APHC010014362019 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI [3332]

(Special Original Jurisdiction)

TUESDAY,THE TWENTY FOURTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE RAVI CHEEMALAPATI WRIT PETITION NO: 638/2019 Between:

1. M/S S.S.TRANSPORT, REP. BY ITS PARTNER, VASIREDDY KRUPAKARA RAO, S/O. SRIKRISHNAIAH, HAVING OFFICE AT SHANTHI NAGAR, OPP. HANUMAN TEMPLE, JAGGAIAHPETA, KRISHNA DISTRICT ...PETITIONER AND

1. STATE OF AP, REP. BY ITS SECRETARY, FOOD CIVIL SUPPLIES AND CONSUMER AFFAIRS DEPARTMENT, SECRETARIAT BUILDINGS, VELAGAPUDI, GUNTUR DISTRICT

2. THE COLLECTOR CS, KRISHNA DISTRICT AT MACHILIPATNAM.

3. THE TAHSILDAR, IBRAHIMPATNAM MANDAL, KRISHNA DISTRICT.

4. THE CHIEF MANAGER, SYNDICATE BANK, AMEERPET BRANCH, HYDERABAD.

5. THE COLLECTORCS, KRISHNA DISTRICT AT MACHILIPATNAM

6. THE TAHSILDAR, IBRAHIMPATNAM MANDAL, KRISHNA DISTRICT

7. THE CHIEF MANAGER, SYNDICATE BANK, AMEERPET BRANCH, HYDERABAD ...RESPONDENT(S):

Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate writ, or order or direction more particulalrly one in the nature of Writ of Mandamus declaring the action of the 2nd respondent in forfeiting the Bank Guarantee No. 13/2015 furnished by the petitioner in favor of the Government vide order in ECP No. 91/2015, dated 29-12-2018 passed by the 2nd respondent is highly illegal arbitrary and unconstitutional being violative of principles of natural justice and consequently set aside the impugned order in ECP No. 91/2015, dated 29-12- 2018 passed by the 2nd respondent and thereby direct the respondents 2 and 3 herein to release the Bank Guarantee No. 13/2015 in favour of the petitioner and pass IA NO: 1 OF 2019 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation of the impugned order in E.C.P. No. 91/2015, dated 29-12-2018 passed by the 2nd respondent and thereby direct the respondents 2 and 3 herein to release the Bank Guarantee No. 13/2015 in favour of the petitioner, pending disposal of the writ petition Counsel for the Petitioner:

1. K SRINIVAS Counsel for the Respondent(S): 1. GP FOR CIVIL SUPPLIES (AP)

The Court made the following:

ORDER Questioning the action of respondent no.2 in passing orders dated

29.12.2018 vide E.C.P.No.91 of 2015 forfeiting Bank Guarantee No.13 of 2015 furnished by the petitioner in favour of the Government.

2. The case of the petitioner, in brief, is that, on 07.07.2015, while the lorry bearing No.AP 16 TY-8513 was carrying the load of cement bags, the Vigilance and Enforcement officials intercepted the same at Ibrahimpatnam, Krishna District and seized the lorry along with cement bags and 51 bags of rice and in that connection a case in Cr.No.171 of 2015 under Section 420 of IPC and Section 7(C) of the Essential Commodities Act, 1955 was registered against the petitioner and others. That the petitioner filed W.P.No.21734 of 2015 and the Hon’ble High Court by order dated 22.07.2015 disposed of the same, directing respondent no.2 to release the lorry and the stock upon furnishing bank guarantee for an amount of Rs.10 lakhs and accordingly the bank guarantee was furnished and the lorry and stocks were released to the petitioner. It is the further case of the petitioner that as per Panchanama conducted by the Inspecting Officials , the allegations leveled against the petitioners and others is that they purchased the PDS rice from the cardholders meant for Public Distribution System and selling the same at higher rates by doing clandestine business. It is the further case of the petitioner that without considering the written arguments submitted, the respondent no.2 passed the impugned order under Section 6(A) of the EC Act ordering confiscation of 100% of the seized stock and forfeited the Bank guarantee amount of