TMI Blog2010 (7) TMI 1224X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment, entrusting the works to contractors, is regulated by the Andhra Pradesh Detailed Standard Specification besides the relevant Law of Contracts and Tax Laws. After entrustment of the work, the R B contractor is required to execute the contract in the form prescribed therefor. The contract comprehensively provides for the terms and conditions with regard to specifications, items of work executed, on which rate/rates tax is payable by the contractor, deductions to be made, delay in execution of the work, dispute resolution and the like. If any dispute arises, during the course of or after execution of the contract, such dispute has to be resolved either through arbitration or in a Civil Court. In 1998, the Government of Andhra Pra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent issued yet another order vide G.O.Ms.No.61, T,R B (R.III) Department, dated 11.4.2000, directing inclusion of a clause in the tender notices and agreements for recovery of 0.25% from the gross bill of the contractors, with a view to mobilise funds for the NAC. As per this G.O., all departments of the State, as well as Government Corporations, were required to include such a condition in the tender documents and the agreements for collection of 0.25% from the gross bill of contractors towards contribution to the NAC. The contribution was made mandatory, whether or not the contractor was willing to voluntarily part with 0.25% of the gross bill amount as his/her contribution. The Government also directed that such a condition be included i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accommodating the request Builders Association of India, the Government in G.O.Ms.No.92, T,R B (B.I) Department, dated 19.5.1998, has permitted the Executive Engineers to conclude supplemental agreements with the contractors for works under execution and to be entrusted in future basing on the request of the Builders Association of India, to deduct 0.25% of gross amount of bill and remit it to Institute of Construction Technology of India at Hyderabad for construction of building and for meeting the expenditure in running the institute. It is submitted that, the contribution by the contractors has been contemplated only because the Builders Association of India have agreed for doing so. Government have ordered to get such collections ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NAC and, therefore the contractors cannot be permitted to go back on the binding covenant in the agreement. In all the affidavits accompanying the writ petitions, the petitioners made categorical averment that the contract they entered into with concerned official does not include any such clause. This allegation remains uncontraverted in the counter affidavits. In the absence of any denial in the counter affidavits applying the principles of non-traverse, we have to hold that insofar as these appeals are concerned, the contracts by the appellants with the respondents do not contain any clause authorising the R B Department to deduct the contribution for NAC. It is well settled that the uncontraverted affidavit averments ordinarily are d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal before the Supreme Court, reliance was placed on the decision in Anabeshahi Wine and Distilleries Pvt. Ltd. The Supreme Court did not agree with the contention of the State of J K and distinguished Anabeshahi Wine and Distilleries Pvt. Ltd. It was held that unless there is a statutory backing for levy and collection of administrative charges, such expropriation would be unconstitutional. The observations relevant are as follows. Admittedly, in the present case there is no such provision in the Act or Rules. Therefore, the decision in Government of A.P. v Anabeshahi Wine and Distilleries Pvt Ltd., (1988) 2 SCC 25, is not applicable in the facts of the case at hand. It is now well settled principle of law that the regulator ..... X X X X Extracts X X X X X X X X Extracts X X X X
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