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APHC010552292023

IN THE HIGH COURT OF ANDHRA PRADESH

AT AMARAVATI

(Special Original Jurisdiction)

[3333]

THURSDAY,THE EIGHTH DAY OF JANUARY

TWO THOUSAND AND TWENTY SIX

PRESENT

THE HONOURABLE SMT JUSTICE V.SUJATHA

WRIT PETITION NO: 28711/2023

Between:

1. KELLER GROUND ENGINEERING INDIA PRIVATE LIMITED,, A

COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956

AND HAVING ITS REGISTERED OFFICE AT 7TH FLOOR, EASTERN

WING, CENTENNIAL SQU ARE, 6A - DR. AMBEDKAR ROAD,

KODAMBAKKAM CHENNAI, TAMIL NADU, 600024. REPRESENTED

BY ITS AUTHORIZED REPRESENTATIVE, MR. M. GANESH KUMAR.

...PETITIONER

AND

1. STATE OF ANDHRA PRADESH, REPRESENTED BY ITS PRINCIPAL

SECRETARY, WATER RESOURCES DEPARTMENT, A.P.

SECRETARIAT VELAGAPUDI, GUNTUR DISTRICT.

2. THE CHIEF ENGINEER, POLAVARAM IRRIGATION PROJECT,

DOWLAISWARAM, EAST GODAVARI DISTRICT.

3. STATE OF ANDHRA PRADESH, REPRESENTED BY ITS PRINCIPAL

SECRETARY, FINANCE DEPARTMENT, A.P. SECRETARIAT,

VELAGAPUDI, GUNTUR DISTRICT

4. TRANSSTROY JSC EC UES JV, A COMPANY INCORPORATED

UNDER THE COMPANIES ACT, 1956 HAVING ITS OFFICE AT PLOT

NO. 201, 202 A AND 202 B, GUTTALA, BEGUMPET, KAVERI HILLS,

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W.P.No.28711 of 2023

HYDERABAD REPRESENTED BY ITS LIQUIDATOR DR.

GOVINDRAJULA VENKAT A NARASIMHA RAO

...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 topleased to issue a writ, direction, or order more so in the nature of a

writ of mandamus- (a)declaring that the action of Respondent 1, the Water

Resources Department of the State of Andhra Pradesh (WRD) and

Respondent 2, the Chief Engineer, WRD, of withholding the amount due and

payable to the Petitioner towards the jet grouting, ECPT and vibro compaction

works completed at the Polavaram Irrigation Project is manifestly arbitrary,

unlawful and violates the Petitioner's rights under Articles 14 and 19 of the

Constitution of India, 1950, and consequently (b) direct the State of Andhra

Pradesh to remit amounts to the tune of INR 52,41,49,107/- (Rupees Fifty-

Two Crores Forty-One Lakh Forty-Nine Thousand One Hundred and Seven

only) (including GST) which are due and payable to the Petitioner along with

interest,

IA NO: 1 OF 2023

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

pleased to direct the Respondents Nos. 1, 2 and 3 to deposit the unlawfully

withheld amount of INR 52,41,49,107/- (Rupees Fifty-Two Crores Forty-One

Lakh Forty-Nine Thousand One Hundred and Seven only) due and payable to

the Petitioner with this Hon'ble Court and permit the Petitioner to withdraw the

aforesaid amount of INR 52,41,49,107/- (Rupees Fifty-Two Crores Forty-One

Lakh Forty-Nine Thousand One Hundred and Seven only) deposited by the

Respondents

Counsel for the Petitioner:

1. SAI SANJAY SURANENI

Counsel for the Respondent(S):

1. GP FOR FINANCE PLANNING

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W.P.No.28711 of 2023

2. GP FOR IRRIGATION COMM AREA DEV

The Court made the following:

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W.P.No.28711 of 2023

ORDER:

This Writ Petition came to be filed under Article 226 of the Constitution of

India seeking the following relief:-

“….to issue a writ, direction, or order more so in the nature of a writ of

mandamus- (a)declaring that the action of Respondent 1, the Water

Resources Department of the State of Andhra Pradesh (WRD) and

Respondent 2, the Chief Engineer, WRD, of withholding the amount due

and payable to the Petitioner towards the jet grouting, ECPT and vibro

compaction works completed at the Polavaram Irrigation Project is

manifestly arbitrary, unlawful and violates the Petitioner's rights under

Articles 14 and 19 of the Constitution of India, 1950, and consequently (b)

direct the State of Andhra Pradesh to remit amounts to the tune of INR

52,41,49,107/- (Rupees Fifty-Two Crores Forty-One Lakh Forty-Nine

Thousand One Hundred and Seven only) (including GST) which are due

and payable to the Petitioner along with interest….”

