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2005 DIGILAW 241 (AP)

K. v. Mohan Rao VS Government Of A. P.

2005-03-15

V.ESWARAIAH

body2005
V. ESWARAIAH, J. ( 1 ) THE petitioner questions the order of the Government issued in G. O. Rt. No. 639, Industries and Commerce (Tex) department, dated 6-10-2004, notifying the second respondent i. e. , M/s. Nandyal Cooperative Spinning Mills Limited, Nandyal, kurnool District to be a relief undertaking for a further period of one year from 25. 9. 2004 as illegal, arbitrary, without jurisdiction and altravires to the provisions of the Andhra pradesh Relief Under Takings (Special provisions) Act 19 of 1971. ( 2 ) THE petitioner initially questioned the g. O. Rt. No. 873, Industries and Commerce (Tex) Department, dated 19-11-2003, but during the pendency of the writ petition, the first respondent issued the impugned G. O. Rt. No. 639, dated 6-10-2004 and therefore, the petitioner was permitted to amend the writ prayer questioning the said Government order. ( 3 ) THE undisputed facts are that the petitioner entered into a contract with the nandyal Co-operative Spinning Mills Limited, nandyal-the second respondent herein on 11-2-1986 for construction of ancillary buildings of the second respondent and the work was completed by 30-11-1987. He submitted the final bill on 29-2-1998. As the final bill was not paid, the contractor raised a dispute and filed O. P. No. 167 of 1988 before the Subordinate Judge, Nandyal for appointment of sole Arbitrator. The Court appointed the sole Arbitrator on 12-3-1991. Aggrieved by the said order of the subordinate Judge, Nandyal, the second respondent filed CRP No. 1381 of 1991 on the file of this Court, which was dismissed, confirming the appointment of sole Arbitrator, against which, the second respondent filed civil Appeal No. 938 of 1993 in the Supreme court of India and the Apex Court also upheld the order of the Subordinate Judge, nandyal by dismissing the Civil Appeal on 9-3-1993. ( 4 ) THE sole Arbitrator after giving opportunity to both parties, registered the arbitration Case No. 10 of 1992, against which, the second respondent filed o. P. No. 277 of 1993 on the file of Subordinate judge, Nandyal to revoke the authority of sole Arbitrator, but the same was dismissed on 18-7-1995 and the Revision filed against the said order was also dismissed. Accordingly, the second respondent participated in the arbitration proceedings and the sole Arbitrator passed the award on 27-2-1999, allowing certain claims and disallowed certain other claims. Accordingly, the second respondent participated in the arbitration proceedings and the sole Arbitrator passed the award on 27-2-1999, allowing certain claims and disallowed certain other claims. ( 5 ) THE Execution Petitions filed by the petitioner were dismissed on some or other grounds and ultimately, the petitioner filed E. P. No. 91 of 2002 before the Principal district Judge, Kurnool, which was transferred to the newly constituted Court of Ill-Additional District Judge, Kurnool at nandyal and the same was renumbered as e. P. 2 of 2004. In the said pending E. P. , the second respondent filed a counter, stating that the Government issued order in G. O. Rt. No. 873, Industries and Commerce (Tex) department, dated 19-11-2003, declaring the second respondent as Relief Undertaking, therefore, the E. P. , is not maintainable. During the pendency of the writ petition, the period of said Government Order was elapsed and G. O. Rt. No. 639, dated 6-10-2004 was issued and therefore, the petitioner was permitted to amend the prayer to question the said G. O. Rt. No. 639, dated 6-10-2004. ( 6 ) IT is the case of the second respondent that the second respondent is a society registered under the provisions of the Andhra Pradesh Co-operative Societies act, 1964. The total value of the shares of the society is Rs. 651. 50 lakhs and the government of Andhra Pradesh is the major share-holder and owns shares worth rs. 631. 50 lakhs. The society had been performing the activities as a body registered under the A. P. Co-operative Societies Act, 1964 and went to commercial production in october 1988, but due to various factors, the society has not been making profits. With a view to improve the financial viability and avoid unemployment, the Government of Andhra Pradesh in exercise of powers conferred by Andhra Pradesh Relief undertakings (Special Provisions) Act, 1971 (Act No. 19 of 1971), issued G. O. Rt. No. 356, Industries and Commerce (Tex) department, dated 17-5-1977, declaring the said society as a Relief Undertaking for a period of one year from 17-6-1997. ( 7 ) ADMITTEDLY, the Government issued eight Government Orders, and the validity of each Government Order is one year declaring the second respondent as Relief undertaking under Section 3 (2) of Act 19 of 1971 as detailed below: