S.P.R. GROUP HOLDING PVT. LTD. A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 REPRESENTED BY THE MANAGING DIRECTOR M. THIMMEGOWDA S/O LATE MUTTHEGOWDA Vs. THE STATE OF KARNATAKA REPRESENTED BY THE PRINCIPAL SECRETARY TO THE GOVERNMENT, DEP

JUDGEMENT

(1.) THE petitioners are all former excise contractors. The Government of Karnataka has come out with a scheme called 'Kara Samadhana Scheme -3' which provides for the waiver of interest on the payment of the principal excise arrears. The petitioners' grievance is that the earnest money deposits forfeited to the State are not being given any credit while computing the petitioner's liability. Demanding that the credit be given for the forfeited earnest money deposits, these petitions are instituted.

(2.) SRI M.R. Naik, the learned Senior Counsel appearing on behalf of the petitioners submits that while computing the loss, the respondents have not acted in the light and spirit of this Court's order in the case of Guruvamma v. State of Karnataka reported in AIR 2007 Kar 99, wherein it is held that the computation of loss cannot be by excluding the amount which has been received by the State by way of forfeiture of the amount of the bidder or in any manner. The learned Senior Counsel further submits that the said order of the learned Single Judge is confirmed by the Division Bench of this Court by its judgment, dated 21.01.2008 passed in W.A. No. 1298/2007.

(3.) THE learned Advocate General, Sri Ashok Haranahalli appearing for the respondent submits that the forfeiture of amounts on account of the breach committed by the petitioners is independently of the Excise Commissioner's obligation to compute the losses and recover the said amount from the contractors who have defaulted. He submits that the act of forfeiting the earnest money has nothing to do with the Government making profit or incurring loss on account of the re -auctioning of the vending right of arack.