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2023 Supreme(Telangana) 148

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
SUREPALLI NANDA, J.
M/s SEW Kranthi JV – Appellant
Versus
The State of Telangana and others - Respondents
W.P.No.18129 of 2021
Decided on : 24-03-2023

Advocates:
Advocate Appeared:
For the Appellant : Mr. A. Venkatesh
For the Respondents: Mr A.Sanjeev Kumar

Headnote:

Constitution of India,1950 - Articles 14, 21, 19(1) (g), 226 , 12 , 14 and 300A - Arbitration Act, 1940 - Arbitral/mediation institution in all their contracts, agreements - Handing over of encumbrance free land - Respondent has specifically mentioned that petitioner is entitled for payment and that petitioner is liable to pay an amount Department - Respondents may withhold an amount which is due to petitioner by the 3 respondent which is pending bill and EMD - Held, Petitioner who is the counterparty to agreement entered into by and between petitioner and Respondents duly applying and bring about a suitable amendment to designate International Arbitration and Mediation Centre (IAMC) Hyderabad as the Arbitral Mediation Institution to utilize services of IAMCH for conducting their arbitration relating to all the disputes between the petitioner and the respondents herein arising out of Contract vide agreement - Petitions disposed off

ORDER :

Heard the learned Senior Counsel Sri A. Venkatesh appearing for the petitioner and the Special Government Pleader Sri. A.Snajeev Kumar appearing on behalf of the Respondents.

2. The Main Prayer sought for by the Petitioner:

    “to issue a Writ or an Order or a Direction, more particularly one in the nature of Writ of Mandamus, to declare the Inaction of the respondent No.5 in considering the representation dt. 26.07.2021 of the petitioner with reference to the G.O.Ms.No.23 dt.24.06.2021, wherein the ongoing irrigation projects were given extension of time, including the work undertaken by the petitioner as per the agreement No. AB No. SE/JCR/DLIS/WGL/EPC/05/2009-10 dated 20.01.2010 placed at S1.No.34 of the annexure in the above G.O., and release of payment of unclaimed bills of Rs.20 Crores as illegal, arbitrary and violative of Articles 14. Article 21. Article 19(1) (g) and Article 300A of the Constitution of India and violative of the principles of natural justice and consequently direct the Respondents to release the pending payment of Rs. 15,87.86.155/-Crores (Rupees Fifteen Crores Eighty Seven Lakhs Eighty Six Thousand One Hundred and Fifty Five Only) to the petitioner covered under RA bills dt. 29.10.2020, 30.12.2020 and 02.02.2021. pending the disposal of the above writ petition.”

PERUSED THE RECORD

3. Interim Orders of this court in connected W.P. No. 24761 of 2021 dated 04.10.2021 read as under:

    “Learned Additional Advocate General takes notice on behalf of the respondents and seeks time to file counter.

List on 21.10.2021 along with W.P.Nos.8906 and 21122 of 2021.

In the impugned order dated 30.08.2021, the 3rd respondent has specifically mentioned that the petitioner is entitled for payment of Rs.15,87,86,155/- and that the petitioner is liable to pay an amount of Rs.28,07,60,001/- to the Department.

Sri B. Chandrasen Reddy, learned senior counsel appearing for the petitioner would submit that the 3 respondent is going to take steps pursuant to the impugned order dated 30.08.2021. He expresses his apprehension that the respondents may withhold an amount of Rs.25 crores which is due to the petitioner by the 3 respondent which is pending bill and EMD of Rs.8 crores.

Learned Addl. Advocate General, on instructions, would submit that since there is an arbitration clause and it is an arbitral dispute, the petitioner has to invoke the same. Instead of doing so, the petitioner has filed the present writ petition which is not maintainable.

In view of the same, matter requires examination.

Therefore, the 3rd respondent is directed not to take further steps pursuant to notice dated 30.08.2021.”

4. G.O.Ms.No.6 dated 17.03.2022 issued by the Government of Telangana, Law (E) Department, reads as under:

    “The India's First International Arbitration and Mediation Centre at Hyderabad (IAMCH) has been set up by the International Arbitration and Mediation Centre Trust (IAMC Trust), Hyderabad, a public charitable trust declared by the Hon'ble Chief Justice of India under a Trust Deed first read above, executed on 20th August, 2021, to promote various types of alternate dispute resolution (ADR), in particular arbitration, mediation and conciliation, which would provide an effective avenue for access to justice, so as to render speedy and effective justice and also to reduce the caseload on the courts in the State.

2. A Memorandum of Understanding (MoU) second read above has been entered between the Government of Telangana and the International Arbitration and Mediation Centre Trust (IAMC Trust) on 27.10.2021.

3. According to Clause-5 (IACH's Case Management Services) of the Memorandum of Understanding, Government hereby direct all the Ministries, Departments, Public Sector Companies, and other entities controlled or managed by the Government of Telangana:

(i) to designate IAMCH as the arbitral/mediation institution in all their contracts, ag

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