M/s Y.S Traders, Vs The State of Andhra Pradesh

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APHC010349542025

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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction)

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V,
- Jiff (B u
FRIDAY,THE TWENTY NINETH DAY OF AUGUST
TWO THOUSAND AND TWENTY FIVE ^

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PRESENT

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THE HONOURABLE SRI JUSTICE K SREENIVASA REDDY

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WRIT PETITION NO: 17525 OF 2025

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Between:

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M/s Y.S Traders,, MGLM Unit Auto Nagar, Rep. by its proprietor, Devarapalli Anand kunnar, S/o D. Koteswara rao. Aged 48 years, Occ: Proprietor, R/ o D. No 26-17-49, 1st floor. Near auto Nagar Gate, Vijayawada, Andhra Pradesh, Pin-520003

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...Petitioner

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AND

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The State of Andhra Pradesh, Rep. by its Principal Secretary to Government, Social Welfare Department, Secretariat Velagapudi, Amaravati Guntur District.

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Leather Industries Development Corporation of A.P LTD, Rep. by its Vice Chairman and Managing Director, Office at Mahendra Enclave, NRI Block-C, 3rd Floor, Flat No.8, Tadepalli, Guntur-522501.

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The Vice Chairman and Managing Director, LIDCAP^{LtdR/oMahendra} Enclave, NRI Block-C, 3rd Floor, Flat No.8, Tadepalli, Guntur, AP522501

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The District Collector, NTR District, Bandar Road, Vijayawada-520002, A.P.

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The Tahasildar, Vijayawada, Patamata, NTR District

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The Commissioner of Police, Vijayawada City.

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The Station House Officer, Patamata Police Station, Vijayawada City.

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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

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pleased to issue an appropriate Writ, Order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the respondent authorities in demolishing the structures on the leased land and further trying to dispossess the petitioner highhandedly without issuing^{notice,fromland} situated in R.S No. 173 - plot no.1 - lALA layout, Jawahar auto Nagar, Vijayawada, without following the due process of law, as illegal arbitrary and violative of Art 14,15,16,19,21 and 300-A of the Constitution of India consequently direct the respondents not to demolish any further structures and not to dispossess the petitioner, except in accordance with law as mandated by the Hon'ble Apex court in the case of Rame^GowdaV/SM Varadappa Naidu Citation 2003 LawSuit(SC) 1248.

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lA NO: 1 OF 2025

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Petition under Section 151 CPC praying that in the^{circumstancesstated} in the affidavit filed in support of the petition, the High Court may be pleased to direct the respondents not to demolish any further^{structuresonlandsituated} in R.S No. 173 - plot no.1 - lALA layout, Jawahar auto Nagar, Vijayawada without following due process of law and pass order^{orordersinaccordance} with law, pending disposal of the writ petition.

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lA NO: 2 OF 2025

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Leather Industries Development Corporation of A.P LTD, Rep. by its Vice Chairman and Managing Director, Office at Mahendra Enclave, NRI Block-C, 3rd Floor, Flat No.8, Tadepalli, Guntur-522501.

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The Vice Chairman and Managing Director, LIDCAP^{LtdR/oMahendra} Enclave, NRI Block-C, 3rd Floor, Flat No.8, Tadepalli, Guntur, AP522501

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...Petitioner/Respondent No. 2 and 3

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AND

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M/s Y.S Traders MGLM Unit Auto Nagar, Rep. by its proprietor, Devarapalli Anand kunnar, S/o D. Koteswara rao. Aged 48 years, Occ: Proprietor, R/ o D. No 26-17-49, 1st floor. Near auto Nagar Gate, Vijayawada, Andhra Pradesh, Pin-520003

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f'--'

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... Respondent/Petitioner

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1. The State of Andhra Pradesh, Rep. by its Principal Secretary to Government, Social Welfare Department, Secretariat Velagapudi, Amaravati Guntur District.

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1. The District Coltector, NTR District, Bandar Road, Vijayawada-520002, A.P.

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The Tahasildar, Vijayawada, Patamata, NTR District 5. The Commissioner of Police, Vijayawada City. 6. The Station House Officer, Patamata Police Station, Vijayawada City.

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...Respondents/Respondents 1,4 to 7

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Petition under Section 151 CPC praying that in the^{circumstancesstated} in the affidavit filed in support of the petition, the High Court may be pleased to vacate the interim order Dt.10.07.2025 passed in I.A.No. 1 of 2025 in W.P.No.17525 of 2025.

