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2023 DIGILAW 632 (TS)

Mogulla Ashok Goud v. TSRTC

2023-09-11

SUREPALLI NANDA

body2023
ORDER : Heard the learned Counsel for the Petitioner and the learned Standing Counsel for the Respondents. 2. This Writ Petition is filed praying to issue a Writ of Mandamus declaring the orders of the 2nd respondent terminating the hire bus agreement of the petitioner for his passenger bus bearing no. TS 26 T 6668 vide orders in no. T1/359(19)/2019-RM-WL dated 26.04.2022 as illegal, arbitrary, against principles of natural justice and in clear violation of Articles 14, 19(1)(g) and 21 of the Constitution of India and set aside the same. 3. The case of the Petitioner, in brief, is as follows : (a) The Petitioner, in pursuance of the tender issued by the 1st respondent for the supply of passenger buses on a hire basis, submitted his tender and was declared as a successful bidder. Upon the instructions of the respondent nos. 1 and 2 the petitioner started operating passenger bus bearing no. TS 26 T 6668 on the route Thorrur - Hyderabad via Jaffargad upon an agreement executed with respondent no. 2 for a term of 10 years, starting from 12.03.2020 to 11.03.2024 and renewable thereafter for the rest of the term of the agreement. (b) Subsequently, the petitioner started operating the passenger bus for hire to the respondent corporation and no complaint in whatsoever manner was made against the petitioner in providing the services. While things stood thus, the insurance officials intimated the petitioner that the vehicle’s insurance has expired on 07.02.2022, and the same was renewed by the petitioner, which was effective from 07.02.2022 and valid up to 06.02.2023 and thus, the policy documents were handed over to the 3rd respondent. (c) The 2nd respondent issued a show-cause notice vide No. T1/359(19)/2019-RM-WL dated 18.04.2022 alleging that the petitioner has submitted a fake and fabricated insurance policy to the 3rd respondent by tampering the date of validity of the insurance policy which was effective from 02.01.2022 to 01.01.2023 for claiming hire charges, wherein the above said show cause notice was based on alleged report which has been allegedly submitted by respondent no. 3 after receiving the insurance policy from the petitioner for the period starting from 07.02.2022. (d) The allegation made by the respondent no. 3 after receiving the insurance policy from the petitioner for the period starting from 07.02.2022. (d) The allegation made by the respondent no. 2 in his show-cause notice prima facie show that the petitioner has submitted an insurance policy for the period starting from 07.02.2022 to 06.02.2023 again, after an insurance policy for the very same vehicle for the period starting from 02.01.2022 to 01.01.2023 was submitted by petitioner. (e) The petitioner submitted an explanation dated 23.04.2022 to the 2nd Respondent stating that under no circumstances the petitioner submitted any tampered insurance policy and any such situation has never arisen. Alongside, the 3rd respondent did not inform the petitioner about the expiry of the insurance policy. (f) The 2nd respondent without appreciating the representation dated 27.04.2022 submitted by the petitioner, called upon respondent No. 2 to conduct an enquiry into the alleged allegation of submission of a fake insurance policy. Subsequently, the 2nd respondent passed a cryptic and unreasonable order based on the report allegedly submitted by 3rd respondent and thus, terminated the hire agreement entered into with the petitioner. The respondents have stopped operating the petitioner’s passenger bus even before the issuance of a show-cause notice alleging misconduct against him. Hence this writ petition. 