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2024 Supreme(Online)(Tel) 40088
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
SUREPALLI NANDA, J
M/s. R.V.R.Sai Pranav – Appellant
Versus
The Singareni Collieries Company Limited – Respondent
W.P.No.22818 OF 2024
For the Appellants/Petitioners: Sri O.Manohar Reddy, Sri Laxmikanth Reddy Desai
For the Respondents: Sri E.Madan Mohan Rao, Sri P.Sri Harsha Reddy
The court ruled that respondents must adhere to contract terms regarding payment adjustments and mandated a fair dispute resolution process in compliance with natural justice.
Headnote:(A) Writ of Mandamus - Reporting mechanism and mandate for performance measurement. The petitioner challenged the respondents' actions in reducing payments based on 3D Scanner Data without justified rationale. The failure to adhere to reconciliation terms in the contract imposed unfair penalties, violating principles of natural justice. The court emphasized the need for compliance with Clause 1.14 regarding dispute resolution, acknowledging the petitioner's ongoing grievances about recovery claims. Resultantly, the respondents were directed to resolve the issues following the prescribed protocols. (Paras 7-21)
(B) Contract Law - Principles of natural justice and compliance with contract terms. The court underscored the importance of following contractual provisions, particularly regarding adjustments for unilateral deductions, reinforcing the need for transparency in the billing process and adherence to prescribed reconciliation methods. The absence of justified reductions violates contractual commitments and procedural fairness. (Paras 10, 11, 19-20)
| Table of Content |
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| 1. petitioner seeks writ for unjustified deductions based on goaf. (Para 2 , 6) |
| 2. respondent's deductions based on contract clauses. (Para 4 , 5) |
ORDER:
Heard Sri O.Manohar Reddy, learned senior designated counsel representing Sri Laxmikanth Reddy Desai, learned counsel appearing on behalf of the petitioner on record and Sri E.Madan Mohan Rao, learned senior designated counsel representing Sri P.Sri Harsha Reddy, learned standing counsel for SCCL appearing on behalf of the respondents on record.
2. The Petitioner approached the Court seeking prayer as under :
“…pleased to issue a writ order or a direction more particularly one in the nature of a writ of Mandamus declaring the action of the Respondents in reducing the 3D Scanner Data quantity recorded and executed by the Petitioner in the monthly bills and making payment of bill amounts on reduced quantity without there being any justification and right under the contract as unconscionable illegal, arbitrary, unfair, unreasonable unconstitutional and in violation of principles of natural justice and the express terms of the order dated 19 09.2020 and consequently to direct the Respondents to revise the monthly bills as per the 3D Laser Scanner Data surveyed quantity and accordingly to make payment to the Petitioner to set aside the Letters/ Communications vide Ref Nos MMR/KKOCP/SUR35/2024/3115 dated 09.07.2024 and MMR/KKOCP/SUR35/2024/723 dated 13/02/2024 issued by Respondent No. 3 and pass...” s PERUSED THE RECORD:-
3. The impugned letter/ communication, dated 13.02.2024 issued to the petitioner by the 3rd respondent is extracted hereunder:
Vide above cited subject, the following calculation sheet photo copies of Excavation and HSD oil penalties/adjustments of Reconciliation are handing over to M/s.RVR-SAIPRANAV-RNC(JV) representative for your reference.
1) Excavation penalties/adjustments calculation sheet.
2) HSD oil penalties/adjustments calculation sheet.
4. The impugned letter/ communication vide Ref No.MMR/ KKOCP/ SUR-35/ 2024/ 3115, dated 09.07.2024 issued to the petitioner by the 3rd respondent is extracted hereunder:
Vide order no.7600008478, dated 09.10.2020 you had commenced the OB removal works on 01.10.2020 for a quantity of 885.803LBCM of OB and also for additional works with conventional equipment at KKOCP mine, Mandamarri area for a period of 48 months. At present your are in 4th year of operations.
After completion of 1st, 2nd , & 3rd years as per terms and conditions of the order, the project authorities have obtained approval from competent authority vide letter no.CRP/CMC/E1119O0421/482/482, dated 31.01.2024 for reconciliation of 1st year, 2nd year & 3rd year operated lead for executed OBR quantity and for revised projections for balance period of the contract. The revised excavation rates and diesel factors were informed to you vide letter no.MMR/KKOCP/SUR-35/2024/679, dated 08.02.2024.
Subsequently, from January 2024 RA Bills, payments/adjustments are made considering the approved revised excavation rate/BCM & supply of diesel in liters/BCM for 1st, 2nd , 3rd & 4th year quantities which was informed to you vide MMR/KKOCP/SUR-35/2024/679, dated 08.02.2024. In the mean time, you have requested/represented to C&MD vide letters dated 19.01.2024 & 12.02.2024 for thorough review & re-verification of leads, calculations and the entire reconciliation process. Accordingly, a committee was constituted to verify the reconciliation. The above committee has submitted the report after verification and the same was approved by the competent authority.
As per the committee report it is to inform that the Reconciliation values such as excavation rates/diesel factors which were informed to you vide letter no.MMR/KKOCP/SUR- 32/2024/723, dated 13.02.2024 stands valid and as such there is no variation.
Hence, the recoveries calculation sheet issued to you vide letter no.MMR/KKOCP/SUR-32/2024/723, dated 13.02.2024 regarding excavation and diesel penalties after reconciliatio