2. The petitioner herein is a company incorporated under the provisions of

the Companies Act, 1956 and is engaged in the business of ground

improvement, which is a critical part of all construction projects. It is a well

known fact that Polavaram Irrigation Project is a multi-purpose public works

project that provides irrigation to the highland areas of Visakhapatnam, East

Godavari, West Godavari and Krishna districts. Polvaram Irrigation Project

was declared as a national project under Section 90 of the Andhra Pradesh

State Reorganization Act, 2014 and subsequently, the Polavaram Project

Authority was constituted by the Central Government vide gazette notification

dated 28.05.2014. Vide office memorandum F.No.1(2)/PF-1/2014, dated

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W.P.No.28711 of 2023

30.09.2016, the Government of India decided that the State of Andhra

Pradesh would execute all irrigation related construction works of the

Polavaram Irrigation Project on its behalf. The 1

st

respondent is the

responsible authority for the construction and development of irrigation

projects in the State of Andhra Pradesh such as the Polavaram Irrigation

Project and the 2

nd

respondent herein is the Chief Engineer for the Polavaram

Irrigation Project.

3. On 02.03.2013, the 2

nd

respondent entered into an Engineer,

Procurement and Construction agreement with the 4

th

respondent –

Transstroy JSC EC UES (JV), for carrying out construction works at the

Polavaram Irrigation Project which includes, surveying, investigation, sub-soil

exploration, designs, engineering, estimates and construction of the Earth

dams for Gap-I & Gap-III, Earth-cum-rock fill dam for Gap-II, spill channel and

excavation of foundations for a 960 MW hydroelectric power house including

approach channel, intake structure etc. A supplementary agreement was also

executed between the respondent authorities and the 4

th

respondent on

07.10.2016. In a meeting held on 08.06.2017 and 09.06.2017, the Dam

Designs Review Panel decided to carryout geotechnical investigations that are

necessary for the design of the Earth-cum-Rock Fill dam and to use jet

grouting for the cut-offs at the upstream and downstream coffer dams.

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W.P.No.28711 of 2023

4. Subsequently, the 4

th

respondent sub-contracted part of the scope of

work to the petitioner herein through the following work orders:

i. Work Order dated 03.06.2017 for Electronic Cone

Penetration Tests for an Earth-cum-Rock Fill dam base and

along the axis of upstream and downstream cofferdams for

the Polavaram Irrigation Project.

ii. Work Order dated 11.07.2017 for execution of jet grouting

works for cut-off at the upstream and downstream

cofferdams for the Polavaram Irrigation Project.

iii. Work orders dated 27.09.2017 and 03.02.2018 for carrying

out ground improvement using vibro-compaction for the

proposed Earth-cum-Rock Fill dam foundation at the

Polavaram Irrigation Project.

5. As the 4

th

respondent was in financial distress due to pending

insolvency proceedings, in order to ensure that the work undertaken by the

sub-contractors of the 4

th

respondent is not hindered, the State of Andhra

Pradesh sanctioned a special imprest amount (Rs.170,00,00,000/-) so that the

sub-contractors of the 4

th

respondent could be paid directly by the

respondents. Subsequently, vide Minutes of Meeting dated 12.06.2017, the 1

st

respondent instructed the 4

th

respondent and the petitioner herein to

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W.P.No.28711 of 2023

commence the work immediately. Accordingly, the petitioner commenced the

works as per the abovementioned work orders by incurring an initial

expenditure of Rs.15,00,00,000/- and Rs.13,79,00,000/- towards mobilization

of the requisite resources towards jet grouting work and the vibro-compaction

work.

