SRI VENKATA RAJULAMMA MODERN RICE MILL v. THE STATE OF ANDHRA PRADESH
WP/17283/2026 · 2026-06-29
Venkateswarlu Nimmagadda
body2026
DailyLaw.ai
[ 2026 DAILYLAW 3651 (AP) · dailylaw.ai ]
DailyLaw.ai
[ 2026 DAILYLAW 3651 (AP) · dailylaw.ai ]
Judgment text
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Date of reserved for orders : Date of pronouncement : Date of uploading : APHC010330562026
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3329] TUESDAY, THE 30th DAY OF JUNE 2026 PRESENT THE HONOURABLE SRI JUSTICE VENKATESWARLU NIMMAGADDA WRIT PETITION NO: 17283/2026 Between:
1. SRI VENKATA RAJULAMMA MODERN RICE MILL, REP. BY ITS PROPRIETOR POGIRI APPALA NAIDU, S/O. TAVITI NAIDU , AGED ABOUT 60 YEARS, R/O. MARIVALASA VILLAGE, G. SIGADAM MANDAL, SRIKAKULAM DISTRICT, ANDHRA PRADESH - 532 148.
GSTIN 37EKJPP7041H1ZS
...PETITIONER AND
1. THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, CIVIL SUPPLIES DEPARTMENT,
SECRETARIAT BUILDINGS, VELAGAPUDI, GUNTUR DISTRICT - 522503.
2. THE ANDHRA PRADESH CIVIL SUPPLIES CORPORATION, REP. BY ITS VICE CHAIRMAN AND MANAGING DIRECTOR,
KANURU, VIJAYAWADA, KRISHNA DISTRICT - 520007.
3. THE DISTRICT COLLECTOR CIVIL SUPPLIES, SRIKAKULAM DISTRICT, AT SRIKAKULAM - 532001.
4. THE JOINT COLLECTOR CIVIL SUPPLIES, SRIKAKULAM DISTRICT AT SRIKAKULAM - 532001.
5. THE ANDHRA PRADESH CIVIL SUPPLIES CORPORATION, REP. BY ITS DISTRICT MANAGER, CIVIL SUPPLIES BHAVAN, SRIKAKULAM DISTRICT, SRIKAKULAM - 532001.
6. THE DISTRICT SUPPLIES OFFICER, CIVIL SUPPLIES BHAVAN, SRIKAKULAM DISTRICT, SRIKAKULAM - 532001.
7. THE UNION OF INDIA, REP. BY ITS SECRETARY, MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION, KRISHI BHAWAN, NEW DELHI - 110 001.
8. UNION BANK OF INDIA, REP. BY ITS BRANCH MANAGER, RAJAM BRANCH, OPPOSITE SAMPATH BHAVAN, PIN CODE - 532 147, RAJAM, VIZIANAGARAM DISTRICT, ANDHRA PRADESH.
...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
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2 pleased topleased to issue a Writ of Mandamus or any other appropriate Writ,
Order or Direction Declaring the action of the Respondents in blocking the Petitioners access in the AP Paddy Procurement Portal, and attempting to invoke/encash the Bank Guarantees furnished by the Petitioner, and not considering the representation of the Petitioner dated 23-06-2026 and not permitting the Petitioner to deliver the balance custom milled rice as illegal, arbitrary, violative of principles of natural justice and violative of Articles 14, 19(1)(g) and 300A of the Constitution of India and consequently direct the Respondents to forthwith reopen the Petitioners access in the AP Paddy Procurement Portal, permit generation of way bills and accept the balance rice due from the Petitioner by directing the 2nd Respondent to process and release the pending milling charges and other amounts aggregating to Rs.1,58,85,216/- (Rupees One Crore Fifty Eight Lakhs Eighty Five Thousand Two Hundred and Sixteen only) lawfully payable to the Petitioner for the milling seasons 2018-19, 2023-24 and 2024-25 and to pass IA NO: 1 OF 2026 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 grant an interim direction restraining Respondents 2, 5 and 8 from invoking, encashing or in any manner acting upon the Bank Guarantee for a sum of Rs.85,00,000/- furnished by the Petitioner with the 8th Respondent Bank vide., BG ref.no. 04661GI3D5151125 for an amount of
Rs. 18,00,000/- 04661GI3D4881925 for an amount of Rs. 54,00,000/- and another 04661GI3D521825 Dated 19/12/25 for an amount of Rs. 13,00,000/- of the petitioner, pending disposal of the above writ petition and to pass IA NO: 2 OF 2026 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 may be pleased to direct Respondents 2 to 6 to forthwith restore and reopen the Petitioner’s access to the AP Paddy Procurement Portal, permit generation of way bills, and receive the balance quantity of Custom Milled Rice from the Petitioner, pending disposal of the above writ petition and to pass Counsel for the Petitioner:
1. JAMI MADHAVI Counsel for the Respondent(S):
1. GP FOR CIVIL SUPPLIES The Court made the following:
NV,J WP.No.17283 of 2026
3 THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA
WRIT PETITION NO.17283 OF 2026
ORDER:
1. This writ petition is filed under Article 226 of the Constitution of India, claiming the following relief:
“to issue a Writ of Mandamus or any other appropriate Writ
Order or Direction Declaring the action of the Respondents in blocking the Petitioners access in the AP Paddy Procurement Portal and attempting to invoke/encash the Bank Guarantees furnished by the Petitioner and not considering the representation of the Petitioner dated 23.06.2026 and not permitting the Petitioner to deliver the balance custom milled rice as illegal arbitrary violative of principles of natural justice and violative of Articles 14, 19(1)(g) and 300-A of the Constitution of India and consequently direct the Respondents to forthwith reopen the Petitioners access in the AP Paddy Procurement Portal permit generation of way bills and accept the balance rice due from the Petitioner by directing the 2nd Respondent to process and release the pending milling charges and other amounts aggregating to Rs.1,58,85,216/- (Rupees One Crore Fifty Eight Lakhs Eighty Five Thousand Two Hundred and Sixteen only) lawfully payable to the Petitioner for the milling seasons 2018-19, 2023-24 and 2024-25”
