NCC can sue AP for damages: Hyderabad High Court

Hyderabad: The Hyderabad High Court has paved way for the hearing of a civil suit by the consortium of Nagarjuna Construction Company (NCC) Ltd and Nagarjuna Infra Holdings Ltd for recovery of Rs 13.84 crores from the AP government and AP Industrial Infrastructure Corporation (APIIC) for the cancellation of a contract awarded to their consortium for construction of AP Bhavan at Delhi. The contract, which was awarded to the consortium, was cancelled a year after in 2009.

A division bench comprising Justice P.V. Sanjay Kumar and Justice Anis while allowing a civil miscellaneous application (CMA) by the consortium directed to the trial court to entertain the suit of the consortium moved in 2012 and proceed with it in accordance with law.

The trial court returned the plaint of the consortium while dealing with an interim application moved by the AP government and APIIC holding that the plaint could not be rejected but returned it to the plaintiffs for presentation before the proper forum.

The AP government and the APIIC moved the application contending the Section 76 of the Andhra Pradesh Infrastructure Development Enabling Act, 2001 bars the suit and issue can be settled through arbitration. While considering the contention, the trial court returned the plaint to the consortium.

Justice Sanjay Kumar allowing the CMA held that return of the plaint by the trial court by applying Section 76 of the Act of 2001 cannot be sustained. The bench also pointed that there was no arbitration agreement between government and consortium.

AP gets time in bharathi plea
The Hyderabad High Court on Monday said it will it will summons the principal secretary of Andhra Pradesh mines department, if officials  do not file within a week a counter affidavit on a petition moved by the Bharathi Cement Company seeking the court’s direction to the AP government, AP Pollution Control Board and the Centre to grant and execute a conditional Mining Lease in favour of the company, pending the grant of environmental clearance.

When this petition came up for hearing before a division bench comprising Acting Chief Justice Ramesh Ranganthan and Justice A Shankar Narayana, special counsel for AP, D. Ramesh told the bench that the erstwhile AP government had issued GOs in 2008 and 2009 with regard to mining lease and the authorities are unable to trace those GOs. He urged the bench to grant some time to file the affidavit.  

After the Opposition from the petitioner’s counsel, C.V. Mohan Reddy, the bench said it is not proper for the government seek more time.