KOYA NARASIMHA SWAMY Vs. DISTRICT COLLECTOR KRISHNA DISTRICT

JUDGEMENT

(1.) The first respondent issued notification on 27-12-2004 inviting tenders/ bids and participation in the auction to lease out right to quarry sand for Kothapet reach in Krishna river. The auction was conducted on 17-1-2005. The petitioner became the highest bidder by quoting a sum of Rs. 22,00,000/- and paid a sum of Rs. 5,55,000/- being 25% of bid amount. The tender conditions require the successful bidder to deposit balance of the bid amount within five days after the issue of confirmation order. The petitioner alleges that he made all arrangements for discharging the said obligation. He was laid up due to ill health from 5-2-2005 to 2-3-2005 but did not receive any confirmation order from the first respondent. He states that when he went to the office of the second respondent, he was informed that the confirmation order was sent by post. He did not receive the same but he voluntarily approached the second respondent and submitted a demand draft for an amount of Rs. 11,45,000/- on 15-3-2005 and also submitted necessary stamp papers for execution of the lease deed. In the meanwhile, the villagers of Kothapet filed writ petition being W.P. No. 6429 of 2005 and this Court stayed the confirmation of the tenders. By reason of which, the lease deed could not be executed. The said writ petition, however, was dismissed as withdrawn on 5-7-2005. Thereafter, the petitioner approached the respondents requesting for issue of work orders and for completion of legal documentation. He also submitted representations on 12-7-2005 and 30-8-2005, in vain. He received the communication dated 24-10-2005 from the first respondent intimating that the lease in his favour was cancelled on 28-3-2005 as he failed to deposit the balance of 75% of bid amount within the stipulated time. He was also informed that the said order was proceeded by a snow cause notice dated 15-3-2005. The petitioner alleges that he never received the show cause notice or the cancellation order dated 28-3-2005. Therefore, assailing communication dated 24-10-2005 as well as cancellation order dated 28-3-2005, the present writ petition is filed. The petitioner seeks a declaration that the action of the respondents is illegal and violative of principles of natural justice and for a consequential order directing the respondents to enter into agreement with the petitioner and issue work orders for Kothapet reach.

(2.) The learned counsel for the petitioner strenuously contends that the impugned cancellation is void as it is in breach of principles of natural justice. He would urge that the second respondent accepted the balance of 75% of the bid amount on 15-3-2005 and therefore the principle of waiver operates against any cancellation as the amount was accepted without any demur. He would also contend that though the writ petition filed by the villagers was pending before this Court for more than four months, the respondents never brought to the notice of this Court about the alleged cancellation and therefore it is not fair on the part of the respondents to contend that the sanction is cancelled.

(3.) The learned Assistant Government Pleader for Panchayat Raj, per contra, on instructions, submits that the petitioner failed to pay the balance of 75% of the bid amount within the stipulated time i.e. 1-2-2005 but paid the amount on 15-3-2005 and therefore after issuing notice, the lease was cancelled. He also submits that the second respondent did not accept the amount and on request made by the petitioner the amount of Rs. 16,45,000/- by way of demand draft was returned to the petitioner and after conducting fresh auction, the bid was knocked down for a sum of Rs. 9,00,000.02 ps against upset price of Rs.22,00,000/-. The learned Assistant Government Pleader submits that the forfeiting of 25% of amount is in accordance with law and therefore no interference is called for in this writ petition.