SATYA ENTERPRISES HYDERABAD Vs. SECRETARY TO GOVT

JUDGEMENT

(1.) This writ petition is filed for a Mandamus to set aside proceedings dated 18.05.2004, whereby the respondents have shown a sum of Rs. 1,13,570/ - as recoverable from the final bill in respect of the contract bearing No. ADBP-16.

(2.) The petitioner is a Contractor, whose tender was accepted by respondent No. 3 for execution of work relating to upgradation of rural road work in Adilabad District. The petitioner entered into an agreement with respondent No. 3 on 30.03.2000 for execution of the said work, whose approximate value was Rs. 128 lakhs. According to the petitioner, the work was completed on 24.07.2002. During the course of the execution of the said work, respondent No. 1 issued G.O. Ms. No. 331, Industries and Commerce (M-I) Department dated 21.06.2000, notifying an amendment to Sub-rule (1) of Rule 10 of the Andhra Pradesh Minor Mineral Concession Rules, 1966 (for short "the Rules"). The said amendment, Inter alia, amended Schedules I and II of the Rules. The present case pertains to Schedule-I dealing with the rates of seigniorage charges, which were revised at Rs. 33/ - per cubic meter for building stone; rough stone and road metal. By the impugned letter, respondent No. 2 had shown the sum of Rs. 1,13,570/ - as recoverable at the revised rates of seigniorage charges applying the above amended Rule. Feeling aggrieved by the said letter, the petitioner filed the present writ petition.

(3.) At the hearing, Smt V. Padma, learned Counsel for the petitioner, submitted that in the face of the concluded contract between the petitioner and the respondents, the former cannot be saddled with the additional liability by applying the amended Rule, which came into force during the course of execution of the contract. In support of her contention, the learned Counsel placed reliance on judgment dated 25.06.2004 of this Court in Writ Petition No. 10568 of 2004. (M/s Sri Venkateshwara Constructions v. The Superintending Engineer, Panchayat Raj Circle, Warangal and Ors.).