G KISHORE Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) In this writ petition, the validity of the orders passed by the State Government in G.O. Rt. No. 485 Transport, Roads & Buildings (R.II/1) Department, dated 21/05/1991 entrusting the toll gate of "Kanakadurgamma Varadhi" to Sri V. Madhusudhana Rao, the fourth respondent in the writ petition, who is the appellant in the writ appeal for collection of toll-fee for the period from May 1, 199 1/03/1992 after accepting the offer of Rs. 80,00,000.00, is questioned. The writ petitioner, who is the first respondent in the writ appeal, filed W.P.M.P. No. 10008 of 1991 seeking suspension of operation of the orders passed by the State Government in G.O. Rt. No. 485, dated 21/05/1991, pending disposal of the writ petition. The learned single Judge granted interim suspension of operation of the orders passed by the State Government on 21/10/1991. The Executive Engineer, Roads & Buildings, National Highways, Mangalagiri, Guntur District, the third respondent in the writ petition was directed to take steps to collect the toll-fee. The interim order was made absolute on October 29, 1991 subject to the following condition:

(2.) The Executive Engineer, (R & B) National Highways Division, Mangalagiri, Guntur District, the third respondent herein issued a notification for sale by public auction on 21/02/1991 of the leasehold right for collection of toll-fee on "Kanakadurgamma Varadhi" across the river Krishna at Vijayawada for the period from May 1, 199 1/03/1992. The notification was got published in the local daily newspaper. The auction notification provides that the person intending to participate in the auction shall make an application to the Executive Engineer along with a Bank Guarantee for Rs. 7.5 lakhs Income-tax Clearance Certificate for the year 1991 and a Demand Draft for Rs. 1,00,000.00 towards earnest deposit. Nine persons including the fourth respondent submitted the applications. The fourth respondent filed W.P. No. 2112 of 1991 in this court on 14/02/1991 questioning the auction notification. He sought for a direction to the State Government to consider his request to extend the lease in his favour for one more year from 1/04/1991. It may be mentioned here that the fourth respondent was granted lease of the right to collect the toll-fee on "Kanakadurgamma Varadhi" for the period from 1/05/1990 to 31/03/1991 for a sum of Rs. 80,00,000.00. It is stated that he had submitted representations to the State Government that he had incurred loss during the lease period for the year 1990-91 due to various reasons mentioned therein. Therefore, he requested the State Government to grant him remission and to extend the lease beyond 1/04/1991. The writ petition was disposed of on 15/02/1991 with a direction to the State Government to dispose of the representations made by the fourth respondent within a period of fifteen days from the date of receipt of a copy of the order. Thereafter, the State Government stayed the auction scheduled to be held on 21/02/1991. The stay was vacated in the last week of March 1991. The third respondent intimated the nine intending bidders including the fourth respondent that the auction will be held on 15/04/1991. Accordingly, the third respondent conducted the auction on 15/04/1991. The highest bid for Rs. 73,64,000,.00was knocked down in favour of the fourth respondent. In accordance with the conditions incorporated in the sale notification, the fourth respondent approached the third respondent for deposit of monthly amount within three days from the date of auction. The third respondent rejected the bid and issued a fresh notification dated 19/04/1991 for the sale of the leasehold right by public auction on 15/05/1991. This notification was got published in the local daily newspaper "Eenadu" and it contains the same clauses referred to above relating to the filing of applications by intending bidders. The applications shall be submitted before 5.00 p.m. on 14/05/1991.

(3.) While so, the fourth respondent approached the State Government and offered to pay Rs. 80,00,000.00 towards the lease amount instead of Rs.73,64,000.00 for the period from May 1, 199 1/03/1992. At this stage, he filed W.P. No. 7039 of 1991 on the file of this court on 13/05/1991 questioning the validity of the notification dated 19/04/1991 issued by the third respondent for sale of the leasehold right on 15/05/1991. This court had not passed any interim order granting stay of auction. How- ever, the State Government sent telegraphic communication to the third respondent on 14/05/1991 cancelling the auction scheduled to be held on 15/05/1991. Thereafter, on 21/05/1991 the impugned order was passed by the State Government accepting the offer made by the fourth respondent and granting leasehold right in his favour for the year 1991-92 at the rate of Rs. 80,00,000.00 for eleven months. In view of the impugned order, the fourth respondent had withdrawn W.P. No. 7039 of 199 1/06/1991. While so, the present writ petition was filed on 19/06/1991.