M/S. Himaja Fertilizers And Chemicals Pvt. Limited v. The State Of Andhra Pradesh

THE HON'BLE SRI JUSTICE A.V. SESHA SAI WRIT PETITION No.3130 of 2017 ORDER:

This writ petition is filed under Article 226 of the Constitution of India seeking the following relief: "to issue writ of Mandamus to declare the action of the Respondent No.3 in passing order File No.DSO6A0FZS/14/2016-SDT(CP-B)-DSO in ECP No.93 of 2016, dated 15-11-2016 as illegal, irregular, arbitrary and unconstitutional and consequently set aside the order passed by the Respondent No.3 in File No.DSO6A0FZS/14/2016-SDT(CP-B)-DSO in ECP No.93 of 2016, dated 15-11-2016."

Heard, Sri K. Sai Mohan Rao, learned counsel for the petitioner and learned Government Pleader for Civil Supplies for respondents.

Challenge in the present writ petition is to the Memo bearing E.C.P.No.93/2016, dated 15-11-2016 passed by the District Collector, Krishna. The said Memo reads as under: "Sri Nadimpalli Sai Devi Srinivasa Varma, S/o.Satyanarayna Raju, Chemist, M/s.Himaja Fertilizers and Chemicals Pvt., Ltd., Ravicharla Village, Nuzvid Mandal is hereby informed to file Bank Guarantee for Rs.75,41,655/- (Rupees Seventy Five Lakhs Forty One thousand Six Hundred and Fifty five only) being 75% value of the seized stock for obtain from any Nationalized Bank

in favour of the District Collector, Krishna, Machilipatnam for a period of two years for taking necessary action to release the seized stocks of 993.350 M.Ts.

of various fertilizers in E.C.P.No.93/2016 filed by the Fertilizer Inspector & Mandal Agricultural Officer, Nuzvid."

According to learned counsel for the petitioner, the impugned Memo is highly illegal and arbitrary and the District Collector, Krishna did not take into consideration the contents of the claim application and documents enclosed and arbitrarily directed to furnish bank guarantee as indicated in the impugned Memo. According to learned counsel for the petitioner, though the petitioner filed a detailed claim application, enclosing various documents the same were not considered by the District Collector. It is further submitted that since the impugned Memo is completely bereft of any reasons and is passed without taking into consideration the contents of the claim application, the same is liable to be set aside and the matter needs reconsideration by the District Collector, as per law. On the other hand, it is submitted by learned Government Pleader for Civil Supplies for respondents that appropriate orders will be passed, as per law. Learned counsel for the petitioner placed reliance on the order of this Court in W.P.No.40384 of 2016, dated

25-11-2016. In the said order at paragraph No.15 this Court held as under:

"5.

I have perused the order dated 08.11.2016.

This Court is of the view that there is no reference to the details/documents relied upon by the petitioners except recording a finding that the petitioners have not properly explained why the commodities seized by respondents are to be stored. As the findings recorded are incomplete and unsustainable, the observations against the claim of petitioners in the proceedings impugned are set aside and matter remitted to respondents 4 and 5 for fresh disposal within two (2) weeks from today. The auction of seized stock is stayed for a period of two (3) weeks from today."

A perusal of the Memo under challenge discloses that the District Collector did not take into consideration either the contents of claim application or the documents enclosed with the same.

For the aforesaid reasons, the writ petition is allowed, setting aside the Memo bearing E.C.P.No.93/2016, dated 15-11-2016 passed by the District Collector, Krishna and the matter is remanded to the District Collector, Krishna for fresh disposal of the claim application filed by the petitioner, in accordance with law, after taking into consideration the claim application filed by the petitioner and by giving notice and opportunity to the petitioner, within a

period of one month from the date of receipt of a copy of this order. Till the said exercise is done, seized stocks shall not be sold. The District Collector shall also make an endeavour to dispose of the main E.C.P., as expeditiously as possible. Miscellaneous Petitions pending, if any, shall stand closed. There shall be no order as to costs.

___________________ A.V. SESHA SAI, J February 01, 2017 Pn

THE HON'BLE SRI JUSTICE A.V. SESHA SAI WRIT PETITION No.3130 of 2017 February 01, 2017 Pn