G KRISHNA RAO Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) W.A. No. 44 of 1964 is directed against the order of our learned brother Gopalrao Ekbote,J., in W.P.No. 436 of 1964. The petitioner in the Writ petition is the appellant in the Writ Appeal. He filed the Writ Petition seeking the issuance of a writ of mandamus directing the respondents to refund a sum of Rs. 2,838 (being the call deposit at a rate of Rs. 2 per gallon for 1439 gallons which is 1/4th of the total prescribed in a quota of 5,756 gallons) along with a sum of Rs. 18,840 with interest at 3 per cent, thereon representing the baitak amount and to forbear from collecting a sum of Rs. 17,805-25 P. under demand notice dated 28th December, 1963. Tnis writ petition was rejected even at the admission stage and hence this appeal.

(2.) The circumstances of the case are that the petitioner was the highest bidder in the auction of liquor sales for the year commencing from ist October, 1962 and ending with 30th September, 1963 in respect of 8 liquor shops in Medak Taluq. The amount of Baitak stipulated was Rs. 1,570 per month. A contract was accordingly entered into by the petitioner with the respondents. Under the contract 26,146 litres were fixed by the respondents as a minimum guarantee of purchase of liquor by the petitioner for the whole year. Under the terms of the contract the petitioner undertook to lift the aforesaid minimum quantity of liquor guaranteed by him.

(3.) Otherwise he was to pay a penalty for the unlifted quantity at the rate of Rs.3-71 per litre as per para. 12 (a) of the special Conditions applicable to the liquor shops. The petitioner paid to the respondents an earnest money of Rs. 6,280 representing the Baitak for four months. He also paid Rs. 377 as earnest money at a rate of Rs. 2 on the total licence fee payable in the year. Under the terms of the contract the petitioner had to pay a call deposit at a rate of Rs. 2 per gallon on the total quantity of minimum guarantee viz., 26,146 litres. 26,146 litres are equivalent to 5,756 gallons and at the rate of Rs. 2 per gallon a sum of Rs. 11,512 was payable by the petitioner as call deposit. That amount was stipulated to be paid in four instalments of Rs. 2,878 each. The petitioner, however paid only one instalment of Rs. 2,878. It is common case that the petitioner acquired only 20,571 litres of liquor from the authorised Government depot suppliers and failed to lift the balance of 5,575 litres, as per the terms of the contract. Nevertheless, the respondents did not suspend the licence of the petitioner. However they tried to reauction the liquor contract without success, with the consequence that the petitioner continued to be the licensee and the contract subsisted for the whole year. Invoking rule 12 (a) of the Special conditions applicable to the Liquor Shops, to their aid the respondents, calculating the amount for the unlifted quantity at the rate of Rs. 3,71 per litre, deducted the sumof Rs. 2,878 from it paid by the petitioner as the first instalment towards the call deposit and sent a demand notice dated 28th December, 1963 for the balance of Rs. 17,805-25 P. under the Madras Revenue Recovery Act. It is at this juncture that the petitioner has filed Writ Petition No. 426 of 1964 seeking the several reliefs stated above. It is not in dispute that the earnest mony deposit of Rs. 6,657 was adjusted towards the last three months rental. The learned Counsel for the appellant has, therefore confined his contention to the demand of the respondents for Rs. 17,850-25P. and to his claim of refund of Rs. 2,878.