(SHOW CAUSE NOTICE BEFORE ADMISSION) IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATE (Special Original Jurisdiction) WEDNESDAY, THE FOURTEENTH DAY OF JULY TWO THOUSAND AND TWENTY ONE :PRESENT: THE HONOURABLE SRI JUSTICE A V SESHA SAI

Between:

• 1. Vizianagaram District Rice Millers Association, Rep. by it's President, R/o. Rice Chamber, 1st Floor, RK palace, Mayuri Junction, Vizianagaram.
• 2. Sri Rama Mini Modern Rice Mill, Prop. Sunkari Sriramula Naidu, S/o Appala Naidu, Aged about 35 years, Gantyada Village, Gantyada Mandal, Vizianagaram District.
• 3. Sri Venkateswara Agro Food Industries, Managing Partner Smt. K.Dhanalaxmi, W/o. Suresh, Aged about 39 years, Kothabaggam Village, Gajapathinagaram Mandal, Vizianagaram District
• 4. M/s. Sri Venkateswara Modern Rice Mill,, Prop. Jammu Thatinaidu, S/o. Krishnam Naidu, Aged about 46 years. Alugolu Village, Nellimarla Mandal, Vizianagaram District.
• 5. Ayyappa Traders, Prop. Pusarla Krishna Rao, S/o. Late Sanyasi Setty,
• Aged about 40 years, Chandrampetta Village, Gantyada Mandal
• 6. Bharat Agro Foods, Prop. U Rajesh Varma, S/o. Ram Babu, Aged about 41 Palligandredu Village, Gurla Mandal, Vizianagaram District.<br>7. Sri Narasimha Traders,, Prop.B.V.S.R.Sarvadev, S/o. Late Venkataramanayya,
• Aged about 49 years, Sompuram Village, L.Kota Mandal, Vizianagaram District.
• 8. Sri Laxmi Santhoshimatha Modern Rice Mill,, Managing Partner. Gopalsetti Suresh, S/o. Srirama Murty, Aged about 50 years, Kalavarai Village, Bobbili Mandal, Vizianagaram District.
• 9. BRR Rice Mill,, Prop. Pusrla Kanaka Mahalaxmi, D/o. Gowri Sankar, Aged about 29 years, Vangara Village, Dattirajeru Mandal, Vizianagaram District.
• 10. Sri Vasavi Traders,, Prop. A. Ganapathi Raju, S/o Satyanarayana, Aged about 40 years, Puritipenta Village, Gajapathinagaram Mandal, Vizianagaram District.
• 11. Sri Annapurneswari Modern Rice Mill,, Prop. M. Dinesh Kumar, S/o. Sitarama<br>Swamy, Aged about 31 years, Kotagandredu Village, Gurla Mandal, Vizianagaram District.
• 12. Sri Sai Venkateswara Modern Rice Mill,, Amity Village, Terlam Mandal Prop. R.Mohana Krishna, S/o Satyamnaidu, Aged about 40 years, Amity Village, Terlam Mandal, Vizianagaram District.
• 13. Laxmi Ganesh Modern Rice Mill, Managing Partner Bhogi Samsunder, S/o. Ramana Murty,Aged about 58 years, Tamarakandi Village, Sethanagaram Mandal, Vizianagaram District.
• 14. Sri Rama Moderrn Rice and G.N.Oil Mill,, Prop. Ganta Subhramanyam, S/o Krishna Rao, Aged about 35 years, Parvatipuram, Parvatipuram Mandal, Vizianagaram District.
• 15. M/s. Sri Bhimalingeswara Mini Modern Rice Mill,, Prop. Uppala Ravi Kumar, S/o Rama Krishna Rao, Aged about 49 years, Kottakki Village, Rambhadrapuram Mandal, Vizianagaram District.
• 16. Sri Laxmi Srinivasa Industries,, Prop. Poripereddy Rama Rao, S/o. Sanyasi Naidu, Aged about 41 years, Ramaswamypeta Village, Vepada Mandal, Vizianagaram District.

Petitioners

OF ANT

ज्ञाते $\cdot$ $\cdot$ $\cdot$

AND

• 1. The State of Andhra Pradesh, Rep., by the Principal Secretary, Civil Supplies, Secretariat, Amaravathi, Guntur, Andhra Pradesh.
• 2. The Commissioner, Civil Supplies, Government of AP, Civil Supplies Bhavan, Vijayawada, Krishna District.
• 3. Andhra Pradesh Civil Supplies Corporation Ltd., Rep. by it's Vice Chairman and Managing Director, Sri Sai Towers, Ashok Nagar, Bandar Road, Vijayawada, Krishna District.
• 4. The District Collector, Vizianagaram District, Vizianagaram.<br>5. Andhra Pradesh Civil Supplies Corporation Ltd., , Rep. by it's District Manager, Vizianagaram.
• 6. The Food Corporation of India, Rep. by it's General Manager, Regional Office, Raja Narendra Building, Patamatta, Vijayawada.
• 7. The Food Corporation of India, Rep. by it's Divisional Manager, District Office, Visakhapatnam.

