ORDER :

This Writ petition is filed with the following relief:

“….to issue a Writ, more specifically in the nature of Writ of Mandamus, declaring the actions of the respondent No.2 in deducting interest on the mobilization advance of Contract No.1078 from the Bills of Contract No.7600006776 as illegal, arbitrary and against the principles of natural justice and consequently direct the respondent No.2 to release the payments due including all the deductions of interest on mobilization advance of Contract No.1078 effected on the bills of Contract No.7600006776 immediately along with the interest and costs”.

2. Heard Sri P.Sri Raghu Ram, Learned Senior Counsel appearing for Sri P.Sri Ram, Counsel for the petitioner and Sri E.Madan Mohan Rao, appearing for Sri B.Arjun, Counsel for the respondent Nos.2 and 3.

3. The learned Senior Counsel for the petitioner submits that the petitioner-company and the 2nd respondent-Corporation entered into 1st Contract on 15.11.2006 vide Contract ROC No.1078. Disputes arose between the petitioner-company and the respondents with regard to said contract regarding non-availability of resource as claimed by the respondents and the consequent reduction in production causing huge losses to the petitioner. The parties entered into Arbitration to settle the disputes as provided contract No.1. The Bank Guarantee for the mobilization of advance in Contract No.1 was sought to be invoked by the respondents herein vide CRP/MP/Sec.12/AMT/2014 /556 dated 22.11.2014 while the Arbitration has not reached its conclusion. Against the same the petitioner filed W.P.No.13807 of 2016 and this Court granted interim stay in the same and the matter is still pending.

4. The learned Senior Counsel for the petitioner further submitted that the Arbitral Award was ended on 12.02.2016 in favour of the petitioner and directed the respondent No.2-Corporation to pay a total sum of Rs.88,58,25,243/- (Rupees Eighty Eight Crores Fifty Eight Lakh Twenty Five Thousand Two Hundred and Forty Three only). Against the said Arbitral Award, the respondent No.2-Corporation preferred appeal under Section 34 of the Arbitration and Conciliation Act 1996 in COP No.90 of 2017 on the file of City Civil Court, and interim stay was granted by the said Court. Against the said interim stay, the petitioner filed CRP No.7184 of 2018 and this Court has been pleased to passed interim order on 23.04.2019, directed the respondents to pay 50% of the awarded amount after adjustment of Mobilization Advance due pending disposal of the application under Section 34 of the Arbitration and Conciliation Act, 1996 and thereafter the orders of this Court was modified by the Hon’ble Supreme Court of India in SLA (C) No.17920 of 2019 on 09.08.2019 to the extent of requiring the petitioner to furnish the security for the amount paid by the respondents herein. The respondents herein requested to deduct the advance due amount of Rs.26,83,00,000/-(Twenty Six Crores Eighty Three Lakhs only) from the amount awarded by the Tribunal before disbursing 50% of the award against the security as directed by this Court. After adjusting the amount due to the petitioner from the amount awarded was rounded off to Rs.60,00,00,000/- (Rupees Sixty Crores only). While it being so, the petitioner-company and the respondent Corporation entered into another contract on 13.03.2017 vide contract No. No.7600006776 (hereinafter referred to as “Contract No.2”). The contract No.2 was with respect to work of extraction of coal by High wall Mining Technology on a cost per tone basis. The said work as was valued at Rs.1,18,63,80,000/- (Rupees One Hundred Eighteen Crores Sixty Three Lakhs Eighty Thousand only).

5. The learned Senior Counsel for the petitioner further submits that, while the work was in progress, the petitioner-company was orally threatened by the respondent-corporation to acknowledge that an amount of Rs.3,30,24,080.16 Ps (Rupees Three Crores Thirty Lakhs Twenty Four Thousand Eighty And Sixtee