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Counsel for the Petitioner: SRI C SUMON

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Counsel for the Respondent No. 1 :GP FOR SOCIAL WELFARE

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Counsel for the Respondent Nos. 4 and 5:GP FOR REVENUE

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Counsel for the Respondent Nos. 6 and 7: GP FOR HOME

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The Court made the following order:

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.vr-'

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APHC010349542025

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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI

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[3327]

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(Special Original Jurisdiction)

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FRIDAY,THE TWENTY NINETH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE

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PRESENT

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THE HONOURABLE SRI JUSTICE K SREENIVASA REDDY WRIT PETITION NO: 17525/2025

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Between:

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1.M/S Y.S TRADERS,, MGLM UNIT AUTO NAGAR, REP. BY ITS PROPRIETOR, DEVARAPALLI ANAND KUNNAR, S/0 D. KOTESWARA RAO. AGED 48 YEARS, OCC- PROPRIETOR, R/ O D. NO 26-17-49, 1ST FLOOR, NEAR AUTO NAGAR GATE, VIJAYAWADA, ANDHRA PRADESH, PIN-520003

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...PETITIONER

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AND

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1.THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY TO GOVERNMENT, SOCIAL WELFARE DEPARTMEFIT DEPARTMENT, SECRETARIAT VELAGAPUDI, AMARAVATI GUNTUR DISTRICT.

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1. LEATHER INDUSTRIES DEVELOPMENT CORPORATION OF A P LTD, REP. BY ITS VICE CHAIRMAN AND MANAGING DIRECTOR, OFFICE AT MAHENDRA ENCLAVE, NRI BLOCK-C, 3RD FLOOR, FLAT N0.8, TADEPALLI, GUNTUR-522501.

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3.THE VICE CHAIRMAN AND MANAGING DIRECTOR, LIDCAP LTD R/0 MAHENDRA ENCLAVE, NRI BLOCK-C, 3RD FLOOR, FLAT NO.8, TADEPALLI, GUNTUR, AP-522501

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4.THE DISTRICT COLLECTOR, NTR DISTRICT, BANDAR ROAD, VIJAYAWADA-520002, A.P.

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5.THE TAHASILDAR, VIJAYAWADA, PATAMATA, NTR DISTRICT 6.THE COMMISSIONER OF POLICE, VIJAYAWADA CITY.

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7.THE STATION HOUSE OFFICER, PATAMATA POLICE STATION, VIJAYAWADA CITY.

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...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 tomay be pleased to issue an appropriate Writ, Order or direction more particularly one in the nature of Writ of MANDAMUS declaring the action of the respondent authorities in demolishing the structures on the leased land and further trying to dispossess the petitioner highhandedly without issuing notice, from^landsituated in R.S No. 173 - plot no.1 - lALA layout, Jawahar auto Nagar, Vijayawada, without following the due process of law, as illegal arbitrary and violative

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o Art 14,15,16,19,21 and 300-A of the Constitution of India consequently direct the respondents not to demolish any further structures and not to dispossess the petitioner, except in accordance with law as mandated by of RAME GOWDA V/S M VARADAPPA NAIDU Citation 2003 LawSuit(SC) 1248 and pass lA NO: 1 OF 2025 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 may be pleased to direct the , , respondents not to demolish any further structures on +land situated in R.S No. 173 - plot no.1 - lALA layout, Jawahar auto Nagar, Vijayawada without following due process of law and pass order or orders in accordance with law, pending disposal of the writ petitio lA NO: 2 OF 2025

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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 may be pleased to vacate the interim order Dt. 10.07.2025 passed in I.A.No. 1 of 2025 in W.P.No.17525 of 2025 and pass Counsel for the Petitioner:

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1.C SUMON Counsel for the Respondent(S): 1.GP FOR HOME

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2.GP FOR REVENUE 3.THE ADVOCATE GENERAL 4.GP FOR SOCIAL WELFARE The Court made the following:

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THE HONOURABLE SRI JUSTICE K.SREENIVASA REDDY

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WRIT PETITION No. 17525 OF 2025

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ORDER:

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The present Writ Petition is filed seeking the following relief:

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“...deelaring the action of the respondent authorities in demolishing the structures on the leased land and further trying to dispossess the petitioner high-handedly without issuing notice from the land situated in R.S.No. 173-plot no.l-IALA Layout, Jawahar Auto Nagar, Vijayawada, without following the due process of law as illegal, arbitrary and violative of Art 14, 15, 16, 19, 21 and 300A of the Constitution of^India and consequently direct the respondents not to demolish any further structures and not to dispossess the petitioner, except in accordance with law as mandated by the Honhle Apex Court in the case of Rame Gowda v. M.Varadappa Naidu (2003 LawSuit (SC) 1248), and pass

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It is the case of the petitioner that petitioner became highest bidder in the tenders invited by 2"^ respondent for empanelment with LIDCAP for a period of three years,^and2nd respondent issued proceedings dated 28.10.2021 agreeing for empanelment for a period of three years with certain^termsand

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conditions by referring Agreement dated 27.10.2021, and the petitioner started supplying goods as per orders since then. On the request of the petitioner for permission to exhibit its products in the premises of 2nd respondent at Auto Nagar, Vijayawada, 2nd respondent agreed to give the land on lease from 10.12.2021 to 31.01.2022 and also permitted to exhibit and sale of leather products at MLGM Unit, Auto Nagar, Vijayawada, with a condition to give 10% margin as commission, and the period was subsequently extended from time to time. Vide proceedings dated 26.09.2023, 2nd respondent fixed the monthly rent at Rs.75,000/- with effect from June, 2023. Vide letter dated 30.12.2023, the petitioner informed 3^ respondent about completion of supply of goods as per the order placed by 2'’<i respondent and requested to make payments to a tune of Rs.44,79,204/-, but 2nd respondent has not chosen to make the payment.

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It is further stated that there ISi a stock worth Rs. 1,94,88,800/- lying in leased premises of 2nd respondent, When the premises was offered to the petitioner for exhibiting leather goods, it was in a dilapidated condition, and the petitioner spent huge amounts, as stated in the writ affidavit, to

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make the sehedule premises conducive for installation of machinery, sewing units and other integrated and unified^units. Basing on representation of petitioner to consider payment of rent in lieu of payment of 10% commission, 2*^^ respondent agreed for the same and started collecting Rs.75,000/per month as rent for the tenancy/lease of the property in R.S.No.173 plot No.l-IALA, from June, 2023 onwards. After deducting the amounts which are to be set off, in lieu of rents , a sum of Rs.46,12,016/is still payable by 2nd respondent towards stock supplied as per the tender along with interest, But, 2nd respondent issued a notice dated 23.09.2024 directing the petitioner to vacate the schedule premises without any whisper as to payment of the amount due, and on that, the petitioner approached this Court by filing W.P.No.22192 of 2024, which was disposed of. on 01.10.2024 directing 2nd respondent not to proceed further pursuant to the said notice till completion of the lease period on 26.10.2024, without adhering to the terms of agreement and principles of^natural justice. Thereafter, when O^'d respondent informed petitioner to vacate the premises by 26.10.2024 without issuing notice,^the petitioner filed W.P.No.24632 of 2024 before this Court,^wherein

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this Court passed interim order directing both parties to maintain status quo subject to payment of monthly rent of Rs.75,000/- from that day. Pursuant thereto, the petitioner has been paying the rent. As the respondents were not coming forward to settle the amount due, the petitioner filed O.S.No.97 of 2025 before the VllI Additional District Judge, Vijayawada, Thereafter, W.P.No.24632 of 2024 was closed by this Court on 09.07.2025. It is stated that immediately after closing the said W.P., on 09.07.2025 at about 11.30 PM, without issuing a notice to vacate the premises, the respondents came to the premises along with private persons wearing masks and demolished the compound wall and instructed to clear the stock by next day evening, failing which the complete building shall be demolished, without there being any demolition order and high-handedly. Hence, the present Writ Petition. 3. This Court, vide Order dated 10.07.2025, directed the respondents not to demolish the structures in the subject premises till 15.07.2025, and thereafter, the said order is being extended from time to time.