6. Thereafter, the petitioner has completed all the works entrusted to it

through the aforementioned work orders and the same was also noted in the

Minutes of Meetings dated 29.10.2018, recorded in the review meeting

conducted by the respondent authorities. Subsequently, in addition to the

special imprest amount sanctioned by the State of Andhra Pradesh of

Rs.170,00,00,000/-, the 1

st

respondent also recovered an amount of

Rs.302,10,00,000/- from the 4

th

respondent‟s running account bills and

encashed all the bank guarantees furnished by the 4

th

respondent to a tune of

Rs.689,83,00,000/-. In spite of the same, the 1

st

respondent only paid

Rs.2,00,00,000/- for the vibro-compaction work and Rs.71,26,62,284/- for the

jet grouting work completed by the petitioner, by withholding the balance

amount of Rs.52,41,49,107/- towards the work of Electronic Cone Penetration

Tests, on the ground that the rates for undertaking such work, which had

originally been submitted to the 1

st

respondent in the year 2017, are not

approved by the Board of Chief Engineers.

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W.P.No.28711 of 2023

7. On 27.08.2019, the Board of Chief Engineers rejected the rate analysis

submitted by the 2

nd

respondent and directed the 3

rd

respondent to take a

decision on the payment to be made to the petitioner in accordance with basic

parameters and the payment schedule incorporated in the Engineer,

Procurement and Construction agreement dated 02.03.2013. As per the said

decision of the Board of Chief Engineers, an amount of Rs.45,90,00,000/- is

payable by the 1

st

respondent towards the jet grouting work. Subsequently, the

2

nd

respondent, vide letter dated 29.12.2020 acknowledged the role of

subcontractors, including the petitioner in the development of Polavaram

Irrigation Project and recommended that an amount of Rs.45,90,00,000/- be

paid to the petitioner. Though the Board of Chief Engineers finalized the

amount to be paid to the petitioner towards jet grouting work on 27.08.2019,

the respondent authorities, vide letters dated 03.12.2021, 06.01.2022 and

06.05.2022 revised the rates applicable towards the jet grouting work, but,

however, no payment was made to the petitioner subsequently.

8. The letter dated 29.12.2020 addressed by the 2

nd

respondent was

challenged by „M/s Ratna Infrastructure Projects Private Limited‟ in

W.P.No.701 of 2021 before this Court, wherein, initially this Court was pleased

to pass an interim order on 07.01.2021 directing the 1

st

respondent not to

disburse any amount from the account of the 4

th

respondent and has granted

stay on all further proceedings pursuant to the letter dated 29.12.2020

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W.P.No.28711 of 2023

addressed by the 2

nd

respondent. In the said writ petition, the petitioner having

got impleaded as respondent No.10 and filed a vacate stay petition.

Thereafter, this Court, vide interim order dated 17.07.2023, modified the

earlier interim order dated 07.01.2021 by directing respondent Nos.1 and 2

herein to consider the claim and process the admitted amount of

Rs.45,90,00,000/- in favour of the petitioner herein within a period of six (6)

weeks. Consequently, the petitioner, duly enclosing the order copy dated

17.07.2023, addressed a letter dated 07.08.2023 to respondent Nos.1 to 3

with a request to release the amounts payable to the petitioner. As the

amounts payable to the petitioner were not released by the respondent

authorities, the present writ petition is filed.

9. The 2

nd

respondent filed a detailed counter affidavit and also an

additional counter affidavit. It is averred in the counter affidavit that the present

writ petition is not maintainable as the respondent authorities have not entered

into any work agreement with the petitioner and that there is no contractual

relationship between the petitioner and the respondent authorities.

Furthermore, it is stated that the agreement entered into by the respondent

authorities and the 4

th

respondent in the year 2013 was terminated vide

Lr.No.CE/PIPHWunit/Polavaram/DCE/-II/OT-1/AEE-1/529m, dated 30.10.2019

due to slow work progress and the petitioner being subcontractor of the 4

th

respondent would not have any right to claim the amounts for the alleged

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W.P.No.28711 of 2023

works completed by the petitioner in the Polavaram Irrigation Project. It is

further stated in the counter affidavit that though the petitioner is a

subcontractor of the 4

th

respondent, the respondent authorities do not have

any kind of relationship with the petitioner and that the 1

st

respondent has no

knowledge about the agreements that took place between the petitioner and

the 4

th

respondent.

10. It is further stated that during the course of execution of the work by the

4

th

respondent, due to cash flow problems, the State of Andhra Pradesh has

sanctioned an amount of Rs.170,00,00,000/- as a special imprest amount for

arranging payments directly to the parties concerned subject to recovering the

same from the subsequent RA bills of the 4

th

respondent. Subsequently, on a

request made by the 4

th

respondent, a total amount of Rs.446,32,00,000/- has

been released to various agencies and as a part of the same, the petitioner

received an amount of Rs.73,20,24,786/-. It is further averred that the

Assistant Commissioner of Central Tax, Guntur CGST Division, Guntur

communicated Form GST DRC -13 notice dated 05.09.2023 to the 2

nd

respondent informing that the 4

th

respondent is a defaulter of GST with

demand order No.OIO No.02/2020-21-GST in C.No.V/GGST/15/04/2020-Adj,

dated 30.06.2020, Reference no of recovery C.No.V/04/14/2019 -ARC,

period:July 2017-18 to March, 2019. It is further averred in the counter

affidavit that any disputes in the amounts payable to the petitioner have to be

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W.P.No.28711 of 2023

sorted out by the petitioner with the 4

th

respondent but should not have filed

the present writ petition against the respondent authorities as Water

Resources Department is not responsible for the claim of the petitioner. As

such, requested to dismiss the writ petition.

11. In reply to the counter affidavit filed by respondent No.2, the petitioner

filed a reply affidavit stating that it entered into agreement with the 4

th

respondent for executing the works as per the work orders (mentioned in

paragraph No.4) with the knowledge and approval of the 1

st

respondent. As

the 4

th

respondent was under financial distress, the State of Andhra Pradesh

sanctioned a special imprest amount in order to enable the sub-contractors

like the petitioner to work without interruption and in order to receive payments

directly from the Government. It is further averred that the 1

st

respondent

repeatedly gave directions to the petitioner directly with regard to

commencement and progress of work and accordingly, vide Minutes of

Meeting dated 12.06.2017 and in few subsequent review meetings held by the

Department; the petitioner was also assured of payment of the amount

payable for the work executed by the petitioner. With regard to the contention

of the respondents that the petitioner need not be paid any amount due to

closure of imprest amount, the petitioner contended that pursuant to sanction

of Rs.170,00,00,000/- by the State of Andhra Pradesh towards imprest

amount, the Water Resources Department recovered an amount of

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W.P.No.28711 of 2023

Rs.302,10,00,000/- from the 4

th

respondent‟s running account bills and

encashed all bank guarantees furnished by the 4

th

respondent to a tune of

Rs.689,83,00,000/-. Vide its letter dated 29.12.2020, the Water Resources

Department stated that an amount of Rs.842,03,00,000/- was available with it

against the assets of the 4

th

respondent and in the very same letter, the

department proposed to pay an amount of Rs.45,90,00,000/- to the petitioner

towards completion of jet grouting work. Further, the petitioner reiterated the

facts pertaining to filing of W.P.No.701 of 2021 by a similarly situated sub-

contractor and the modified interim order dated 17.07.2023, which was

already discussed hereinabove. With regard to the notice issued by the

Assistant Commissioner of Central Tax, Guntur CGST Division, Guntur as

averred in the counter affidavit, the petitioner states that any such purported

liability faced by the Water Resources Department towards any alleged unpaid

dues under the Central Goods and Services Act, 2017 cannot absolve the

liability of payment on the part of the respondent‟s department to the

petitioner.

12. Heard Sri. Gokul Holani, learned counsel appearing on behalf of Sri. Sai

Sanjay Suraneni, learned counsel for the petitioner on record and learned

Government Pleader for Irrigation, assisted by learned Assistant Government

Pleader for Irrigation.

