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Andhra Pradesh High Court - Amravati

Larsen And Toubro Limited, vs The State Of Andhra Pradesh on 9 December, 2022

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVAT!
(SPECIAL ORIGINAL JURISDICTION)

FRIDAY, THE NINTH DAY OF NOVEMBER
TWO THOUSAND AND TWENTY TWO

'PRESENT:

THE HONOURABLE SRI JUSTICE RAV! NATH TILHARI

WP Nos. 27240 & 37245 OF 2022
WP No 37240 OF 2022

Between:

Larsen and Toubro Limited, a Cornmpany incorporated under the laws of India

having Registered Office at L & T Mouse, Ballard Estate, Murnbal - 400 004,

wih Hs Construction Division (LST Construction), Water and Effluent

Treatment, at TC-3 Bullding, Tower 8, 3° Floor, Mount Poonamalle Road,

Manapakkam, FS. No. 979, Chennai - 600 089, represented by its Authorised

Signatory -

. Petitioner
AND

The State of Anchra Pradesh, Rep. by iis Principal Secrelary, Municipal

Administration & Urban Davelooment Department AP. Secretariat Buildings

Velagapudi, Amaravall, Guntur District, Andhra Pradesh

2. The Chief Engineer, Public Health, O/o Tas Engineer-in-Chief (PH} Flat No.
504 & 601 Garuda Enclave, Tadepalli, GUNTUR (Dish - 522507.

3. The Superintending Engineer, (PH) Public Health Quality Cantrol Circle
Guntur, Guntur District GAP}

4. The Executive Engineer (PH), Public Health Division GS Raju Road, Near
Reservar Satyanarayanapuram, Vieyawaria - S20 014 Krishna District (AP)

5. The Deputy Executive Enoineer (PH), Nod Sub Division Vileyawada, Krishna
District (AP)

8. The Fay and Accounts CHfiog, £9-2-52, Shop NO.1 Manasa Cormplex,
Rasmarnarndiram Street Governerpeta, Near Andhra Hospital Viayawada - S20
O02 (AP}

woh

. mespondants

Patifion under Aricla 228 of the Constitution of india is fled praying that in the
circumstances stated In the affidavit fled therewith, tha High Court may be pleased
to issue a VVrit, more particularly, a Writ of Mandamus, or any other aporapriate Wit,
order or direction declaring that,-

ay. Memo No. 11142/T4fLabour Cass VRESSOIS-T? dated 21/07/2016 of the
Respondent No.g. he. The Chief Engineer (PH), Flat No. 804 and 601, Garuda
Enclave, Tadepall, Guntur. 522 501 and the impugned Cornnunication
No PS/ABIATAVAISWIV2INS dated OF/OG/2018 of the Respondent No.4. viz. The
Superintending Engineer (PH). Public Health Engineering Department, Ofo The
Executive Engineer (FH}, Public Health Divisinn, GS Raju Road, Near Reservotr,
Satyanarayanapuram, Vilayawada - $20 O41, Krishna District (AP) and the
subsequent actions of the Respondents in not granting the reimbursement of 1%
Labour Cass amounts for the Invoice value of the R.A. Bills of the Petitioner for the


WOKS done under the conrsct Agreement SEXP} OC ant AGREEMENT No.
Ff2018-2017 dated OV/OS/2018, for the works done beriaining toa the Project of Storr
Water Drainage Spoheme in VMC arag-ETS Survey, Establishment of PRMs
iParmanent SMs) using USPSIGTS SUVEY, SO investigation, designing,
Soretruction, COMMBsioning of primary, secondary and tertiary storm water drainage
het work in Viiayawada Gity in conformity with CPHEEO/NIDMWUrban Drainage
Guidelines including O&M for 5 years, are arbitrary, Negal anct in Violation of Articles
14, 18019) and 3004 of the Ganstifution of india, and contvary to the pravisians af
BOCWIRECS) Act and BOC\Y Wess Act 1896 and the Rules frarned there under,

Jounsequently, direct the Respondents nat to effect recoveries/ Heductlons of 194
acour Oeas amounts fram the RA Bitte already clearsd and reimbursed including
effecting daduotions/recovaring the 1% Labour Cass amounts from the Invoice value
of the RA Bills to be Submitted by the Petitioner, pursuant to the Agreement dated
01/08/2016 for the works Cone.

ce ox

a

&) Further direct the Respondents 8 fo 6 te feiease the arnount of R8.1,79,97,139/.