4. Counter Affidavit filed by the Respondents, in brief, is as under : (a) The petitioner has entered the agreement for initial four years period from 12.03.2020 to 11.03.2024 and has produced the Insurance Certificate with Policy issued by the New India Assurance Company Ltd in respect of the Hire Bus No. TS 26 T-6668 (EXPRESS Type) for the period from 27.12.2019 to 26.12.2020, 27.12.2020 to 26.12.2021 and from 07.02.2022 to 06.02.2023. (b) The Petitioner has submitted the Insurance Policy bearing No.431403/31/2022/2917 issued by the Oriental Insurance Company Ltd in respect of the Hire bus bearing No. TS26T -6670 covering the actual period from 07.02.2022 to 06.02.2023. Subsequently, the Licensee was submitted with another insurance policy bearing No. 431403/31/2022/2918 issued by the Oriental insurance Company Ltd, branch, Hanamkonda covering the continuity period from 02.01.2022 to 01.01.2028 and requested for payment of the Hire Charges of the said vehicle. (c) The 3rd Respondent sent the above-mentioned insurance Policy to the concerned Insurance Policy issuing authorities for verification and certification of its genuineness vide letter dated 15.03.2022. (c) The 3rd Respondent sent the above-mentioned insurance Policy to the concerned Insurance Policy issuing authorities for verification and certification of its genuineness vide letter dated 15.03.2022. In reply to the same, the said Insurance authorities addressed letter to the 3rd respondent vide letter dated 15.03.2022 stating that the Policy issued by the Oriental insurance Company in respect of the Hire Bus No, TS 26 T - 6668 covering the actual period is from 07.02.2022 to 06.02.2023, whereas the tampered period covered was from 02.01.2022 to 01.01.2023 and the same was certified as “The Policy Period was tampered with.” Thus, the Petitioner submitted the fake and fabricated Insurance Policy Bonds, violating the clause no.9 of the agreement. (d) The Petitioner produced the insurance Certificate with Policy issued by the New India Assurance Company Ltd in respect of the Hire Bus No. TS 26 T-6668 for the period from 27.12.2019 to 26.12.2020. In view of that, it is not correct that the petitioner’s policy was valid up to 07.02.2022. (e) Further, the petitioner was reminded several times over phone to submit Renewed insurance documents. After vigorous pursuit the PHB owner has submitted renewed insurance policy. The Petitioner submitted the Insurance PolicyNo.431494/31/2021/935 issued by the Oriental Insurance company with a validity 27.12.2020 to 26.12.2021. (f) The Respondent Corporation has proposed the payment of Jan-22 bill duly imposing of Rs.1000/- per day. The penalty was assessed as Rs.26,000/- for operation of bus without insurance. The petitioner, thus, for avoiding of penalty in Jan-22 PHB bills the petitioner submitted revised, tampered, fabricated insurance with validity date of 02.01.2022 to 01.01.2023. The petitioner’s requisition is also enclosed wherein he requested to consider the revised valid date of Insurance policies containing w.e.f. 02.01.22 to be considered and requested to release the Jan-2021 Hire bill dues. (g) Thus, the petitioner misguided the Corporation, due to which the corporation has filed a complaint against the Petitioner at Torrur Police Station and a case was registered U/S 420 vide FIR no.140/2022 against Petitioner. The same is under investigation. Hence, the Writ Petition is without merits and is liable to be dismissed. PERUSED THE RECORD : 5. (g) Thus, the petitioner misguided the Corporation, due to which the corporation has filed a complaint against the Petitioner at Torrur Police Station and a case was registered U/S 420 vide FIR no.140/2022 against Petitioner. The same is under investigation. Hence, the Writ Petition is without merits and is liable to be dismissed. PERUSED THE RECORD : 5. Counter Affidavit filed by the Respondents – Portion of Para 3, Para 4, Para 7 and Para 8 read as under : “3….The petitioner has submitted the Insurance Policy bearing No.431403/31/2022/2917 issued by the Oriental Insurance Company Ltd in respect of the Hire bus bearing No.TS 26T 6668 covering the actual period from 07.02.2022 to 06.02.2023. Subsequently, the Licensee submitted another insurance policy bearing No.431403/31/2022/2918 issued by the Oriental Insurance Company Ltd. Branch, Hanmakonda covering the continuity period from 02.01.2022 to 01.01.2023 and requested for payment of the Hire Charges of the said vehicle. 4. I respectfully submit that without submitting of renewed insurance policy w.e.f. 27.12.2021, the petitioner operated the vehicle is a serious lapse of PHB Owner. 