CHAPPA TIRUPATHINAIDU Vs. EXCISE SUPERINTENDENT VIZIANAGARAM

JUDGEMENT

(1.) As the facts in these three Writ Petitions are identical and the points that arise for consideration involve common questions of law and the petitioner is the same person, they are disposed of by a common order.

(2.) The petitioner in these three writ petitions is an abkari contractor.

(3.) The petitioner in W.P. No. 9602 of 1986 had taken on lease for the period 1-10-1985 to 30-9-1986 arrack shops of Uttaravalli, Konaivalsa and Nandigama for monthly rentals of Rs. 29, 402/-, Rs. 24, 730/- and Rs. 14, 507/- respectively, in a public auction which took place in August, 1985. The above shops were separately auctioned. The petitioner, being the common auction-purchaser, deposited Rs. 68, 622/- in cash representing one month's rentals and gave bank guarantee for two months' rentals and also another bank guarantee for a sum of Rs. 14,.071/- towards earnest money deposit and another bank guarantee for Rs. 7,800/- representing the minimum guaranteed quantity of liquor. The petitioner paid the monthly rentals due for the months of October, November and December, 1985 but for the month of January, 1986, he committed default and paid only part of the amount due as rental for that month. The Department, therefore, cancelled the petitioner's licence to run these shops and put them separately for re-auction. The re-auction was conducted on 13-3-1986 and 18-3-1986, but there were no bidders. The Department, therefore, clubbed these three shops with 12 other shops and put them all for re-auction and sold these three shops along with the 12 shops on 22-3-1986. On the basis of the loss estimated to have been suffered by the Department with respect to all the three shops by reason of the re-auction held on 22-3-1986, the Department issued the impugned notice, dated 20th June, 1986 demanding the petitioner to pay a sum of Rs. 3,90,305-40 P. It is the validity of these demand notices issued to the petitioners which have been challenged in these Writ Petitions