Back
2024 Supreme(Telangana) 323
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
SUREPALLI NANDA, J.
A. Kondal Reddy and Others – Petitioners
Versus
The Telangana State Road Transport Corporation and Others – Respondents
Writ Petition No. 30271 of 2023
Decided On : 30-07-2024
Advocate Appeared:
For the Petitioner: P. Venkateswar Rao.
For the Respondent: M. Ram Mohan Reddy.
IMPORTANT POINT
The court reaffirmed that principles of natural justice must be observed in administrative actions affecting rights, requiring notice and opportunity to be heard.
Headnote:
Natural Justice - Writ Petition - Notification No. P1/359(01)/2023-CGCL - The court emphasized the necessity of adhering to principles of natural justice, ruling that the impugned notification was issued without notice or opportunity for the petitioners to be heard, thus violating their rights.
Fact of the Case:
The petitioners, hire bus owners, challenged a notification for recovery of excess payments made for HSD oil consumption, arguing it was arbitrary and violated their rights without due process.
Finding of the Court:
The court found that the notification was issued without notice or opportunity for the petitioners to contest the recovery, violating principles of natural justice and thus set it aside.
Issues: Whether the notification for recovery of excess payments violated principles of natural justice and the terms of the agreement between the parties.
Ratio Decidendi: The court held that any action adversely affecting a party must comply with principles of natural justice, including the right to be heard, especially when civil consequences are involved.
Result: The Writ Petition is allowed, and the impugned notification is set aside.
ORDER :
1. Heard Sri P.Venkateswar Rao, learned counsel appearing on behalf of the petitioners, Sri M.Ram Mohan Reddy, learned standing counsel for TSRTC appearing on behalf of respondent Nos.1, 3, 4 & 5 and learned Government Pleader for Transport appearing on behalf of respondent No. 2.
2. The petitioners approached the court seeking the prayer as under:
“.....to issue a writ or order or direction more particularly one in the nature of writ of mandamus by declaring that the action of the respondents in not paying the amount to the petitioners when less consumption of HSD oil than the eligible quota is used for their allotted buses (TS08UG 2041, TS08UG 2040, TS08UG 2726 and TS08UG 2738) and ordering recovery for the amounts earlier paid is bad, arbitrary, illegal, unjust, discriminatory and consequently direct the respondents to continue to pay the above subject payment and withdrawing recovery by setting aside Notification No. P1/359 (01)/2023-CGCL dated 21-9-2023 of the 5th respondent and pass such other order or orders.....”
3. The case of the Petitioners, in brief, as per the averments made in the affidavit filed by the Petitioners in support of the present writ petition is as under:
(a) It is the case of the petitioners that, the petitioners are the Hire Bus owners who had executed agreements with the 3rd respondent herein and operating their buses under the control of the 3rd respondent are herein in different depots on different routes as per the agreements.
(b) It is further the case of the petitioners that, as per the condition No. 6 of the agreement, in case monthly consumption exceeds the monthly quota based on the HSD KMPL fixed as per the particular type of bus, recovery will be made for the excess consumption of HSD oil at the prevailing market price of the HSD oil. In the same manner, if the consumption is less than monthly quota on the HSD KMPL the balance amount would be repaid. So some amounts were repaid to the petitioners for the reason the HSD oil consumption is less than monthly quota.
(c) The petitioners submit that the 5th respondent issued notification vide No. P1/359(01)/2023-CGCL, dated 21.09.2023 ordering recovery concerned with excess paid amount towards refund of less top-up HSD oil as per pre audit. This recovery is without notice and without giving any particulars/calculations. The said amount will be recovered from the hire bill of September, 2023 in four installments and the same shall have effect from 1st November, 2023 onwards. However, if the same is effected the petitioners shall face financial problems
(d) It is the further case of the petitioners that they have also made representations to the respondents to stop the recovery but there is no response. The respondents had interpreted the condition No. 6 of the agreement to be that where HSD oil consumed is more than monthly eligible quota then the recovery will be made but if HSD oil consumed is less than eligible quota there is no mention about repayment. But, this interpretation is arbitrary, illegal and unreasonable. Earlier, there are circulars, dated 18.08.2018 and 11.01.2016 for repayment of amount where there is less consumption of HSD oil. Hence, the present Writ Petition.
4. PERUSED THE RECORD:
(A) Impugned notification, dated 21.09.2023 vide No. P1/359(01)/2023-CGCL of the 5th respondent issued to the petitioner reads as under:
It is to inform that the Personnel Officer/Secunderabad Region has allotted Hire bus No. TS 08UG 2041 through tender Notification issued on 23.10.2019 for Allotment of City ordinary Bus under Hire Scheme to Sri Alimineti Kondal Reddy for a period of Four (04) Years from 26.02.2020 to 25.02.2024 vide ref 1st and 2nd cited.
In this connection Hire Bus Monthly Bills from the date of commencement to February 2023 was excess paid towards Refund of less top up HSD Oil at Depot after pre-audit to you and the same amount may be recoverable in next month Hire bill (i.e., September-2023) onwards in Four (04) Instalments of Rs