7. I respectfully submit that the Corporation has proposed the payment of Jan-22 bill day imposing of Rs.1000/- per day. The penalty was assessed as Rs.26,000/- for operation of bus without insurance. To avoid the penalty the petitioner again submitted a petition as on 07.03.2022 duly stating that he has renewed revised insurance validity of Vehicle w.e.f. 02.01.2022 and requested to release the Jan-22 dues. The Corporation sent both the insurance policies to the insurance Company for verification of genuineness. The General Manager, Oriental Insurance Company certified the date from 02.01.2022 to 01.01.2023 is fabricated and 07.02.2022 to 06.02.2023 is correct. The Petitioner submitted an application to the Respondent requesting to pay the bills from January onwards. The above PHB owner has violated the terms & conditions of the Agreement vide Sl.No.9 of agreement and produced fake and fabricated policies for claiming Hire bus charges for the month of Jan-22 there by misleading the corporation. For his mistake a show cause was issued by Regional Manager/Warangal. 8. I respectfully submit that for avoiding of penalty in Jan - 22 PHB bills the petitioner submitted revised, tampered, fabricated insurance with validity date of 02.01.2022 to 01.01.2023. For his mistake a show cause was issued by Regional Manager/Warangal. 8. I respectfully submit that for avoiding of penalty in Jan - 22 PHB bills the petitioner submitted revised, tampered, fabricated insurance with validity date of 02.01.2022 to 01.01.2023. His requisition is also enclosed wherein he requested to consider the revised valid date of Insurance policies containing w.e.f.02.01.22 to be considered and requested to release the Jan-2021 Hire bill dues and in Whatsapp group and the phone call list also enclosed for ready reference. Depot Traffic in charge informed the validity of insurance expired. Hence, stop the bus still submission of valid Insurance policy by the PHB owner.” DISCUSSION AND CONCLUSION: 6. It is the specific case of the Petitioner that in pursuance of the tender issued by the 1st Respondent for the supply of passenger buses on a hire basis, the Petitioner submitted his tender and the Petitioner was declared as a successful bidder and upon the instructions of the Respondent No.1 and 2 Petitioner started operating passenger bus bearing No.TS 26 T 6668 on the route Thorrur – Hyderabad via Jaffargad upon an agreement executed with Respondent No.2 for a term of 10 years initially from 12.03.2020 to 11.03.2024 and renewal thereafter for the rest of the term of the agreement and the Petitioner had been providing the said services duly operating the passenger bus for hire to the Respondent Corporation without any complaints. It is further the case of the Petitioner that soon after the Petitioner received intimation from the Insurance officials that the Insurance to the vehicle expired on 07.02.2022, the Petitioner renewed the Insurance Policy effective from 07.02.2022 valid up to 06.02.2023 and handed over the Policy documents to the 3rd Respondent. While so, the 2nd Respondent had issued a Show Cause Notice vide No.T1/359(19)/2019-RM-WL, dated 18.04.2022 alleging that the Petitioner had submitted a fake and fabricated Insurance Policy to the 3rd Respondent and the Petitioner submitted his explanation to the said show cause notice dated 18.04.2022, but however, without considering the explanation submitted by the Petitioner, the order impugned dated 26.04.2022 of the 2nd Respondent herein had been passed against the Petitioner terminating the agreement with immediate effect based on the report of the Depot Manager, Thorrur Depot vide his Report No.01/359(1)/2018-TRR, dt. 16.04.2022 in an alleged enquiry conducted behind the back of the petitioner, which held that the Petitioner produced fake insurance policy documents covering the policy period from 02.01.2022 to 01.01.2023 for claiming the hire charges and thus the Petitioner has misled the Corporation by submitting fake and fabricated insurance policy documents in respect of the said hire bus. Aggrieved by the same, the petitioner filed the present writ petition. 7. The counter affidavit filed by the Respondents indicates that the order impugned dated 26.04.2022 of the 2nd Respondent which is an order of termination of agreement had been passed on the ground that the Petitioner violated Clause 9(i) of the Agreement which specifies that non-coverage of vehicle insurance entails in termination of Agreement without Notice and that the Petitioner committed a serious lapse and therefore Agreement was terminated after considering Petitioner’s explanation to the show cause notice and after not being convinced on perusal of the said explanation. 