Disposed

M/s. Svr Electricals Pvt. Ltd. v. State of Andhra Pradesh

Andhra Pradesh HC21 Sept 2021WP/20909/2021

Case brief

AI extract

What is this about?

The court dealt with a writ petition challenging a letter by the Chief General Manager regarding alleged deviations in distribution transformer tests. The High Court directed the second respondent to furnish the test reports within one week to enable the petitioner to submit an explanation.

What did the court decide?

Direction to furnish test report copies within one week and submit explanation within two weeks; stay on coercive action pending explanation.

M/s. Svr Electricals Pvt. Ltd. Vs… — Contract and Commercial Disputes | Andhra Pradesh HC (2021)

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THE HON'BLE SRI JUSTICE A.V.SESHA SAI

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WRIT PETITION No.20909 OF 2021

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ORDER:

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Heard Sri K.V.Bhanu Prasad, learned counsel for the petitioner; Sri S.Sathish Kumar, learned Government Pleader for Energy and Information Technology appearing for the first respondent and Sri Y.Nagi Reddy, learned Standing Counsel appearing for the respondents 2 and 3, apart from perusing the entire material available on record.

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Letter bearing No.CGM/P&MM/GM(P)/DE(P.I)ADE(P3)/ D.No.1572/21, dated 07.09.2021, of the Chief General Manager, P & MM, APSPDCL, Tirupati-second respondent herein is under challenge in the present Writ Petition.

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By invoking Clause No.45 of Section IV of the Tender Specifications, respondents herein sent three numbers of 25KVA distribution transformers supplied by the petitioner herein to M/s CPRI, Bangalore and, as per the information available on record, tests were also conducted on 22.07.2021, 23.07.2021 and 26.07.2021 in the presence of the Executive Engineer/Transformers/Tirupati & Kadapa and test results were also received from M/s CPRI vide letter, dated 04.08.2021.

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According to the said tests undertaken, the testing agency observed the following alleged deviations:

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AVSS,J W.P.No.20909 of 2021

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Sl.No. 1	Description of the Test 25 KVA-Sl.No.S-47	GTP Value 990-PO No.	s 51-4352,	CPRI Test results Dt.10.09.18 (SPMPT-	Remarks 65/18-19)
a	Measurement of short circuit impedance & Load loss @ 50% and 100% Load	50% Load (Watts)	100% Load (Watts)	50% Load (Watts) 100% Load (Wat	ts) Not complied for Land loss @ 50% Load
		175	595	231.44 575.	41
2	25 KVA-Sl.No.S-50	257-PO No.	51-4694,	Dt.27.12.18 (SPMPT-	65/18-19)
a	Measurement of voltage ratio & Check of Phase displacement	R Ph-44 Y Ph-44 B Ph-44	Y B	R Ph-39.77 Ph-32.33 Ph-38.21	Not complied for 1)Voltage ratio 2)Impedence and 3) Load loss @50% and 100% Load
b	Measurement of %Impedence	4.5	3	.827
C	Measurement of short circuit impedance & Load loss@50% and 100% Load	50% Load (Watts)	100% Load (Watts)	50% Load (Watts) 100% Load (Wat	ts)
		175	595	265.84 639.	63
3	25 KVA-Sl.No.S-52	823-PO No.	51-4963,	Dt.18.04.19 (SPMPT-	107/18-19)
a	Measurement of voltage ratio &	R Ph-44 Y Ph-44	R Y	Ph-44.10 Ph-44.22	Not complied for Voltage ratio
	check of Phase	B Ph-44	B	Ph-44.08
4	displacement 100 KVA-Sl.No.S-4	3352-PO N	o.51-3842	, Dt.21.11.17 (SPMPT	-35/17-18)
a	Measurement of voltage ratio & check of Phase displacement	R Ph-44 Y Ph-44 B Ph-44		R Ph-43.34 Y Ph-44.03 B Ph-44.04	Not complied for 1)Voltage ratio and 2)Load loss @50% and 100% Load
b	Measurement of short circuit impedance & Load loss@50% and 100% Load	50% Load (Watts)	100% Load (Watts)	50% Load (Watts) 100% Load (Watts)	Not complied for 1)voltage ratio) and 2) Load loss @50% and 100% Load
		435W	1500W	489.07 1732.54
5	100 KVA-Sl.No.S-4	0613-PO N	o.51-3702	, Dt.01.08.17 (SPMPT	-35/17-18)
b	Measurement of short circuit impedance & Load loss@50% and 100%Load	50% Load (Watts) 435W	100% Load (Watts) 1500W	50% Load (Watts) 100% Loa (Watts) 462.30 1541.28	d Not complied for Load loss @50% Load & 100% Load

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While referring to the above said information, the Chief General Manager-second respondent herein, in the impugned letter, observed that the DTRs GTP limit is deviated in respect of i) Voltage ratio ii) % Impedance and iii) Total losses @ 50% and 100% Load. Second respondent herein, by way of the said letter, also informed the petitioner that action would be initiated against the petitioner-firm for the alleged deviations as per

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AVSS,J W.P.No.20909 of 2021

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Clause 45 (vii) of Section IV of Tender Specifications 34/ 17-18.

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According to the learned counsel for the petitioner, the entire impugned action, which culminated in the letter, dated 07.09.2021, of the second respondent, is highly illegal, arbitrary, unreasonable and violative of Articles 14 and 19 (1) (g) of the Constitution of India. It is the further submission of the learned counsel that the entire tests were conducted behind the back of the petitioner herein and the same is a patent violation of the principles of natural justice and it is also his submission that, without supplying the copies of the test reports, the impugned action is sought to be taken under Clause 45 (vii) of the Tender Specifications.

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On the contrary, vehemently opposing the very maintainability of the Writ Petition, it is contended by the learned Standing Counsel and the learned Government Pleader that, only with an intention to maintain the quality in services, the respondent authorities initiated action under Clause (45) of Section XIV of the Tender Specifications. It is further submitted that Clause 45 (ii) enables and authorises the respondents to get the materials inspected by the third party and also enables the authorities to take action for cancelling the vendor’s registration and for banning further dealings, in the event of finding non-adherence to the requirements by the supplier. In the instant case, admittedly, three numbers of 25KVA distribution transformers, in accordance with Clause 45 (ii)

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AVSS,J W.P.No.20909 of 2021

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referred to supra, were sent to M/s CPRI at Bangalore and, after holding necessary tests on 22.07.2021, 23.07.2021 and 26.07.2021, M/s CPRI, Bangalore also sent the reports to the respondents and, while referring to the said reports, by way of the impugned letter, dated 07.09.2021, petitioner herein has been informed about the initiation of action under Clause 45 (vii) of Section IV of the Tender Specifications 34/17-18.

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It is a settled and well established principle of law that any action, which has civil consequences, must necessarily be preceded by notice and complete opportunity to the persons likely to be affected by such action.

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According to the learned counsel for the petitioner, without supplying the copies of the test reports, action is sought to be taken against the petitioner herein which is penal in nature. Therefore, in order to have a quietus for the issue, in accordance with law, this Court deems it appropriate to dispose of the Writ Petition with a direction to the second respondent to furnish the copies of the reports received from M/s CPRI, Bangalore to the petitioner, within a period of one week from the date of receipt of a copy of this order, so as to enable the petitioner herein to submit explanation against the proposed action within a period of two weeks thereafter. Necessary orders are required to be passed after considering the said explanation, strictly in accordance with law. It is also made clear that, pending consideration of the said explanation, if submitted

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AVSS,J W.P.No.20909 of 2021

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within time, no coercive action shall be taken against the petitioner herein.

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