THE HONOURABLE SMT JUSTICE T.MADHAVI DEVI W.P.NO. 15601 OF 2025

ORDER:

In this writ petition, the petitioner is seeking a writ of mandamus declaring the action of the respondents in terminating the contract issued to the petitioner vide Proceedings No.PDS/Movt5(1)/Stage-II, dated 16.04.2025, for transportation of essential commodities to the Fair Price Shop points for the years 2023-24 and 2024-25, without valid reasons and in not settling the pending bills from February, 2025, as illegal, arbitrary and unjust and consequently to set aside the termination order of the contract and to direct the respondents to continue to the award work to the petitioner as per the terms of contract and release the amounts withheld towards pending bills and to pass such other order or orders in the interest of justice.

2. Brief facts leading to the filing of the present writ petition are that the petitioner was working as a regular contractor for the transportation of PDS rice to all the villagers for more than 3½ decades. It is submitted that the petitioner had participated in the tender process pursuant to the Tender Notice No.PDS/ Movt.5/Stage-II, Tenders/2023-25, dated

23.01.2024 and the tender of the petitioner was accepted and he had been awarded the work of transportation of essential commodities to fair price shops and MDM Rice up to School Points and Anganwadi Centres under Stage-II from Bhuvanagir MLS Point to fair price shops of attached Mandals for the years 2023-24 and 2024-25 vide Proceedings No.PDS/Movt.5/Stage.II Tenders/2023-25, dated 13.09.2024. According to the petitioner, he has successfully completed the contract work for the year 2023-24 and also for 2024-2025 till February, 2025. It is submitted that on 05.02.2025, the petitioner was given a Truck Chit to deliver PDS under Stage-II for Truck No.AP 05X 7317, with a quantity of 486 bags to be delivered to fair price shops at Veera Reddypally, Vaasalamarri, Dayyalabanda and Thirumalapuram. Since the said vehicle was a heavy vehicle and cannot move freely in the above said villages, with the permission of Sri.K.Raju, Assistant Grade-III of the Civil Supplies Corporation Limited and incharge of the godown and responsible for the distribution of essential commodities to the fair price shops, the petitioner has shifted the 470 bags to be delivered, to another Truck bearing No. AP 13X 0157 and only 16 bags from the godown to be delivered to the Tirumalapuram Village fair price shop were not picked up and when the petitioner’s vehicle was about to move, the Vigilance and Enforcement Team, OSD, ETF, TGSCSCL, Hyderabad, inspected the MLS Point Bhongir and conducted a physical verification of the PDS stock and found that only 470 bags loaded on the Truck bearing No.AP 13X 0157 and that there was a shortage of 16 bags to be loaded and therefore, they came to the conclusion that the petitioner was involved in illegality and irregularity and thereafter recommended blacklisting of the petitioner vide report dated 29.02.2025. Thereafter, the respondent No.3 issued a show cause notice dated 21.03.2025 and without considering the explanation submitted by the petitioner, issued the termination order of contract dated 16.04.2025. Challenging the same, the present writ petition has been filed.

3. Learned counsel for the petitioner has reiterated the submissions made in the writ affidavit and has also drawn the attention of this Court to the explanation given by him to the show cause notice and also to the documents filed along with the reply affidavit to demonstrate that both the vehicles bearing Nos.AP 05X 7317 and AP 13X 0157 are authorized to be used for the petitioner for transportation of commodities. He submitted that since the vehicle for which the Truck Chit was issued is a heavy vehicle and the petitioner used another permitted vehicle for transportation with the permission of Assistant Grade-III, that there was no illegality or irregularity committed by him. Therefore, according to hi