(Rupees One Crore Seventy Cine Lakhs Ninty One Thousand one Hundred Twenty
Two Only) towards 164 Labour Cass amaunts recovered from the gross net amounts
of the FLA. BH Nas.4 to 28 submitted by the Petitioner for the works done pursuant

ie the Agreement dated 04 AMSO18.

IA NO. 1 OF 2020

Petition under Section 197 CPC jg Plescd praying that in the CHCUMST ances
Stated In the affidavit fled in Support of the patitian the High Court May de tleasad
fo restrain the Respondents from recovering the 19 Labour Cess amounts paid by
them from the Running Bills submited, the future RA Bills to be subraites by the
Metifionsr pengining to the Contract Agreement SEYPAS Goe. GNT
AGREEMENT No. PROTG-2017 dated UUOGZ016, for the works done Pertaining to
the Project of Sturn Water Drainage Scheme i) VMC area-ETs Survey,
Establishment of PBMs (Parmanant SMs} using DSPS/GTS Survey, soil
investigation, designing, construction, cOTHTHSsioning of pnmary, secondary and
tertiary storm water drainage net work in Vilayawada City in conformity with
CPHEEONIDM/Urban Drainage Guidelinas including OandM for-5 Years, pending
Usposal of WP 87240 of 2022, on ihe fle of the High Court.

ped

IA NO: 2 OF 2009

Petition under Section IST CPC Is Hed praying thet in the circurnstanicas
Stated in the affidavit fled js SUBPGR OF the petition, the High Court May De pleased
to direct the Resnondant Nos.2 to 8 fo consider the representation of the Peliioner
Gated O4/0G018 te release the amounts towards 1° Lghour Ce8Ss smounts
PcOversd from the gross net amounts of the R.A. Bills for the works done perlaining
ta the Agreement dated OVOG2016, banding disnosal of Wye $7240 af 2022. cn the
Ne of the High Court

WP NO. 37248 OF 2n39

Sehveen:
Larsen & Tourbo Livifed, a
having registered office at
WHA is Construction ENvis

Company incerporated under the laws of ingle
& T House, Ballard Estate, Mumbai - 409 O01,"
fon {L&T Construction), Water and Effluent



Treatment, at TC-3 Budding, Tower &, 3° Floor, Mount Panamallee Road,
Manapakkam, PS No. SYS, Chennal - 800 089, represented by its Authorised
Signatory
Petitioner
AND

1. The State of Andhra Pradesh, Rep. by ts Principal Secrefary, Municipal
Administration & Urban Develonment Gepartment 4.P. Secretariat Buildings
Vela agapudi Amaravali, Guritur District Andhra Pradesh

2. The Engineer in Chief, Public Health & Muri idipal Engineering Department,
flat No. O04 and 601, Garuda Aparimant, Vadepall Guntur Distriot - 822 504

&. The Superintending Enginger (PH}, Public Health Circle P.B. No S, 'Mulapet,
Nellore- 524 903

§ The Eyecutive Engineer (PH}, Public Health Division, Ravindra Nagar,
Magaunta Layout Nellore - 524 008

5. The BDeouty Exeauive Engineer (PN), Public Health Sub Division
v fedayap alam industrial Estate Padalkur R oad, Nellore - S24 bod

6. Pay and Aconunts office, Works Acoounts, T.G.P. Compound, Dargamitta
Oop. NGO Home $.P.5.R. Nellore ~ $26 503. Andhra Pradesh.

._ Respondents

Peatiion under Article 236 of the Monsitition of india is fled praying that in the

mroumstances stated in the afidavil Hed therewith, the Hic oh Court rimay be pleased

io issue a Win, more parkcularly, a Writ of Mandamus, or any other appropriate Wri,
omer or direction decisring thal,

