THE HON'BLE Ms. JUSTICE G.ROHINI WRIT PETITION No. 21418 OF 2010 Dated: 02.09.2010 Between: M/s. NCC-SMC-JV, a joint venture entity of M/s. Nagarjuna Construction Company Limited and M/s. SMC Limited, rep. by its authorized representative Mr. T.V.Parameswara Rao ..... PETITIONER AND The Greater Visakhapatnam Municipal Corporation, Rep. by its Commissioner, Visakhapatnam and others .....RESPONDENTS The Court made the following : THE HON’BLE Ms. JUSTICE G.ROHINI WRIT PETITION No. 21418 OF 2010 ORDER: The petitioner herein was awarded the work namely manufacturing supplying, lowering, laying, jointing, testing and commissioning of (a) 1400mm dia MS Gravity Pipe Line with in-lining and out coating with cement mortar from Balancing Reservoir at Padmabhapuram to Town Service Reservoir (b) 160mm dia MS Pumping Main with in lining and out coating with cement mortar from MGR to WTP at Narva – Package-II. Pursuant thereto, agreement dated 14.11.2003 was executed between the petitioner and the Greater Visakhapatnam Municipal Corporation. It is stated that the petitioner had completed the work in all respects by 03.10.2005. It is also stated that while the works were in progress, the petitioner submitted various representations claiming payment of escalation amount for the increase in the cost of steel plates. As the petitioner’s request was not considered by the respondents 1 and 2, the petitioner made a representation to the 3rd respondent on 28.10.2004 and having considered the same, the 3rd respondent by memo dated 04.11.2004 for the remarks of the 1st respondent. The issue was also taken up by the Government of A.P., M.A. & U.D. Department and by memo dated 09.05.2005, the 2nd respondent was called upon to submit the remarks. In response to the same, the 2nd respondent by letter dated 04.08.2005 recommended that the petitioner’s claim could be considered as a special case duly restricting the claim to the extent of sanctioned estimated amount. That apart, vide G.O.Ms.No.435, dated 18.08.2006, the Government accorded permission to allow price adjustment on works with a value of more than Rs.50 lakhs subject to the conditions specified thereunder. In the light of G.O.Ms.No.435, dated 18.08.2006, the petitioner by letter dated 07.09.2006 had again requested the 3rd respondent to settle their claim for compensation of steep hike in the price of the steel plates. In pursuance thereof, the 3rd respondent vide memo dated 14.09.2006 requested the respondents 1 and 5 to offer their comments. The petitioner states that though the 5th respondent by letter dated 03.11.2006 recommended for payment of the amounts claimed by the petitioner, the 1st respondent failed to respond. In the circumstances, the petitioner by letter dated 10.03.2010 requested the 1st respondent- Corporation to recommend its price adjustment claim in terms of the report of the 5th respondent dated 03.11.2006. As the 1st respondent failed to respond, the present writ petition has been filed seeking a declaration that the inaction on the part of the respondents 1 and 2 is arbitrary and illegal. I have heard the learned counsel for the petitioner as well as the learned standing counsel appearing for the Greater Visakhapatnam Municipal Corporation. Having regard to the fact that the petitioner had completed the work on 03.10.2005 itself, I am of the opinion that the respondents 1 to 3 are bound to take appropriate decision expeditiously with regard to the petitioner’s claim for payment of additional amount on account of increase in the cost of steel plates. Accordingly, without expressing any opinion as to the petitioner’s entitlement for additional amount for increase in the cost of steel plates, the Writ Petition is disposed of with a direction to the respondents 1 to 3 to consider the petitioner’s representation dated 10.03.2010 in the light of the remarks/reports submitted by the 5th respondent and pass appropriate orders in accordance with law as expeditiously as possible, preferably, within a period of six weeks from the date of receipt of this order. No costs. ___________ G. ROHINI, J Date: 02.09.2010 Note: Issue CC of order in three days (B/o) Ivd