1. Petitioner was a transport contractor with the A.P.State Civil Supplies Corporation Limited (1st respondent). This writ petition is instituted assailing orders in Proceeding No.PDS/2/ Movt.FG.5(12)/1924/2008-09, dated 10.02.2009. By the aforesaid order, the respondent corporation terminated the contract of transportation, forfeited the pending bills, security deposit and bank guarantee and black-listed the petitioner from participating in any future tenders of the 1st respondent corporation.

2. On 17.10.2008, 300 bags of food grains consisting of 14.805 metric tons of rice were loaded into the motor transport vehicle bearing registration No.AP-02-T-0546 belonging to the petitioner in F.C.I. Godown, Jangalpally and stock was intended to be unloaded at MSL point of Tanakal. The said lorry did not reach MSL point upto 10.30 p.m., on 18.10.2008. Complaint was lodged on 18.10.2008 complaining against the petitioner and driver of the Truck. The complaint was registered as Crime No.85 of 2008 in P.S. Rapthadu. By order dated 20.10.2008, the contract of the petitioner was suspended by the 2nd respondent on the allegation that PDS stock/distribution system stocks were diverted.