a} The impugned Mamo No. 7174 Alin, flabour cesaV&E 20716-2017 dated
STOrs2046 of the Respondent No.2 vie. The ¢ hief E Engineer, Publio Health and
Munic ipal Engineering Deparment Flat Na. 504 and 601, Garuda Aparimern,
Tadepallh, Guntur Uistiet - 822 504 and the subsequent actions of the Reapanders
in rot * granting the rei mbursement of 1% Labour Geas amounts for fhe Invoiog value
of fhe BLA. BHs of the Paetiioner for the warks done under the contract Agreement
Bond SE(PH) Nellore Agreement No.O3/2046-17 dated 15/05/2048, pertainh ng to the
Construction of Decertralized Se wage Treatnent Plants with proven in Technology
including receiving sumps cum pumping stations, Providing Sewer Network System
inentire city including Gonstruction of Convent onal Manholes and precast Manholes
House sewar connections and allied works, are arbitrary, legal and in viclation o
Aricies 4, 18f1g} and SOOA of the Constiution of India, and contrary to the
pravisions of ROCW! (RE and CO) Act arei BOCVWY! Cess Act, 1986 and the Rules
framed there under,

b) consequently, direct the Respondent not to effect recoveries / deductions of 1%
Labour cess fom the Invalce value of fhe RA Bis to be submitted by the Patilioner,
nursuart to the Agreement dated 16/05/2016 for the works done.

co} Further direct the Respondents {1 to 8 fo release the amount of 4.22.77 87S
(Rupees Four Crore Twenty-Two Lakhs Seventy. Seven thousand six hundred and
seventy-two Only} recovered fram the grass net amounts of the RLA. Buis Nos.7 to ¥
submitted by the Fefitioner for the worke dane pursuant fo the Agreement catad
TOS S01,


IA NO: 1 OF 2022

Petition under Section 154 CPC js Med praying that in the croumetancas
Siaisd in the affidavit Hed in Support of the writ petition. the High Court may be
eased to restrain the Respondents fram recovering the 195 Labour Cass amount
paid by tham from the Running Bile already submitied, the fidure RA Bilis to bs
submited by the Petitioner periaining to the Contract Agreement Bond SE(PH)
Nellore Agreemant No.02/2016-17 dated TOOS2016, for the works done berlaining
to the Biddars/Tenderars, for the purpase of executing the Construction of
Deventralised Sewage Treatment Planis WHA proven in Teshmology including
FRCSIVING SUMES CUIT Pumping slations, Providing Sewer Network Sysiem in entire
cy including Construction of Conventional Manholes and precast Manholes House
stwvar connections and allied warks, pending disposal of WP 37248 of 2022, an the
file of the High Court,

IA N&: 2 OF 2029

Patilion under Section 197 CPC i Mead praying that in the croumstances
Stated in the affidavit Hed in support of the petition, the High Court may be pleased
fo Greet the Reanandent No.3 ts considay the representations of the Petitioner to
release the amount of Rs.4.22,77 S72i(Rupees Four Crore Twenty Two Lakhs
Seventy Seven thousand si: hundred and Seventy two Orly) recovered from the
GPass Net amounts of the RUA. Bilis as of today for the works done pertaining to the

x
rar'

Agresmant Band SE{PH) Nellore Aursement No.QQ/2016-17, dated 464 SSO 18,
mending disposal of WP 37245 of 2022, on the fle of the High Court,

Thase petiians coming on for hearing, MPOM perusing the Petition and the
affidavit Med in support thersof and the ¢

Hons), learned OF for Municipal Administration & Urban
Develonrnent for the Responds ee GP for
Finance & Planning for Respondent No.8 Gn both Petifions}, the Court made the
follawing,

ORDER:

SAI eens Learned Government Pieader, prays for time and is Granted four (04) weeks time to file counter afidayit. ¥ counter affidavit is Aled, the replyrejoinder affidavit, if any, May also be fikecl within a further period of Ovo (12) weeks. No representation for the petitioner. Liston 27.04.2034.

Soo ea interim: order granted earfler is extended til the next date of fisting. Sdi- K, SRINIVASA RAGU ASSISTANT REG TRUE COPY! SECTION OFFICER Fear ~ NANO A f Sine Of ts Sri SEA S&S Manasch Arvecate (OPEN i. One CO io Sn VS iGanesh, Advocate [OPUC) "} Twe GOs tp GF for Murnnipal Adrrinisiration & Urban Development, High Court of Andhra Pradesh. [QUT]

3. Two OCs to GP for Finance & Planning, High Court of Andhra Pradesh. SOUT]

4. One spare copy, HIGH COURT RANT, J DATEDO8.12, 2022 OROER LIST ON 27.04.2023 WP Nos, 37240 & 27248 OF 2022 EATENSION OF EARLIER INTERIM ORDER