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W.P.No.28711 of 2023

13. Sri.Gokul Holani, learned counsel appearing for the petitioner, during

the course of arguments, reiterated the entire facts that led to filing of the

present writ petition and further contended that the 4

th

respondent sub-

contracted a portion of the works pertaining to development of Polvaram

Irrigation Project to the petitioner herein by issuing work orders (mentioned in

paragraph No.4). Subsequently, due to financial distress of the 4

th

respondent,

with a view to ensure that the works executed by the sub-contractors are not

hindered, the State of Andhra Pradesh sanctioned a special imprest amount of

Rs.170,00,00,000/- to facilitate direct payment to the sub-contractors of the 4

th

respondent. Thereafter, the petitioner has commenced the works allotted to it

as per the instructions of the 2

nd

respondent and by October, 2018, the

petitioner completed all the works entrusted to it under the aforementioned

work orders, which fact was also recorded in the Minutes of Meetings dated

29.10.2018 during a review meeting conducted by the respondent authorities.

Learned counsel strenuously contended that though the authorities recovered

an amount of Rs.302,10,00,000/- from the running account bills of the 4

th

respondent and further encashed bank guarantees furnished by the 4

th

respondent, apart from recovering the special imprest amount of

Rs.170,00,00,000/-, the respondent authorities paid only Rs.2,00,00,000/-

towards vibro-compaction works and Rs.71,26,62,284/- towards jet grouting

14

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W.P.No.28711 of 2023

works executed by the petitioner, but has withheld an amount of

Rs.52,41,49,107/- payable towards Electronic Cone Penetration Tests.

14. Learned counsel, while referring to a letter addressed by the 2

nd

respondent to the 1

st

respondent on 29.12.2020 submitted that an amount of

Rs.45,90,00,000/- was admitted to be payable to the petitioner towards jet

grouting works. Further, when the said letter was challenged by M/s. Ratna

Infrastructure Projects Private Limited in W.P. No.701 of 2021 before this

Court, initially, this Court was pleased to pass an interim order dated

07.01.2021 directing the 1

st

respondent not to disburse any amount from the

account of the 4

th

respondent and stayed all further proceedings pursuant to

the said letter. However, subsequently, the petitioner herein was impleaded as

respondent No.10 in the said writ petition and filed a petition seeking vacating

of the stay. Thereafter, by an order dated 17.07.2023, this Court was pleased

to modify the earlier order and directed respondent Nos.1 and 2 to consider

the claim and process the admitted amount of Rs.45,90,00,000/- in favour of

the petitioner within a period of six weeks. Though the petitioner addressed a

letter dated 07.08.2023 to respondent Nos.1 to 3, enclosing a copy of the said

order and requesting release of the amounts due, the respondent authorities

failed to release the admitted dues. Learned counsel for the petitioner sought

attention of this Court to a judgment dated 03.07.2024 of this Court in

W.P.No.23091 of 2023, which was filed by the petitioner herein against the

15

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W.P.No.28711 of 2023

respondent Department aggrieved by its action in withholding an amount of

Rs.15,64,50,743/- due and payable to the petitioner towards the Vibro

Compaction works completed by the petitioner at Polavaram Irrigation Project.

By way of the said judgment, this Court has directed the respondent

authorities to release the balance amount of Rs.7,82,27,371/- to the petitioner

within a period of three (3) months.

15. With regard to the averments made by the 2

nd

respondent in the counter

affidavit and the additional counter affidavit, learned counsel contended that

though the petitioner is a subcontractor of the 4

th

respondent and though it is

an undisputed fact that the 1

st

respondent entered into an agreement in the

year 2013 with the 4

th

respondent, the petitioner was directly instructed by the

1

st

respondent with regard to progress of work and assured that the petitioner

would be paid the amounts for the works executed by it which is also a part of

the Minutes of Meeting recorded on 12.06.2017, 11.12.2017, 29.01.2018,

19.02.2018, 09.04.2018, 13.08.2018, 20.08.2018, 29.10.2018 and others. In

such a case, it cannot be contended that the respondent authorities do not

have any relationship directly with the petitioner.