2. The case of the petitioner herein is that, the petitioner is a registered rice miller carrying on business under the name and style of Sri Venkata Rajulamma Modern Rice Mill. The petitioner entered into an agreement with Respondent No.2 for supply of Custom Milling Rice (CMR) for the procurement year 2025–2026. According to the petitioner, CMR would be
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4 supplied based on the availability of paddy. However, during the subsistence of the agreement, Respondent No.2 blocked the A.P. Paddy Procurement Portal, through which waybills to be generated for transportation of CMR. As a result, the petitioner failed to transport and supply the CMR in accordance with the terms of the agreement. Thereafter, Respondent No.2 issued a notice dated 19.06.2026 directing the petitioner to supply the balance agreed quantity of CMR within one week. The petitioner submitted an explanation on 23.06.2026 stating that the delay occurred only due to the inaccessibility of website - A.P. Paddy Procurement Portal to the petitioner, as such waybills could not be generated. Then, considering the explanation, the respondents extended the time for supply of CMR up to 30.06.2026. Despite the extension, the petitioner contends that the respondents did not make the portal functional or issue waybills, thereby prevented the petitioner from supplying the CMR. Meanwhile, the respondents initiated steps to invoke the petitioner's bank guarantee for a sum of Rs.1,58,85,216/-, leading to the filing of the present writ petition. 3.
During hearing, learned counsel for the petitioner submits that the petitioner could not supply the remaining CMR solely because the A.P. Paddy Procurement Portal was blocked and no waybills were issued. It
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5 was argued that without waybills, transportation and delivery of CMR was very difficult. It was further submitted that although the respondents extended the time for supply till 30.06.2026, they failed to restore access to the portal or issue waybills. Therefore, the petitioner cannot be held responsible for the delay, and the proposed encashment of the bank guarantee is arbitrary. Learned counsel further submitted that the petitioner is ready and willing to supply the remaining CMR if reasonable time is granted. 4. On the other hand, learned Standing Counsel for the Andhra Pradesh State Civil Supplies Corporation, furnished written instructions dated 30.06.2026 issued by the District Civil Supplies Manager, APSSCL, Srikakulam, and submits that after issuance of notice dated 19.06.2026, the petitioner submitted an explanation, which was considered by the Corporation. Based on the explanation, time was granted to the petitioner to deliver the CMR up to 12:00 midnight intervening 30.06.2026 and
01.07.2026. It was submitted that despite the extension, the petitioner failed to supply the CMR in terms of the agreement. Therefore, the respondents had no option but to invoke the bank guarantee to procure the required quantity of CMR from other sources at the prevailing market price. With regard to the request for further extension, the learned Standing Counsel
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6 opposed the grant of one week's time and submitted that, at the most, only three days could be granted so that the Corporation could comply with its contractual obligations with Union of India
5. Heard both counsel and perused the material available on record. 6. The fact remains that the petitioner was required to supply the Custom Milling Rice (CMR) in terms of the agreement entered into with Respondent No.2.
The dispute between the parties related to the availability of the A.P. Paddy Procurement Portal and the issuance of waybills, which, according to the petitioner, prevented the transportation and supply of CMR. The rival contentions raised by both parties involved disputed questions of fact regarding the functioning of the portal and the petitioner's inability to perform its contractual obligations. Such technical and factual disputes could not be conclusively adjudicated in the present writ proceedings. 7. Considering the facts and circumstances of the case and also the
submissions made by the learned counsel for the petitioner that the petitioner is ready and willing to supply the remaining quantity of CMR, and interests of both parties, the petitioner is permitted to complete the supply of CMR as per the terms of agreement to the respondent on or before
05.07.2026. This Court further makes it clear that, in the event of the
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7 petitioner's failure to comply with the said direction, the respondents would be at liberty to proceed in accordance with law, including invoking the bank guarantee.
8. Accordingly, the writ petition is disposed of. No costs.
9. Consequently, miscellaneous petitions pending if any, shall also stand dismissed. No costs.
10. The learned Standing Counsel is directed to communicate the order to the Corporation and to ensure that the A.P. Paddy Procurement Portal is made available to the petitioner for obtaining waybills required for transportation of the CMR.
______________________________________ JUSTICE VENKATESWARLU NIMMAGADDA
Date:30.06.2026 Note: Issue copy by 01.07.2026 b/o SP
Whether the order is : Speaking Yes/No / Reasoned Yes/No Reportable Yes/No / Non-Reportable Yes/No