M. DAMODAAR REDDY Vs. SINGARENI COLLEIES CO.LTD.

JUDGEMENT

(1.) This writ petition is filed seeking the following relief :

(2.) The petitioner, M/s. M. Damodaar Reddy, a partnership firm, being Class-I Contractor, engaged in the civil works for the last 25 years. For the purpose of bidding for a contract against a tender, dtd. 3/3/2017, floated by the Singareni Collieries Company Limited, respondent Nos. 1 to 3 in the year 2017 for the work of "Construction of Cement Concrete pavement at MNG OCP, Manuguru Area, Bhadradri Kothagudem District", the petitioner formed a Joint Venture (JV) in the name of SVC-MDR with M/s. Sri Venkateswara Constructions. The SVC-MDR (JV) emerged as successful bidder; entered into agreement with the respondents-Company; completed the work in time i.e., by 31/10/2018, to the satisfaction of the respondents and a certificate of Quality Control Inspection Report, dtd. 25/4/2019 was also issued in favour of SVC-MDR. Subsequently, the final bill was also settled.

(3.) Later, in response to the e-procurement tender Notice No. CRP/CVL/KGM/TN-63/2018-19, dtd. 19/11/2018 issued by the respondents-Company for "Construction of 3 Nos. 100 tonnes steel bunkers, connected gantries, Retaining wall and RCC foundations for 3 Nos. 500 TPH feeder breakers at JVR OC-II, Sathupalli, Khammam District, Telangana State", the petitioner formed a JV in the name of SRICO-MDR. The JV, SRICO-MDR emerged as successful bidder; contract was awarded in its favour; and after entering into an agreement on 19/11/2018 with the respondents-Company, the SRICO-MDR commenced the work. Whileso, the respondent No. 3 issued a letter, dtd. 1/9/2020 to the earlier JV i.e., SVC-MDR in relation to the tender works, dtd. 3/3/2017 stating that the Vigilance Enforcement Department had conducted an enquiry on the subject work and found that "the average core strength of 9 Nos. of cores is not satisfying the next 2 lower grades i.e., M-35 and M-30, hence the CC Pavement of size 140 x 70 m was rejected". Consequently, in its report, the Vigilance Department had recommended to "recover an amount of Rs.86,27,120.00 from M/s. SVC-MDR (JV), Paloncha, Bhadradri Kothagudem District". By the said letter, the respondent No. 3 advised the SVC-MDR to pay an amount of Rs.86,27,120.00 to the respondents-Company within 15 days. Moreover, on the same day, the respondent No. 3 requested the AGM (Civil)/MNG and DGM (Civil) KGM Area to withhold an amount of Rs.86,27,120.00 from the bills payable to the petitioner in the JV with SRICO (SRICO-MDR). Hence, the present writ petition.