HARIHAR CONTRACTORS Vs. STATE OF U P

JUDGEMENT

(1.) -The moot question in this writ petition is whether it is the sanctity of the auction proceeding which is to be preserved or the Revenue of the State which is to be of prime consideration.

(2.) IN an auction held on 19.2.2003 for the grant of mining rights of minor minerals of Tehsil Sarila, district Hamirpur, the respondent No. 4, M/s. Chaudhary Associates Co. was the highest bidder. Their bid of Rs. 1.51 crores was forwarded by the District Magistrate to the State Government for its approval. After the State Government accorded its approval, the lease deed for the said area was executed in their favour on 15.3.2003. By means of this writ petition the petitioner M/s. Harihar Contractors have challenged the grant of the lease in favour of respondent No. 4 and have also prayed that the offer of the petitioner of 2% above the reserved price (fixed by the State at Rs. 2,21,19,485) be accepted, and the lease for a period of three years for excavation of minerals from the area in question be executed in their favour.

(3.) AT the time of filing of the writ petition, the petitioner had made an offer of 2% above the reserve price. which comes to about Rs. 2.25 crores. In order to prove their bona fide, this Court vide order dated 27.3.2003 directed the petitioner to deposit a sum of Rs. 1.12 crores with the District Magistrate, Hamirpur. The said amount has admittedly been deposited on 31.3.2003 and an affidavit to this effect has also been filed by the petitioner.