Point of Law: Justification for issuing the impugned order cannot be permitted to be raised in the counter affidavit.

ORDER :

1. This Writ Petition, filed under Article 226 of the Constitution of India, challenges the proceedings of the Andhra Pradesh State Civil Supplies Corporation Limited, issued vide File No. FCS51-13022/49/2021-MRKT SEC-APSCSCL dated 24.11.2021. By way of the impugned proceedings, the respondent-Corporation terminated Stage-I contract period of the petitioners, apart from withholding all pending bills and blacklisting the petitioner for a period of three years.

2. According to the petitioners, petition No. 1 is a firm and petitioner No. 2 is its Proprietor. Pursuant to the tender process undertaken, the respondent-Corporation awarded Stage-I Food Grains Transport Contract for transportation of rice, oils and pulses from FCI/Civil Supplies, Buffer godown to various Mandal level stock points in Ananthapuramu District. The petitioners provided EMD for Rs. 72,00,000/- security deposit for Rs. 35,70,000/- bank guarantee for Rs. 3,59,00,000/-. An agreement came to be entered into on 22.04.2021. Thereafter, the respondent-Corporation issued a work order in favour of the petitioner-contractor for the period ending by 31.03.2023 and according to the petitioners, operations were commenced from 29.04.2021 by engaging private vehicles.

3. It is further stated that as a part of regular operations, the petitioners engaged 67 vehicles on hire basis on 13.08.2021 for transportation of goods from the Andhra Pradesh State Civil Supplies Buffer Godown, Zangalapalli to various MLS points in Ananthapuramu District. In the present Writ Petition, the issue pertains to vehicle bearing No. AP 02 TB 0036 and the goods, i.e. 520 bags of rice, destined to Tadipatri MLS point, vide delivery Challan No. 5845 dated 13.08.2021. It is further stated in the writ affidavit that the said 520 rice bags were delivered to MLS point, Tadipatri on 13.08.2021 and in-charge of MLS point, Tadipatri, issued acknowledgment in token of the receipt of the goods and the same was submitted to respondent No. 4 on 14.08.2021 at 10-07 a.m. through WhatsApp. It is further stated that on 14.08.2021 at about 10-00 a.m., the police, Chilamathur intercepted the subject vehicle and registered Crime No. 362 of 2021 for the offences alleged under Sections 420 and 406 I.P.C. and Section 7(1)(A) of the Essential Commodities Act, 1955. The District Manager-respondent No. 4 herein cancelled the contract of the petitioners herein without issuing notice and the said order came to be challenged before this Court by filing Writ Petition No. 18952 of 2021 and this Court allowed the said Writ Petition by way of an order dated 07.09.2021, setting aside the said order of cancellation of the contract. Subsequently, the Vice Chairman and the Managing Director of the respondent- Corporation, vide order dated 31.08.2021, terminated the subject contract and the same was assailed in Writ Petition No. 19770 of 2021 by the petitioner herein and the said Writ Petition was allowed by this Court on 13.09.2021 and the operative portion of the said order reads as under:

“For the aforesaid reasons, this Writ Petition is allowed, setting aside the impugned proceedings bearing Lr. No. PDS/3/18/2755/2021 dated 31.08.2021 issued by 2nd respondent and the matter is remanded to 2nd respondent for passing orders afresh. The competent authority shall issue a show cause notice, asking the petitioners herein to submit explanation as to the proposed action and to take appropriate action strictly in accordance with law and after adhering to the observations made supra. It is brought to the notice of this Court that after the Writ Petition is filed, the bank guarantee furnished by the petitioners herein was invoked by the respondents. If that being so, no further coercive action in respect of the said bank guarantee shall be taken pending the orders to be passed as indicated above. There shall be no order as to costs o