PULIPATI ENGINEERS P LIMITED Vs. PRINCIPAL SECRETARY TO GOVERNMENT PANCHAYAT RAJ AND RURAL DEVELOPMENT DEPARTMENT GOVT OF ANDHRA PRADESH

JUDGEMENT

(1.) All these Writ Petitions are filed to declare G.O.Ms. No.301, Panchayat Raj and Rural Development (Progms.II) Dept, dated 13-7-98 as illegal, arbitrary and contrary to the terms and conditions of the agreement entered by the petitioners for executing the works in Panchayat Raj Department and to set-aside the same and consequently declare the Circular Memo HOT1/1924/98, dated 4-8-98 of the 2nd respondent and the latest memo of even number, dated 13-4-99 as illegal and arbitrary and to direct the respondents to refund the amount if any recovered from the petitioners in pursuance of G.O.Ms. No.301, dated 13-7-1998.

(2.) It is the case of the petitioners that they are special class contractors registered with the Government of A.P. and carrying on works in various departments and they have entered into agreements for carrying the various works under comprehensive protected water supply scheme at various places in the State in the Panchayat Raj and Rural Water Supply Department with the concerned Superintending Engineers in the year 1997 and 1998, that the 1st respondent issued G.O.Ms. No.301, dated 13-7-1998 permitting all the Executive Engineers of the Panchayat Raj Engineering Wing to conclude supplemental agreements with the contractors for the works under execution and to be entrusted in future and to deduct 0.25% of the gross bill amount as per the request of the Builders Association of India and to remit the said amount to the Institute of Construction Technology of India at Hyderabad by 5th of every succeeding month, that subsequently the 2nd respondent issued various circulars and Memos and the latest being a circular dt.13-4-1999 stating that if the Executive Engineers do not deduct 0.25% from the bills of the contractors and remit the same to the Institute of Construction Technology of India at Hyderabad, action will be taken to deduct the same amount from the salary of the Executive Engineers concerned. Aggrieved by the action of the respondents, these Writ Petitions are filed.

(3.) A counter-affidavit has been filed on behalf of the respondents stating that the Builders Association of India, Andhra Pradesh has made a representation to the government for inclusion of a clause in agreement/tenders for deduction of an amount at the rate of 0.25% of gross amount of bills for utilising the same for establishment of Institute of Construction Technology of India renamed as 'National Academy of Construction' at Hyderabad for meeting the expenditure in running the Institute, that basing on the representation, the Government issued G.O.Ms. No.301, dated 13-7-1998 permitting the Executive Engineers of Panchayat Raj Department to enter into supplemental agreements with the contractors for works under execution and to be entrusted in future and to deduct 0.25% of gross amount of bills and remit it to the Institute of Construction Technology of India at Hyderabad, that the Government also issued orders in U.O. Note No.29840/R- III (2)/98 of T.R & B Dept., dated 25-2-99 stating that the contractors should send their workmen to the training courses offered by National Academy of Construction from June '99 onwards and the contractors should not be given works unless their workmen are trained by National Academy of Construction, that keeping the Government directions in view, the 2nd respondent issued Cr. Memo No.Tl/19240/98, dated 13-4-99 to collect 0.25% contribution from the contractors compulsorily, that the Institute is intended to give training to both Engineers in the various departments in State Government and contractors with their workmen, that the Government have issued orders for collecting 0.25% contribution from the work bills of the contractors in order to meet the day-to-day recurring expenditure of the Institution and it is useful for them and hence all the Writ Petitions are liable to be dismissed.