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2023 Supreme(Telangana) 627

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
SUREPALLI NANDA, J.
M/s Green Power Technologies - Petitioner
Versus
The State of Telangana and Another - Respondents
W.P. No. 15222 of 2023
Decided On : 11-09-2023

Advocates Appeared:
For the Petitioner: Mr K.L.B. Kumar.
For the Respondents: Mr. A. Ravibabu.

The necessity of compliance with the principles of natural justice in cases of blacklisting and the requirement for a fair hearing to the party being blacklisted.

Headnote:

Blacklisting - Solar Systems Installation - TSREDCO/SE/SPV Off Grid Systems-PV/2018-19/2019/507 - The court discussed the actions of the 2nd Respondent in blacklisting the petitioner firm and seizing a sum of Rs.65,70,000/- by forfeiting the performance security deposits. The court found the order impugned to be arbitrary and illegal and set it aside. The 2nd Respondent was directed to initiate appropriate action against the Petitioner in conformity with principles of natural justice.

Fact of the Case:

The petitioner, a solar systems installation firm, was blacklisted by the 2nd Respondent and a sum of Rs.65,70,000/- was seized by forfeiting the performance security deposits. The petitioner filed a Writ Petition challenging the actions of the 2nd Respondent.

Finding of the Court:

The court found the order impugned to be arbitrary and illegal and set it aside. The 2nd Respondent was directed to initiate appropriate action against the Petitioner in conformity with principles of natural justice.

Issues: The main issue was the arbitrary blacklisting of the petitioner firm by the 2nd Respondent and the seizure of a sum of Rs.65,70,000/- by forfeiting the performance security deposits.

Ratio Decidendi: The court opined that the order impugned was passed mechanically, unilaterally, and without proper application of mind, in violation of principles of natural justice. The court also noted that the 2nd Respondent ignored the certificate issued by itself certifying the petitioner's work. The court emphasized the necessity of compliance with the principles of natural justice in cases of blacklisting.

Final Decision: The writ petition was allowed, and the order impugned was declared as arbitrary and illegal and set aside. The 2nd Respondent was directed to initiate appropriate action against the Petitioner in conformity with principles of natural justice.

ORDER :

Heard the Learned Counsel for the Petitioner, learned Government Pleader for Energy and the Learned Standing Counsel appearing on behalf of the 2nd Respondent.

2. This Writ Petition is filed to issue a Writ of Mandamus by declaring the actions of Respondent No.2 in black listing the petitioner firm by issuing Letter Ref.no. TSREDCO/SE/SPVoff Grid Systems - PV/2018-19/2019/507, dated 14.08.2019 and also in seizing a sum of Rs.65,70,000/- by forfeiting the performance security deposits of petitioner firm as arbitrary, unlawful and unconstitutional and set aside all the actions and proceedings of Respondent No.2.

3. The case of the Petitioner, in brief, is as follows:

a) The Petitioner is the proprietor of M/s.Green Power Technologies and is engaged in the business of installation of domestic and commercial solar systems. Earlier through the petitioner firm, a bidding was placed in an e-tender for supply, installation and commissioning of 1 KWp to 1000 KWp Solar PV GCRT power plants at various government buildings, in all over Telangana State for 10MW Capacity under CAPEX mode with the Respondent.no.2.

b) Accordingly, the tender was approved to the petitioner firm on 07.05.2016. Thereafter, the firm installed 98 number of 1KWP off Grid Solar spv plants in Adilabad and 44in Karimnagar Districts totaling to 142 and completed all the works.

c) After installing the said solar plants in Adilabad and Karimnagar Districts, the 2nd, Respondent has conducted an inspection and issued a vide Memo No.TSREDCO/SE/SPV Off Grid/Inspections/D.no:4614/2017-18, dated 19.02.2018 to the petitioner stating that, out of the 142 1KW Solar Systems, 96 Solar Systems are not available. The petitioner in reply letters vide no.GPT/PO/180, dated 13.08.2018 and 02.09.2018 stated that, all 69 number of 1KW Solar Plants are available in Adilabad District and the 2nd Respondent can depute Inspecting Officers to inspect all the systems.

d) On 17.09.2018, the 2nd respondent issued Memo No. TSREDCO/SE/SPVOffGrid/Inspections/D.No:5643/2017-18, deputing K. Rameshwararao, District Manager, Medak & Siddipet, V. Subrahmanyam, District Manager, Khammam and P. Peerya, Development Officer, Head Office, TSREDCO to inspect all the 96 1KWP off Grid Solar Spv Plants in coordination with the petitioner and submit the Inspection Reports by 24.09.2018.

e) Accordingly, in the month of October, 2018 the above said officers have inspected 69 number of 1KWP off Grid Solar Spv Plants in Adilabad District and some of the inspection photographs and documents were submitted to the 2nd Respondent, while they failed to submit the remaining reports.

f) On 07.01.2019, the petitioner received a second Notice vide Ref.no. TSREDCO/SE/SPV Off Grid/Inspections/2018-19/6174 issued by the 2nd Respondent stating that, 78 number of systems were not installed and subsidies were mis-utilized by the petitioner and thereby black listed the petitioner’s firm and all the performance security deposits of the petitioner which are available with 2nd Respondent were forfeited.

g) Subsequently, on 27.01.2019, the petitioner has issued a reply letter clarifying that total 59 solar systems were inspected by 2nd respondent authorities in the month of November, 2018 and the same number of systems are available as well as working in Adilabad District. However, the problem persisted only due to shifting of solar systems by beneficiaries to their neighbors, relatives and family friends and on knowing the same, the petitioner has relocated the solar systems to original beneficiaries again. The same situation arose in Karimnagar District and all 25 1KWP solar systems are available and working.

h) Thereafter, the petitioner requested the 2nd Respondent for re-inspection, as the beneficiaries are from Tribal areas and Thandas and they are shifting the solar systems without any intimation. The petitioner also requeste

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