordered etc., and release the same and to pass lA NO: 1 OF 2024 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 pleased to direct the Respondents not to take any coercive action by encashing bank guarantees with respect to the CAPEX AGREEMENTS bearing S.E (P.H) Agreement No. 19/2018-19, dated 08-03-2019 and S.E (P.H) Agreement No.20/2018-19, dated 08-03-2019, respectively, as the same is arbitrary, illegal and in violation of well settled principles of natural justice pending disposal of the above writ petition and to pass lA NO: 1 OF 2025 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 pleased to permit the petitoner to place additional material on record necessary for effective adjudication of the present Writ Petition and pass Counsel for the Petitioner: 1.GHANTASRIDHAR Counsel for the Respondent(S): 1.GP FOR MUNCIPAL ADMN URBAN DEV 2.GP FOR MED HEALTH AND FAMILY WELFARE 3.GP MUNCIPAL ADMN AND URBAN DEV AP 3 The Court made the following Order: Learned senior counsel appearing for the petitioner submits that the petitioner had entered into Agreement Nos. 19/2018-2019 and 20/2018-19, dated 08.03.2019. The agreements were entered into for execution of Water Supply Distribution Network, House Service Connections, AMR Meters and SCADA including Operation and Maintenance for seven years including defect liability period for a period of two years in Mydukur and Yerraguntia Municipalities of Kadapa district. Both agreements were to be executed within a period of twenty four (24) months from the date of agreement. The respondents were required to release 10% of the agreement value towards mobilization and for procurement of equipment for the respective construction works. The work could not be completed and the primary reason being lack of counterpart funding from the government and that disbursement has been stagnant since October, 2023 and though the Asian Infrastructure Investment Bank escalated the issue with the appropriate government, things could not change. Learned senior counsel attributes the inaction on part of the respondents and also non cooperation of the concerned officers. As such for non completion of the work vexed with the attitude of the respondents, the petitioner addressed a letter dated 07.03.2024 invoking Clause 61 of the agreement pertaining to payment upon termination clause and requested the respondents to release the payment in accordance with Clause 61(2) of the contract. - 2. Learned senior counsel submits withholding the bank guarantee of releasing the running account bills for the works This Court on 05.05.2025 after that the respondents are an amount of Rs.8.58,16.145/- apart from executed. 3. considering the submissions of the learned senior counsel and the learned Government observed that G.O.Rt.No.310 Pleader had dated 16.04.2025 was issued by the a committee for looking into the claims of the said committee is to consider the case of the petitioner as expeditiously as possible. This Court had further observed that, in the event, the committee constituted Government constituting petitioner. This Court had observed that the cannot arrive at a of bank guarantee may conclusion by the end of May, 2025, further extension be considered by the respondents. 4. Learned Government Pleader submits that G.O.Rt.No.310, dated 16.04.2025, earlier packages. It is also submitted G.O.Rt.No.192, dated 17.03.2025 purpose of issuing was to ensure smooth closure of all the that the Government has issued whereby the Government had taken a decision to cancel all the packages expired on 31.03.2024 and the also proposed to call for the remaining works, and as the time for completion of work had agreements had become ineffective. It was new tenders on the Public Health Circle for executing necessary steps to ensure timely completion of the project was also proposed. It is also submitted that, after committee, the scope of the constituting a committee is to study and offer recommendations for the inventory of pipes and other specific materials which are supplied for concreting; and submitting details regarding incomplete structures like ELSRs, WTPs and to recommend the release of bank guarantees of CAPEX and OPEX, and also to study other recommendations regarding interest on delayed payments as per the agreement clause. Heard the learned senior counsel appearing for the petitioner and learned Government Pleader for Municipal Administration and Urban Development. 5. 6. Once the agreement has been rescinded by the petitioner at point of time and the State at a later point of time, the agreements entered between the petitioner and the State have been rendered nullity on account of the decision of the State to recall fresh tenders for completion of the works. The terms and conditions of the contract entered between the petitioner and the State would have to be adhered to. Constituting a committee by issuance of G.O.Rt.No.310 dated 16.04.2025 contemplated under any of the clauses of the agreement. Constituting the committee is not as per the clauses of the agreement, now super imposing the committee on the petitioner is an attempt to delay the release of bank guarantee and settling the dues of the petitioner. This action is impermissible. Be that as it may, the State having constituted a committee with a mandate for the committee to submit the report within a period of one week from the date of the order i.e., 16.04.2025 and it has been almost three months, since then, there has been no development in so far as the release of the bank guarantee of the petitioner or finalization of the running account bills. one remaining is not 7. 6 8. On these considerations, this Court is of the considered vi are hereby directed to verify and release View that, the bank guarantee amount of Rs.8,58,16,145/-, and to finalize the bills due payable the petitioner to the extent of the work from the date of receipt of a the respondents 3 to 7 to completed, within a period of six weeks copy of this order, unmindful of the committee constituted in that regard. 9. Accordingly, the Writ Petition is disposed of. No costs. Pending miscellaneous petitions, if any, shall stand 10. closed. //TRUE COPY// Sd/- K. TATA RAO DEPUTY REGISTRAR To, SECTION OFFICER 1. The Special Chief Secretary to Government, Municipal Administration and Urban Development (UH) Department, State of Andhra Pradesh A.P Secretariat Buildings, Velagapudi, Amaravathi, Guntur District Andhra Pradesh-522 238. 2. The Principal Secretary Department, State of AP Public Health and Municipal Engineering . A.P Secretariat Buildings, Velagapudi, Amaravathi, Guntur District, Andhra Pradesh-522 238. 3. The Project Director, APUFIDC, Srinivasanagar Bank Colony, Vijayawada Pradesh - 520 008. 5 Floor, Dhoom Complex, NTR District, Andhra 4. The Engineerin Chief, Public Health Department, Flat Nos.504 and 601, Garuda Apartments, Tadepalli, Guntur District, Andhra Pradesh- 522 501. 5. The Superintending Engineer, Public Health Circle, Anantapuramu, Anantapur District, Andhra Pradesh 6. The Executive Engineer, -515 001. Public Health Division, Anantapuramu Anantapur District, Andhra Pradesh - 515 001. 7. The Executive Engineer, Public Health Division, Kadapa, YSR District, Andhra Pradesh - 516 001 8. The FGMO, Union Bank of India, D. No 12-11-17, 2nd Floor, Andhra Bank Building, R R Apparao Street, Vijayawada, NTR District, Andhra Pradesh-520 001. 9. The Regional Office, Union Bank of India, D. No 28-1-55,56, 2 Floor, Sanghamesh Circle, Anantapuramu, Anantapur District, Andhra Pradesh-515 001. 10. The Chief Manager, Union Bank of India, Ram nagar Branch, Main Road, Near Registrar Office, Andhra Pradesh - 515 001. 11. One CC to Sri Ghanta Sridhar, Advocate [OPUC] 12. Two CCs to GP for Municipal admn & Urban Development, High Court of Andhra Pradesh [OUT] 13. Two CCs to GP for Medical Health and Family Welfare, High Court of Andhra Pradesh [OUT] 14. One CC to Smt. V. Dyumani, SC for Union Bank of India (OPUC) 15. Two CD Copies nd Anantapuramu, Anantapur District, Cnr HIGH COURT DATED; 15/07/2025 ORDER WP NO. 6535 OF 2024 stands ^ 0 1 AUG 2025 €0 <3.\ ;SCinT«<tSecag^;y DISPOSING OF THE W.P. WITHOUT COSTS