Disposed

V.S.A. Infra Projects Pvt. Ltd., v. the State of Ap

Andhra Pradesh HC7 Feb 2024WP/4790/2019

Case brief

AI extract

What is this about?

Writ petition challenging deduction of 1% labour cess from the petitioner's contract bills. Following a common order in W.P.No.16156 of 2020 and batch, the court directed verification of estimates: cess deductible only if the corresponding amount was included therein, otherwise no deduction or recovery.

What did the court decide?

Writ petition disposed of: respondents to verify estimates; cess deductible only if corresponding amount is included; otherwise no deduction/recovery; no costs.

V.S.A. Infra Projects Pvt. Ltd., Vs… — Labour and Industrial Disputes | Andhra Pradesh HC (2024)

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IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI

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(Special Original Jurisdiction)

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THURSDAY, THE EIGHTH DAY OF FEBRUAR
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TWO THOUSAND AND TWENTY FOUR •o 33,

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PRESENT

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THE HONOURABLE SRI JUSTICE SUBBA REDDY SATTI WRIT PETITION NO: 4790 OF 2019

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Between:

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V.S.A. Infra Projects Pvt Ltd., rep.by its Managing Director, Sri Kanta Reddy Konda Reddy S/o Chandra Reddy, 45 years, R/o Prasanth Nagar, Kukatpally, Hyderabad.

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...PETITIONER ^

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AND

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The State of A.P., Rep. by its Principal Secretary, Panchayat Raj and Rural Development, Secretariat, Velagapudi, Amaravati, Guntur^District.

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The Engineer-in-Chief, RWS and Sanitation, A.P. Rural Water Supply & Sanitation (APRWSSP), Vasudha Shelters 3"^ Floor C Block, Near LIC Colony, SaipuramColony, Gollapudi, Vijayawada-521 225.

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The Chief Engineer-ll, RWS and Sanitation, A.P. Rural Water Supply and Sanitation(APRWSSP), Vasudha Shelters Floor C Block,^Near LIC Colony, SaipuramColony, Gollapudi, Vijayawada-521^225.

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The Superintending Engineer, RWS and Sanitation, A.P. Rural Water Supply & Sanitation (APRWSSP), Circle, Chittoor,Chittoor^Dist.

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The Executive Engineer, RWS & S.Division, Madanapaile,^Chittoor District. A.P.State.

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...RESPONDENTS

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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 to issue a writ, order or direction more particularly one in the nature of WRIT OF MANDAMUS declaring the action of the respondents 4

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and 5 in deducting the labour cess @ 1% of the bills payable to the petitioner at the instance of respondents 1 to 3 as illegal, arbitrary and in contravention of Memo No.636/Reforms-A1/2008 dated 08-06-2011 and in contravention of Building and other Construction Workers' Welfare Cess Act, 1996 and the Rules made there under inagreement No dt.18.11.2015, in respect of work CPWS Scheme to Filer and 8 others habitations of Filer Constituency in Chittoor District vide Agreement No. 6/2014-15, dated 305-2014 entered by the 4*^ Respondent consequently direct the respondents not to deduct the labour cess from the bills payable to the petitioner without including the same as required to be included in terms of the Memo No.636/Reforms-A1/2008 dated 08-06-2011. lA NO: 1 OF 2019

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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 to direct the respondents not to deduct the labour cess from the bills of the petitioner in respect of agreement.No.6/2014-15, dated 30-52014 to CPWS Scheme to Filer and 8 other habitations in Filer Constituency in Chittoor District, pending disposal of the above said Writ Petition.

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Counsel for the Petitioner: SRI TEJA REPRESENTING SRI. N SUBBA RAO

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Counsel for the Respondent Nos. 1 to 5: SRI VEDULA VENKATA NARAYANA RAO, ASST.GP FOR PANCHAYAT RAJ & RURAL DEVELOPMENT

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The Court made the following: ORDER

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•*\

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IN THE HIGH COURT OF ANDHRA PRADESH AMARAVATI

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THE HON’BLE SRI JUSTICE SUBBA REDDY SATTI

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WRIT PETITION No.4790 OF 2019

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V.S.A.Infra Projects Pvt Ltd., rep. by its Managing Director, Sri Kanta Reddy Konda Reddy, S/o Chandra Reddy, 45 years, R/o Prasanth Nagar, Kukatpally, Hyderabad.

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... Petitioner

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Versus

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The State of A.P., rep. by its Principal Secretary, Panchayat Raj and Rural Development, Secretariat, Velagapudi, Amaravati, Guntur District and four others.

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Counsel for the petitioner : Sri N.Subba Rao Counsel for respondents ; GP for Panchayat Raj

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Counsel for the petitioner

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ORDER

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The above writ petition is filed to declare the action of respondent Nos.4 and 5 in deducting 1% labour cess^fromthe bills payable to the petitioner at the instance of respondent Nos.l to 3, as illegal, arbitrary, in contravention of Memo No.636/Reforms-Al/2008 dated 08.06.2011 and in contravention of Building and other Construction Workers’ Welfare Cess Act, 1996.

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Page 2 of 4

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SRS, J W.P.No.4790/2019

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Heard Sri Teja learned counsel representing Sri N.Subba Rao, learned counsel for the petitioner and Sri Vedula Venkata Narayana Rao, learned Assistant Government Pleader for Panchayat Raj appearing for respondent No.l.

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Learned counsel on either side would submit that the issue involved in this writ petition is covered by the common order dated 20.09.2023 passed in W.P.No. 16156 of 2020 and batch, wherein the learned Single Judge dealt with the point qua deduction of labour cess @ 1% from the bills.

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This Court perused the order dated 20.09.2023 passed in W.P.Nos. 16156 of 2020 and batch. The directions in the above writ petition would apply to the facts of this case. Therefore, this Writ Petition is disposed of in terms of common order dated 20.09.2023 in W.P.No. 16156 of 2020 and batch with the following directions:

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The respondents shall verify the bills of the petitioner and if the corresponding amount is included in the estimates, the respondents can deduct the amount as prescribed at the rate of 1% towards labour cess; 2) On verification, if the respondents found that the corresponding amount is not included in the

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Page 3 of 4

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SRS, J W.P.No.4790/2019

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estimates, the respondents shall not take steps to deduct the amount/recover the amount from the petitioner towards labour cess.

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No costs.

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As a sequel, pending miscellaneous petitions, if any,^shall

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stand dismissed.

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//TRUE COPY//

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SD/- V.SAVITHRI GOWRI ASSISTANT REGISTRAR

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SECTION OFFICER

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To,

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The Principal Secretary, Panchayat Raj & Rural Development,^Stateof Andhra Pradesh Secretariat, Velagapudi, Amaravati,^{GunturDistrict.}

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The Engineer-in-Chief, RWS and Sanitation, A.P. Rural^WaterSupply and Sanitation (APRWSSP), Vasudha Shelters 3'^'^ Floor^CBlock,Near Lie Colony, SaipuramColony, Gollapudi, Vijayawada-521^225.

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The Chief Engineer-ll, RWS and Sanitation, A.P. Rural^WaterSupply and Sanitation(APRWSSP), Vasudha Shelters 3'^^ Floor^CBlock,Near Lie Colony, SaipuramColony, Gollapudi, Vijayawada-521^225.

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