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Respondents 2 and 3 filed counter affidavit stating inter aha that empanelment period of the writ petitioner granted

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vide order of 2nd respondent dated 28.10.2021, got expired on 26.10.2024. 2nd respondent granted permission for exhibition and sale of leather goods at MLGM Unit, Auto Nagar, Vijayawada from 10.12.2021 to 31.01.2022 subject to payment was of 10% commission on sales and the said permission extended thrice, and again, on the request of the petitioner, it was extended till 28.02.2023 specifically stipulating^that the petitioner should vacate the premises with one weeks’ prior notice. Again, on the request made by the petitioner. permission was extended from 01.03.2023 to 31.08.2023 on a monthly rent of Rs.75,000/- commending from June, 2023^and extensions were granted till 30.06.2024. Thereafter, no extension was granted to the petitioner. The petitioner^has been in continuous default in payment of rent amounts^from 01.06.2023 onwards and continued to occupy the premises without valid permission, compelling the respondents^toissue notices. Out of total 23 months from 01.06.2023 to 30.04.2025, petitioner paid rent only for seven months^from June 2023, November, 2024 to June, 2025, and Rs. 12,00,000/is outstanding, and there is wilful default in payment of rent by petitioner.

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It is further stated that the Exeeutive Engineer, R&B Division, Vijayawada inspected the premises and submitted a report dated 11.12.2024 that the same is in dilapidated condition and the same is unsafe and unfit for continued use and recommended for dismantling the same. The respondents decided to construct a Leather Bhavan in the said premises^to take up welfare schemes.

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As regards the amount payable to the petitioner, it is stated that the 2"^ respondent received purchase order from A.P. Social Welfare Residential Educational Institutions Society for Rs. 1,70,03,249/- for supply of shoes, pairs of black socks and school bags, and the same was awarded to the petitioner^on 10.03.2022, but petitioner the violated the terms and conditions of the procurement manual and failed to supply the^totalorder and supplied only to four districts and further failed to supply the order within the stipulated time of 45 days, 80% of the total amount inclusive of GST and TDS amounting to Rs.36,78,733/- was payable to the contractor after supply of the material and the remaining amount is payable after receipt of lab reports. After accounting for the penalty amount of Rs. 1,99,529/for delayed supply, TDS and GST deductions

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Rs. 1,27,698/- and 10% LIDCAP commission of Rs.3,19,246/-, the net amount payable to the petitioner works out to Rs.30,32,260/-, and the said amount was credited on 13.01.2025 to LIDCAP account. Additionally, Rs.3,44,422/-^was uploaded to CFMS portal through Treasury on 20.11.2024^and the same is awaiting funds clearance. Total amount payable^to the petitioner aggregates to Rs.33,76,682/and the respondents ae entitled to adjust outstanding lease dues of Rs. 12,00,000/- against the said amount, and the net^amount payable to the petitioner is Rs.21,76,682/-. No interim order has been granted in the suit O.S.No.97 of 2025. Pursuant to disposal of W.P.No.24632 of 2024, the respondents demolished compound wall of the subject premises in view of the report of the R&B authorities dated 11.12.2024 and started digging pits for construction of new compound wall in the interest of public safety, and no buildings were demolished in the said^activity. As the petitioner undertook in the earlier W.P.No.24632^of2024 to pursue with the said suit, the present Writ Petition is not maintainable. The writ petitioner is in possession of the property belonging to the respondents, without any^mannerof right. Hence, it is prayed to dismiss the Writ Petition.

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Heard the learned counsel for the petitioner and^Sri T.Vishnu Teja, learned Special Government Pleader attached to the office of the learned Advocate General. At the hearing, both the parties agreed to the extent that the respondents be directed to follow due process of law for evicting the petitioner from the subject premises, and the present Writ Petition be disposed of, with the said direction. In view of the said submission, the Writ Petition is disposed of, directing the respondents^tofollow due process of law for evicting the petitioner from the subject premises, and till such time, status quo shall be maintained. There shall be no order as to costs of the Writ Petition.

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As a sequel, interlocutory applications pending, if any, in the Writ Petition shall stand closed.

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Sd/- B PRASADA RAO ASSISTANT REGISTRAR

//TRUE COPY//

SECTION OFFICER

To,

The Principal Secretary to Government State of Andhra Pradesh,

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Social Welfare Department, Secretariat Velagapudi, Amaravatl Guntur District.

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The Vice Chairman and Managing Director, Leather Industries Development Corporation of AP LTD, Office at Mahendra Enclave, NRI Block-C, 3rd Floor, Flat No.8, Tadepalli, Guntur-522501.

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