A KENCHIAH Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) PETITIONER seeks issuance of a writ of mandamus, forbearing the respondents from in any manner changing any/or shifting shop No. 101 from Block No. 6 or 7 as notified in the notice of auction on any ground and issue licence for shops only in the blocks as provided for in the notice of auction, pass such further or other orders as this Court may deem fit and proper in the ircumstances of the case.

(2.) PETITIONER is the successful bidder in respect of Shop No. 100 in Block No. 9 of Jegathala Town Panchayat. It is his case that the main consideration of the petitioner to bid for an amount of Rs. 20,07,000/- was for the vending of arrack in and around Jegathala Urban Town Panchayat. The auction in his favour was confirmed and licence was also issued for a period of one year from 1.6.1998 to 31.5.1999. While petitioner was taking steps to commence business another successful bidder, i.e. , 4th respondent herein, in respect of Shop No. 101 in Block No. 6 or 7 in Jegathala Town Panchayat has now applied for a licence from 3rd respondent to open a shop in Block No. 8. or 10. It is the case of the petitioner that such a request for shifting of shop after conclusion of the auction and after confirmation of the sale is contrary to the provisions contained in Tamilnadu Prohibition Act and Retail Vending Rules. If such a request of the 4th respondent is allowed, petitioner will be put to heavy loss in as much as he will lose a large portion of the area in which he alone is entitled to carry on retail vending of the liquor pursuant to successful bidding for shop No. 100. Shop No. 100 is more valuable than Shop No. 101, and even the upset price fixed for shops evidences the same. The upset price for Shop No. 100 is 9 lakhs whereas the upset price for Shop No. 101 is 3 lakhs. PETITIONER has bit Arrack Shop No. 100 on the expectation that the Authorities will not permit the shifting of shops of other bidders and the petitioner was also induced to believe by the conduct of respondents 1 to 3 that he will be allowed to do business exclusively in the area where Shop No. 100 is located, i.e. , in and around Block No. 9 of Jegathala Village Town Panchayat. When the fourth respondent moved a representation for shifting Shop No. 101 from Block 6 to 7, to Block No. 8 or 10, petitioner wanted the Authorities not to permit change of Block, and he also insisted that the excise Authorities must strictly adhere to the auction notification. Personal appearance was also made before the Authorities. But the petitioner apprehends that the Authorities may permit the fourth respondent to locate his shop in Block No. 8 or 10 and not in Block No. 6 or 7, for which the bid was made.

(3.) UNDER the Tamil Nadu Liquor (Retail Vending) Rules, 1989, "area" has been defined as the locality determined by the Collector within which a retail vending shop shall be opened. Rule 4 provides for fixation of number of shops. According to the said Rule, the maximum number of shops to be located in the State shall be determined by the Government and the Commissioner, in consultation with the District Collector and after taking into consideration the needs of the District, fix the number of shops for ea ch district. Sub-rule (3) of Rule 4 further provides that the area in which the shops are to be opened can be determined by the Collector. It is after fixing these number of shops in the State and in the District and the areas in which the shops are to be opened, notice of auction is issued. Tenders are invited asking the bidders to submit their tender in regard to the areas. Form No. I, which is statutory in nature provides for conditions of tender. In fact the sale is conducted only in the area for which the bid is made and even at the time of submitting the tender, the intending bidder has to identify the area within which he intends to locate his shop. After depositing the earnest money, under Rule 7, the auction is conducted. Rule 9 provides the procedure for bidding. After the confirmation of the sale, the sale officer issues a letter of confirmation wherein also he has to state the shop in respect of which the bid is confirmed and the area where the shop is to be located. Form V provides for the same. In this connection, it may also be noted that in spite of confirmation by the Sale Officer under Rule 11, the District Collector either suo motu or an appeal or Revision, is entitled to set aside the same and the District Collector is further empowered to reauction the shop. The reauction must also conform to all the earlier proceedings. After sale is confirmed, and if the District Collector is not setting aside the auction and confirms the sale, the successful bidder has to apply for the grant of licence under Rule 13. In the meanwhile, the successful bidder also will have to locate the shop as provided in Rule 18. A reading of Rules 13 and 18 makes it clear that after the sale is confirmed, it is the exclusive responsibility of the successful bidder to locate the shop. The authorities are not choosing the shop. After locating the shop, it has to satisfy the conditions provided under Rules 13 and 18. It is inspected and the Authorities will certify that its location is suitable or conducting the business. If the successful bidder finds any difficulty in locating a shop, it is not the concern pi either the State or the excise officials to show him any sympathy and find out some other shop for him. Once the bid is confirmed, there is a concluded contract between the Government and the successful bidder.