Respondents

WHEREAS the Petitioner above named through their Advocate Venkateswara Rao Gudapati presented this 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 an order or direction or writ more particularly one in the nature of Writ of Mandamus declaring action of the 3rd respondent in encashing the bank guarantees of the petitioner rice millers who are coguarantors in pursuance of the proceedings memo Lr. No.Mktg/M2/1920(3)KMS2020-21, dated 01-07-2021 as arbitrary illegal, null and void and to set aside the same and violation of Fundamental Rights guaranteed by the Constitution of India and the same is violative of principles of Natural Justice and public policy and -contrary to the supply agreement between the original rice millers and the 5th respondent and to issue consequential direction directing the respondent authorities not to encash the bank guarantee of the petitioner rice millers and if done restore the bank guarantee.

AND WHEREAS the High Court upon perusing the petition and affidavit filed herein and upon hearing the arguments of Sri Venkateswara Rao Gudapati Advocate for the Petitioner, Sri P. Hema Chandra, Standing Counsel who takes notice for Respondent No.3, directed issue of notice to the Respondents herein to show cause as to why this Writ Petition should not be admitted.

You viz:

• 1. The Principal Secretary, Civil Supplies, State of Andhra Pradesh, Secretariat, Amaravathi, Guntur, Andhra Pradesh.
• 2. The Commissioner, Civil Supplies, Government of AP, Civil Supplies Bhavan, Vijayawada, Krishna District.
• 3. The Vice Chairman and Managing Director, Andhra Pradesh Civil Supplies Corporation Ltd., Sri Sai Towers, Ashok Nagar, Bandar Road, Vijayawada, Krishna District.
• 4. The District Collector, Vizianagaram District, Vizianagaram.
• $5₁$ The District Manager, Andhra Pradesh Civil Supplies Corporation Ltd., Vizianagaram.
• 6. TheGeneral Manager, Food Corporation of India, Regional Office, Raja Narendra Building, Patamatta, Vijayawada.
• 7. The Divisional Manager, Food Corporation of India, District Office, Visakhapatnam.

are directed to show cause either appearing in person or through an Advocate, as to why in the circumstances set out in the petition and affidavit filed therewith (copy enclosed) this WRIT PETITION should not be admitted.

IA NO: 1 OF 2021

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High Court may be pleased to direct the 3^rd and 5^th respondent not to encash the petitioners bank guarantees of the petitioner rice millers who are co-guarantors by suspending the proceedings memo Lr. No.Mktg/M2/1920(3)KMS2020-21, dated 01-07-2021, pending disposal of WP No. 13662 of 2021, on the file of the High Court.

The Court made the following: ORDER:

Notice before admission.

Sri P.Hema Chandra, learned counsel, takes notice for the respondent-Corporation.

It is submitted by the learned counsel for the petitioners that the impugned action on the part of the respondents is illegal, arbitrary and violative of Articles 14 and 19(1)(g) of the Constitution of India. It is further submitted by the learned counsel that without taking into consideration the ground realities, the respondent-Corporation issued the impugned order.

On the other hand, it is submitted by Sri P.Hema Chandra, learned Standing Counsel for the respondent-Corporation that there is no illegality nor there exists any infirmity in the impugned action and that the Corporation has absolutely no power to extend the time also.

In reply, it is submitted by the learned counsel for the petitioners that till 07.07.2021, the petitioners herein have delivered the stock to the respondent-Corporation.

It is also the submission of the learned counsel for the respondent-Corporation that the bank guarantee of the majority of the petitioners herein have already been invoked.

The aspects pointed out in the writ affidavit have to be gone into after filing counter affidavit.

Therefore, for a period of four weeks from today, status quo as on today as regards the bank guaranties of the petitioners herein shall be maintained.

Post after three weeks.

$\sqrt{a}$ Sd/-K.TataRao

ASSISTANT REGISTRAR

IITRUE COPYII

SECTION OFFICER TYMI

• 1. The Principal Secretary, Civil Supplies, State of Andhra Pradesh, Secretariat, Amaravathi, Guntur, Andhra Pradesh.<br>The Commissioner, Civil Supplies, Government of AP, Civil Supplies Bhavan,
• $2.$ Vijayawada, Krishna District.
• 3. The Vice Chairman and Managing Director, Andhra Pradesh Civil Supplies Corporation Ltd., Sri Sai Towers, Ashok Nagar, Bandar Road, Vijayawada, Krishna District.
• 4. The District Collector, Vizianagaram District, Vizianagaram.
• 5. The District Manager, Andhra Pradesh Civil Supplies Corporation Ltd., Vizianagaram.
• 6. TheGeneral Manager, Food Corporation of India, Regional Office, Raja Narendra<br>Building, Patamatta, Vijayawada.
• 7. The Divisional Manager, Food Corporation of India, District Office, Visakhapatnam.
  • (1 to 7 by RPAD- along with a copy of petition and affidavit)
• 8. One CC to Sri Venkateswara Rao Gudapati, Advocate [OPUC]
• 9. Two CCs to GP for Civil Supplies , High Court of Andhra Pradesh. [OUT]
• 10. One CC to Sri P. Hemachandra, Standing Counsel (OPUC)

11. One spare copy

TVR

To

HIGH COURT

AVSSJ

$\mathcal{N}=\mathcal{N}$

DATED:14/07/2021

NOTICE BEFORE ADMISSION

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WP.No.13662 of 2021

POST AFTER THREE WEEKS