PRAHALADA ENTERPRISES Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) Heard the learned senior counsel for the petitioner; the learned government pleader for endowments for the respondent Nos.1 to 4; and the learned standing counsel for the respondent No.5.

(2.) This writ petition is filed questioning the action of the respondent No.5 in forfeiting a sum of Rs. 35,00,000.00 deposited by the petitioner on the ground that the condition No.9 of the auction notice dtd. 5/8/2021 is violated.

(3.) The learned senior counsel for the petitioner submitted that the respondent No.5 issued e-tender, sealed tender and public auction notice dtd. 5/8/2021 for the sale of offerings to the deity of Sri Lakshmi Panakala Narasimha Swamy presided on the uphill of Mangalagiri as shown in the list of item in the table given in the auction notice for the period from 27/8/2021 to 26/8/2022. The said auction notice was issued and affixed on the notice board. As per the tender conditions, the 13 items specified in the notice can be sold by the highest bidder at the prescribed rates for a period of one year commencing from 27/8/2021 to 26/8/2022. The interested person shall deposit the EMD of Rs. 5,00,000.00 to participate in the public auction. The petitioner being a regular visitor and strong devotee of Sri Lakshmi Panakala Narasimha Swamy participated in the auction and offered Rs. 1,35,00,000.00 towards bid amount and the same was accepted by the respondent No.5 on the auction dtd. 13/8/2021. The petitioner deposited Rs. 5,00,000.00 towards earnest money deposit. Then the respondent No.5 informed the petitioner to deposit the balance amount within a reasonable time and it was allowed to rise necessary infrastructure and procure the items immediately to conduct the sales of the items as mentioned in the above said public auction notice to cater the needs of the devotees. Then the petitioner incurred an expenditure of Rs. 7,00,000.00 for erection of the shop and spent about Rs. 8,00,000.00 to purchase the items. Also paid a sum of Rs. 18,00,000.00 through RTGS to the account of the respondent No.5 on 26/8/2021 and Rs. 2,00,000.00 on the same day for which the respondent No.5 issued receipt Nos.3682 and 3683 dtd. 26/8/2021 towards the part of bid amount. Thus the respondent No.5 received a sum of Rs. 25.00 lakhs in total as on 26/8/2021 which is about 20% of the bid amount. The petitioner was permitted to sell the items with effect from 27/8/2021 as per the schedule fixed in the above said public auction notice. Then the respondent No.5 issued a letter-cum-notice in Rc.No.A1/219/2013 dtd. 27/8/2021 to the petitioner to pay the balance bid amount of Rs. 1,10,00,000.00 within five days from the date of receipt of this notice failing which the tender would be cancelled by forfeiting the amount already deposited and fresh public auction would be conducted. Consequently the petitioner paid a sum of Rs. 5,00,000.00 on 27/8/2021, Rs. 2,50,000.00 on 1/9/2021 and Rs. 2,50,000.00 on 7/9/2021 towards the part of bid amount. With these payments it came to a total sum of Rs. 35,00,000.00 out of Rs. 1,35,00,000.00 that was deposited by the petitioner towards part of the bid amount. Then the petitioner submitted an explanation/request letter dtd. 7/9/2021 to the respondent No.5 seeking extension of time for payment of the balance amount. But the respondent No.5 did not consider the representation of the petitioner. Under those circumstances, the petitioner filed W.P.No.19877 of 2021 before this Hon'ble court and the same was disposed of by its order dtd. 14/9/2021 observing that it is open to the petitioner to place any such proposal for payment of the balance amount before the respondent No.5 and thereafter the respondent No.5 has to take a decision on the matter keeping in view of the possible hardship to the devotees if the said bid is cancelled. In view of the same, the petitioner made another representation dtd. 14/9/2021 expressing it's willingness and preparedness to pay a sum of Rs. 15,00,000.00 by 20/9/2021, another sum of Rs. 15,00,000.00 by 30/9/2021 and the remaining balance by the end of October,2 021. But to the utter surprise of the petitioner, the respondent No.5 rejected the request of the petitioner and passed the impugned proceedings dtd. 17/9/2021 forfeiting the amount of Rs. 35,00,000.00 deposited by the petitioner on the ground that the condition No.9 of the public auction notice dated 05.08.02021 was violated. Aggrieved by the same, this writ petition is filed.