16. Learned counsel further contended that though the imprest amount to a

tune of Rs.170,00,00,000/- sanctioned by the State of Andhra Pradesh has

purportedly been closed, the same does not preclude the respondent

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W.P.No.28711 of 2023

authorities from releasing the amount payable to the petitioner despite

recovering an amount of Rs.302,10,00,000/- from the running account bills of

the 4

th

respondent and encashing all the bank guarantees furnished by the 4

th

respondent. When the 2

nd

respondent, vide letter dated 29.12.2020

recommended for payment of Rs.45,90,00,000/- to the petitioner towards the

jet grouting work out of a designated amount of Rs.95,83,20,000/- which has

to be adjusted proportionately among other sub-contractors, the respondent

authorities, on one pretext or the other, have been postponing payment of

such admitted amounts. Though the agreement dated 02.03.2013 entered

between Water Resources Department and the 4

th

respondent was terminated

by the Government vide proceedings dated 30.10.2019 it cannot be stated

that the petitioner need not be paid the amount for completion of Electronic

Cone Penetration Tests for an Earth-cum-Rock Fill dam base. Having

permitted the petitioner to complete the works in the Polavaram Irrigation

Project, the respondent authorities are liable to pay the petitioner for the work

completed by it for Electronic Cone Penetration Tests for an Earth-cum-Rock

Fill dam base. Stating thus, learned counsel sought for a direction to the

respondent authorities to pay the amounts payable to the petitioner.

17. On the other hand, learned Government Pleader for Irrigation reiterated

the contents of the counter affidavit and as well as the additional counter

affidavit filed by the 2

nd

respondent. He further contends that when the

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W.P.No.28711 of 2023

Engineer, Procurement and Construction agreement was between the Water

Resources Department and the 4

th

respondent on 02.03.2013, the petitioner

being a subcontractor of the 4

th

respondent and having no direct relationship

with the Water Resources Department cannot claim that the department is

liable to pay the amounts as claimed by the petitioner. Further, when the

agreement dated 02.03.2013 entered between the Water Resources

Department and the 4

th

respondent itself is not in existence and was

terminated way back in the year 2019 vide termination proceedings dated

30.10.2019 due to slow work progress, paying the amounts to the petitioner

for the work completed by it as per the agreement entered with the 4

th

respondent would not arise. Thus, learned Government Pleader for Irrigation

requested this Court to dismiss the writ petition.

18. Perused the entire material available on record.

19. It is an undisputed fact that the petitioner is a leading specialist in the

business of ground improvement works and plays a crucial role in all

construction projects. In the year 2013, the Water Resources Department

entered into an Engineer, Procurement and Construction agreement with the

4

th

respondent to carryout various constructions in the Polavaram Irrigation

Project. In the year 2017, under three different work orders (as mentioned

supra), the 4

th

respondent subcontracted the petitioner herein for execution of

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W.P.No.28711 of 2023

few specific works and subsequently, to ensure that the work being executed

by the sub-contractors of the 4

th

respondent shall not be hindered on account

of issues pertaining to cash flow, vide Minutes of Meeting dated 13.03.2017,

the State of Andhra Pradesh sanctioned a special imprest amount.

20. On 12.06.2017, a virtual review meeting was conducted for Polavaram

Irrigation Project and on a perusal of its Minutes, it can be seen at Sl.No.5 that

the 1

st

respondent herein has directly instructed the petitioner herein to

commence the work immediately and that day-to-day schedule has to be

presented before the Hon‟ble Chief Minister in the review meetings. As per the

said instructions, the petitioner commenced the work and by October, 2018,

the petitioner has completed all the works entrusted to it. Till date, the Water

Resources Department has paid Rs.2,00,00,000/- and Rs.71,26,62,284/- only

for the two works completed as per the work orders dated 11.07.2017,

27.09.2017 and 03.02.2018, but, the petitioner was not paid the amount

payable to it for completing the work of Electronic Cone Penetration Tests for

an Earth-cum-Rock Fill dam base, on the ground that the rates submitted by

the Water Resources Department were not approved by the Board of Chief

Engineers.

21. The 2

nd

respondent, in a letter dated 29.12.2020 addressed to the

Special Chief Secretary to Government, Water Resources Department ,

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W.P.No.28711 of 2023

discussed to settle the accounts of the 4

th

respondent. The entire case of the

petitioner rests on the said letter dated 29.12.2020 as observed earlier. A

perusal of the said letter would go to show that the Superintending Engineer

made a request to obtain orders of the Government for filing appropriate claim

in National Company Law Tribunal for securing the penal amount of

Rs.269,29,00,000/- to be levied against the 4

th

respondent. The

Superintending Engineer reported that after recovering departmental liabilities

amounting to Rs.711.63 crores from the assets of the 4

th

respondent worth

Rs.742.97 crores, an amount of Rs.31.34 crores would be available with the

Department. In addition to the said amount, it was stated that Rs.99.06 crores

have to be adjusted and in total, the department will be holding Rs.130.40

crores of the 4

th

respondent which was proposed to be adjusted in the

following manner:

“As frequent reminders are received from the German

Embassy and ministry of commerce and industry, GOI to the

Government of Andhra Pradesh to finalize the accounts of M/s.

