SAVIN KUMAR SHETTY Vs. VITTAL ANCHAN

JUDGEMENT

(1.) THIS judgment shall dispose of Writ Appeal No. 8162/1999 (arising from an interim order passed in W. P. No. 43547/99 dated 7. 12. 1999)and W. A. No. 1570/2000 (arising from the interim order passed in w. P. No. 3242/2000 dated 17. 2. 2000), as the genesis of facts in these two appeals is the same and intertwine with each other at more than one place.

(2.) UNDISPUTED facts necessary for the disposal of these two appeals are:-At an auction held on 1. 5. 1999 for the retail vend of arrack in mangalore Taluk in respect of 272 shops, the bid of the appellant herein in a sum of R. 1. 25,10,000/- per month, was accepted for the excise year 1. 7. 1999 to 30. 6. 2000. As per the terms of the auction under Excise Rules, appellant should have furnished bank guarantee in a sum of Rs. 3,87,81,000/ -. Since the appellant could not mobilise the said amount he sought for extension of time to-furnish the Bank guarantee till 1. 10. 1999. He was permitted by the jurisdictional authority to vend arrack on paying 'daily kist' till his application for extension of time was decided. His request for extension of time till 1. 10. 1999 was not accepted and the Deputy Commissioner of Excise, mangalore issued a notice dated 3. 9. 1999 for re-auctioning the vends. This notice came to be challenged before the Excise Commissioner. According to the appellant the Excise Commissioner instead of deciding the appeal, wrote a letter to the State Government dated 14. 10. 1999 annexure 'd' and also determined the 'auction Rights' of the appellant. Earnest Money Deposited by the appellant was ordered to be forfeited. Re-auction was ordered.

(3.) THE order annexure-D came to be challenged by the appellant before this Court in W. P. No. 38779/99. The Court by its order dated 21. 10. 1999 granted an interim stay of annexure-'d' to be operative till 29th of October 1999 subject to the following conditions: (a) Appellant's furnishing the Bank Guarantee as required on or before 27. 10. 1999. (b) Appellant's paying the Kist amount upto date on or before 27. 10. 1999. The matter was ordered to be posted for preliminary hearing on 29th October 1999 on the adjourned date the Court ordered: