GIMPEX LIMITED Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) The petitioner-appellant Company, it is not in dispute, is allotted 20,000 metric tonnes of Chemical 'A' Grade Barytes under an agreement by the Andhra Pradesh Mineral Development Corporation, (hereinafter called 'the Corporation'), which is a State Government undertaking. The Corporation has- the sole prerogative to expolit the sub-soil mineral rights in the area. The above agreement, which is reflected in the letter dated 19-10-1995, however, has not been honoured by the Corporation, it is alleged, because by an order dated 19-10-1995, the supply was suspended purportedly under the instructions of the Principal Secretary to the Government, Department of Industries and Commerce. The petitioner-appellant, however, addressed a letter dated 26-10-1995 to the Secretary concerned and sought action for delivery of the Barytes, pursuant to the said agreement. The letter remained unreplied and it is alleged, while in the case of the petitioner-appellant, the Corporation has chosen to suspend the agreement without formally cancelling the same, in the case of M/s. Trimex Industries Limited and others, who are similarly situated, it has proceeded to honour the agreements.

(2.) The Corporation, in its counter, has admitted the agreement and also that the same has not been given effect to. It has explained, however, that M/s. Trimex Industries Limited and others are supplied Barytes pursuant to the agreements because they are prior commitments and that the Corporation is bound to give effect to the directives issued by the Government, particularly when the Secretary, Industries and Commerce, Government of Andhra Pradesh reviewed the performance of the Corporation on 21-10-1995 and instructed the Corporation to send a special report in connection with the supply of 5,000 metric tonnes Chemical Grade 'B' to the petitioner-Company and await Government's instructions before giving any contract to outside parties, particularly when already the contracts were entered into with two parties i.e., M/s. Trimex Industries Limited and M/s. Indian Barytes and Chemicals Limited. Since the Government has not given clearance and the validity of the supply order had expired by 29-2-1996, the Corporation has not complied with the terms of the agreement. The Corporation has also contended that materials for supply to the petitioner-Company are not available, which fact has been seriously contested by the petitioner-appellant.

(3.) It is conceded before us on behalf of the Corporation that its supply of Barytes to any party is linked up with excavation work and it has not given any answer to the contention that in respect of supply of 1.1 lakh metric tonnes of 'B' grade Barytes to Trimex, it has entrusted further excavation and after extraction Barytes have been supplied. Learned Single Judge however, has held as follows:-