Bauer. An amount of Rs.56.51 Crs shall be paid directly to M/s.

Bauer – L&T (JV) which is due from M/s. Transstroy JSC EC UES

(JV) from the balance amount of Rs.130.40 Crs of M/s. Transstroy

JSC EC UES (JV) assets available with the Department.

After completion of payment to M/s. Bauer- L&T (JV) dues of

Rs.56.51 Crs there will be a balance amount of Rs.73.89 Crs

(130.40-56.51) of M/s Transstroy JSC EC UES (JV) assets available

20

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W.P.No.28711 of 2023

with the Department. Small vendors and suppliers are also

significantly contributed in the work of Polavaram Irrigation Project,

an amount of Rs.23.958 Crs (List enclosed – Annexure – II) Shall be

paid directly from the balance amount of Rs.73.89 Crs.

After payment of dues of Small vendors and suppliers from the

assets of M/s. Transstroy JSC EC UES (JV) available with the

Department, there will be a balance amount of Rs.49.932 Crs (73.89

– 23.958) will be available with the Department.

The balance amount Rs.49.932 Crs will be available as assets

of M/s. Transstroy JSC EC UES (JV) with the Department. In

addition an amount of Rs.45.90 Crs will add to the assets of M/s.

Transstroy JSC EC UES (JV) after finalization of rate analysis of Jet

grouting. Hence a total amount of Rs.95.832 Crs (49.932+45.90)

shall be adjusted proportionately between M/s. Thriveni Earth

Movers Pvt Ltd, M/s. Geovale Services and M/s. Keller India Ltd.

Orders required from the competent authority for finalization of

accoutns of M/s. Transstroy JSC EC UES (JV), and to resolve the

issue of payments to M/s. Bauer – L&T (JV) and such other

vendors/contractors.

Further it is to submit that M/s Bauer and M/s Keller India

Limited are expert agencies in ground improvement works and they

are executing the works in Polavaram head works like Stone

columns, vibro compaction and deep soil mixing still they are

contributing the project and regularization of payment to them will

help in smooth progress of works without financial constraints to

these firms.”

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W.P.No.28711 of 2023

22. It can be seen from the above extracted portion of the letter addressed

by the 2

nd

respondent that the role of the petitioner herein in ground

improvement works in Polavaram Irrigation Project was recognized and out of

the remaining amount available with the department, the 2

nd

respondent

recommended the Government to pay Rs.45,90,00,000/- crores to the

petitioner herein. Admittedly, the Engineer, Procurement and Construction

agreement dated 02.03.2013 executed between the Water Resources

Department and the 4

th

respondent came to an end in the year 2019 vide

Lr.No.CE/PIPHWunit/Polavaram/DCE/-II/OT-1/AEE-1/529m, dated 30.10.2019

and the aforementioned letter of the 2

nd

respondent was addressed in the year

2020. In such a case, the arguments of learned Government Pleader for

Irrigation that the Government need not pay any amount to the petitioner as

the 2013 agreement itself was terminated in the year 2019, cannot be

sustained. Even after termination of the agreement between the department

and the 4

th

respondent in the year 2019, the 2

nd

respondent recommended the

Government to make payments to the petitioner, as extracted above, in the

year 2020, by which it can be inferred that the respondent authorities have

admitted/recognized that the petitioner has completed the work allocated to it.

