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2023 Supreme(Telangana) 151

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 – Respondent
W.P.No.24761 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 226, 300A , 14, 21 and 19(1) (g) - Termination of contract - Denying the payment - Respondent has specifically mentioned that petitioner is entitled for payment petitioner is liable to pay an amount Department - He expresses his apprehension that respondents may withhold an amount crores which is due to petitioner by 3 respondent which is pending bill - Held, Policy for implementing which such discretion has been conferred - In all such cases and in any other fit and proper case a High Court can, in the exercise of its jurisdiction under Article 226, issue a writ of mandamus or a writ in nature of mandamus or pass orders and give directions to compel performance in a proper and lawful manner of the discretion conferred upon government or a public authority, and in a proper case, in order to prevent injustice resulting to the concerned parties - Petitions disposed off

ORDER :

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

2. The Main Prayer sought for by the Petitioner:

    “to declare the action of the Respondent No.3 in issuing Lr. No. EE/Irrigation/Divn.3/WGL/DEE(T)/TS3/124/B/M,dt.30.08.2021 in denying the payment of Rs. 15,87,86,155.00 towards pending bills to the petitioner JV and instead called upon them to pay an amount of Rs. 28.07.60,001.00 for termination of contract under Clause 55 and Clause 56 i.e.. Payment upon termination of Agreement Bond Volume-1. Part (A) of General Conditions of Contract 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 set aside the same, by directing the respondents to pay a sum of Rs. 622.34 Crores towards damages to the petitioner, 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, agreements, purchase orders, etc. (Contracts) having value of more than Rs.3 crores (Rupees three crores only) and containing an arbitration clause;

(ii) In respect of subsisting Contracts of value of more than Rs.10 crores (Rupees ten crores only) to discuss with the counterparty

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