The Court made the following:

THE HON’BLE SRI JUSTICE NYAPATHY VIJAY

WRIT PETITION No.12584 of 2024

ORDER:

1. The present Writ Petition is filed questioning the action of Respondent No.5 in issuing the Proceedings in Rc.No.35/ 2022/ Article 275(1)/ Mondemkhallu/ PVP/ DB, dated 03.06.2024 and to declare the same as illegal and arbitrary.

2. The facts in brief are as follows;

The Petitioner-firm had entered into an Agreement No.10/2022/2023/DB, dated 14.11.2022 for Construction of New Infrastructure to conversion Tribal Welfare Boys Hostel to Tribal Welfare Ashram School Boys of Mondemkhallu in Kurapam Mandal of Parvathipuram Manyam District. The time prescribed for completion of works was 18 months and the estimated cost of the contract is Rs.1000.00 lakhs. The Petitioner-firm had proceeded with the work and the progress was recorded in the Measurement Books. The value of the work executed by the Petitioner was Rs.9,40,11,976/- as on 25.03.2024, which was beyond the Tender Contract Value (TCV) of Rs.8,53,38,783/- as per the Agreement.

3. The Executive Engineers of the Department had inspected the quality of the works till the completion of the above works and Quality Control Certificates are yet to be issued. It is stated that the Executed Work Value (EWV) is Rs.6,40,68,428/- and that the amount due to the Petitioner is Rs.2,98,02,530/-. The Respondents having been satisfied with the additional work executed by the Petitioner prepared the bill, but the amounts were not released. Hence, the Petitioner-firm filed W.P.No.11360 for 2024 for release of amount due to the Petitioner as recorded in Measurement Book No.49-A (Bill Book) and for the value of the work for authorized extra quantities, supplement items as per Department’s instructions.

4. It is also stated that the Petitioner had also executed two other works for the Respondent-Department in Parvathipuram Division. As the amounts were due with regard to those works, the Petitioner filed W.P.Nos.9704 of 2023 and 9706 of 2023 respectively and this Court vide Order dated 12.07.2023 directed the Respondents to make payment for the outstanding amounts. As the amounts were not paid, the Petitioner filed C.C.No.5028 of 2023 and C.C.No.5026 of 2023 respectively and thereafter outstanding amounts were released.

5. As mentioned above, the Petitioner filed W.P.No.11360 of 2024 for recovery of Rs.2,98,02,530/- and during pendency of the said Writ Petition, a notice was issued by Respondent No.6 directing the Petitioner to speed up the work. Thereafter, the Petitioner gave a detailed reply on 02.05.2024 stating that the Petitioner had executed substantial work within 13 months beyond the Tender Contract Value and within a period of 13 months. Various other aspects were also urged in the reply notice. One more notice was issued on 01.05.2024 by Respondent No.6 similar to the earlier notice. While so, another notice was sent by Respondent No.8 on 30.04.2024 on similar lines referred above and Petitioner gave reply thereto on 07.05.2024.

6. On 10.05.2024, Respondent No.6 again issued another notice directing the Petitioner to resume work and threatening to terminate the contract. The Petitioner gave a detailed reply on 17.05.2024 reiterating their contentions as mentioned in the earlier replies. In spite of the detailed explanations given by the Petitioner, Respondent No.5 issued impugned Proceedings on 03.06.2024 terminating the Agreement No.10/2022-23/DB, dated 14.11.2022 by referring to Clauses 27.2, 27.3 and 55.2 of the Agreement forfeiting the deposits and other debts payable to Petitioner-firm. It is further stated that the Petitioner had executed the Total Value of Work at Rs.9,40,11,976/- and that Respondent No.6 has no authority to terminate the contract by invoking Clause 16-A of APDSS.

7. In the Counter-Affidavit filed by Respondent No.5 it was stated that the Agreement time ended on 13.05.2024 and the works were yet to be completed as Rs.13,04,610/- value of work is to be done b