23. It has to be noted that the 2

nd

respondent, in the letter dated

29.12.2020, though has recommended that the petitioner shall be paid an

amount of Rs.45.90 crores, subjected the same to „finalization of rate analysis

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W.P.No.28711 of 2023

for Jet Grouting‟. On 27.08.2019, the Board of Chief Engineers rejected the

rate analysis submitted by the 2

nd

respondent and directed the 3

rd

respondent

to decide on the payment to be made to the petitioner in accordance with

basic parameters and the payment schedule incorporated in the Engineer,

Procurement and Construction agreement dated 02.03.2013. As per the said

decision of the Board of Chief Engineers, an amount of Rs.45,90,00,000/- is

payable by the 1

st

respondent towards the jet grouting work. Even after

finalization of the rate analysis for Jet Grouting by the Board of Chief

Engineers on 27.08.2019, the Water Resources Department has continued to

revise the rates by way of various letters dated 03.12.2021, 06.01.2022 and

06.05.2022.

24. The letter dated 29.12.2020 addressed by the 2

nd

respondent was

challenged by „M/s Ratna Infrastructure Projects Private Limited‟ in

W.P.No.701 of 2021 before this Court, wherein, initially this Court was pleased

to pass an interim order on 07.01.2021 directing the 1

st

respondent not to

disburse any amount from the account of the 4

th

respondent and stayed all

further proceedings pursuant to the letter dated 29.12.2020 addressed by the

2

nd

respondent. In the said writ petition, the petitioner got impleaded as

respondent No.10 and filed a vacate stay petition. Thereafter, this Court, vide

interim order dated 17.07.2023, modified the earlier interim order dated

07.01.2021 as under:

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W.P.No.28711 of 2023

“For the reasons stated in the affidavit, as well as in the vacate Petition

along With the proceedings issued by Respondent No.3 to Respondent

No.1 dated 29.12.2020, there is a prima facie case in favour of

Respondent No.10. Accordingly, an interim direction already passed dated

07.01.2021 as referred above has been modified, directing Respondent

No.3 and Respondent No.1 to consider the claim and process the

admitted/approved amount of Rs.45.90 Crores in favour of Respondent

No.10 within a period of six weeks from the date of receipt of copy of this

order.”

25. It can also be seen that in W.P.No.23091 of 2023, filed by the very same

petitioner before this Court seeking direction to the respondents to release the

amount payable to the petitioner towards the completion of vibro compaction

works, this Court, having observed that the Water Resources Department is

the beneficiary out of the subject contract work executed by the petitioner,

directed the respondents to pay an amount of Rs.7,82,27,371/- within three

months. In compliance to the said order, the respondents have already paid

the amounts payable to the petitioner for the vibro compaction works

completed by it.

26. In view of the same It cannot be contended that merely because the

agreement entered between the Water Resources Department and the 4

th

respondent was terminated in the year 2019, the Water Resources

Department is absolved of its obligation to make payment for the works that

were admittedly completed by the petitioner in the year 2018 itself, which is

prior to termination of the abovementioned agreement. Having enjoyed the

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W.P.No.28711 of 2023

benefit of the works executed by the petitioner, denial of payment for the same

by the Water Resources Department would be wholly arbitrary, unjust, and

unsustainable in law. Further, the contention of learned Government Pleader

for Irrigation that no contractual relationship exists between the petitioner and

the department on the ground that the 2013 agreement was executed only

between the 4

th

respondent and the Water Resources Department is

untenable.

27. The material available on record would clearly show that the petitioner

executed the works under the supervision of the Water Resources

Department, and significantly, received direct instructions from the

Government authorities (Minutes of Meeting, dated 12.06.2017) for the

commencement and execution of the works. In such circumstances, it cannot

be argued that the petitioner had no direct nexus with the Water Resources

Department. Furthermore, the fact that the work executed by the petitioner

was duly acknowledged by the Water Resources Department in the letter

dated 20.12.2020, strengthens the claim of the petitioner. In view of the above,

the petitioner is clearly entitled to receive payment of Rs.45,90,00,000/- and

this Court does not find the arguments putforth by the learned Government

Pleader for irrigation to be effective.

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W.P.No.28711 of 2023

28. In the result, this writ petition is disposed of and the respondents are

directed to pay the amount of Rs.45,90,00,000/- to the petitioner within a

period of eight (8) months from the date of receipt of a copy of this order.

There shall be no order as to costs.

Consequently, Miscellaneous Petitions, if any, pending in this Petition

shall stand closed.

_____________________

JUSTICE V.SUJATHA

.01.2026

Gss