8. A bare perusal of the show cause notice for termination of the Agreement issued to the Petitioner clearly indicates at Sl.No.3 of the said reference the Report dated 16.04.2022 report No.01/359(1)/2018-TRR, of the Depot Manager, Thorrur, Mahabubabad District i.e., the 3rd Respondent herein addressed to the 2nd Respondent Regional Manager, TSRTC, Warangal Region, Warangal District. 9. A bare perusal of the contents of the show cause notice dated 18.04.2022 in particular the last 4 paragraphs, clearly indicate the reference not only to the report dated 16.04.2022 of the 3rd Respondent herein which has been admittedly behind the back of the Petitioner, but also a prejudged conclusion arrived at by the 2nd Respondent herein on the basis of the said report dt. 16.04.2022, an unilateral provisional conclusion arrived at against the Petitioner by the 2nd Respondent herein, that the Petitioner cheated the Corporation by submitting fake and fabricated Insurance Policy Bonds and that the Petitioner had violated the terms and conditions of the Agreement i.e., at Sl.No.9 of the Agreement and that 2nd Respondent had provisionally concluded that the Petitioner claimed the hire charges of the vehicle bearing No.TS 26 T-6668 by submitting fake and fabricated insurance policy and hence the Agreement between the Petitioner and the Respondent Corporation is liable to termination. 10. 10. A bare perusal of the order impugned indicates that on the ground that the Petitioner violated Clause 9(i) of the Agreement the order impugned has been passed against the Petitioner. 11. Clause 9(i) of the Agreement dated 11.03.2020 entered into between the Petitioner and TSRTC, Musheerabad, Hyderabad, which is valid from 12.03.2020 to 11.03.2024 reads as under : Clause 9(i) : The owner shall keep his vehicle duly insured comprehensively duly incorporating TSRTC as the hirer of the vehicle in the Insurance Policy against the Colum “Owner” to recover all risks and the Proposal Form shall be signed by both the owner and the hirer. The vehicle Insurance Policy Certificate of the vehicle shall carry “IMT 44 – Indemnity of hire package policy-negligence of the owner or hirer” endorsement; and the owner shall also pay other taxes and levies payable as a consequence of the operation of the above vehicle to all the authorities concerned. Non coverage of vehicle insurance entails in termination of agreement without notice. 12. A bare perusal of the explanation submitted by the Petitioner in response to the show cause notice dated 18.04.2022 issued to the Petitioner vide Petitioner’s letter dt. 23.04.2022 indicates that the Petitioner had renewed the Insurance Policy Certificate every year since 2020 to till 07.02.2022, when the Insurance officials informed the Petitioner about the lapse of insurance policy on 07.02.2022 that the bus insurance policy lapsed on 02.01.2021 on the same day i.e., 07.02.2022 itself, the petitioner immediately renewed the insurance policy effective from 07.02.2022 valid upto 06.02.2023 and thereafter, handed over the Insurance Policy Certificate to the 3rd Respondent herein. 13. This Court opines that the impugned order bears absolutely no reference to the explanation given by the Petitioner in his reply dated 23.04.2022 to the show cause notice dated 18.04.2022 and both the show cause notice for termination of Agreement dated 18.04.2022 of the 2nd Respondent herein and also the order impugned dated 26.04.2022 clearly indicate that the 2nd Respondent proceeded against the Petitioner in a biased, predetermined, prejudged manner relying on the report of the 3rd Respondent dated 16.04.2022 and further concluded the whole issue against the Petitioner unilaterally, irrationally in a totally unfair manner. 14. Taking into consideration the above referred facts and circumstances the Writ Petition is allowed and the order impugned dt. 26.04.2022 of the 2nd Respondent in proceedings No.T1/359(19)/2019-RM-WL is set aside. 14. Taking into consideration the above referred facts and circumstances the Writ Petition is allowed and the order impugned dt. 26.04.2022 of the 2nd Respondent in proceedings No.T1/359(19)/2019-RM-WL is set aside. However, there shall be no order as to costs. Miscellaneous petitions, if any, pending, shall stand closed.