WESTERN COALFIELDS LTD RAJPUR Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) Rule. Rule returnable forthwith. Heard finally with consent of learned counsel for parties.

(2.) The petitioner has challenged the communication dated 19-11-2009 and the demand notice dated 3-12-2009 calling upon the petitioner to pay 75% of the amount for which sand ghats were leased out to the petitioner. It is not in dispute that the petitioner participated in the auction of sand ghats of sixteen taluqas of Yavatmal district for 2008-09. Petitioner's bid for an amount of Rs. 18,22,275/-was accepted. The petitioner had already deposited l/4th amount of bid along with the bid itself. After the bids were accepted the petitioner was required under the terms of the auction to deposit 75% of the bid amount within a period of 15 days, which the petitioner did not. The respondents then cancelled the petitioner's bid.

(3.) The question that arises is, whether the respondents can call upon the petitioner to deposit 75% of the bid amount though the petitioner did not pay the said amount us required, as a result of which the bid in petitioner's favour has already been cancelled. Mr. Mehadia relied on sub-clauses (7) and (8) of Clause 3 which reads as follows :-