P YADAIAH Vs. DISTRICT EXCISE KHAMMAM

JUDGEMENT

(1.) The petitioner is an Excise Contractor. His was the highest bid at the auction held on 30th August, 1971 for the right to vend arrack in Khammam group of 29 shops. The petitioner's bid was Rs. 85,700-00. As required by rule 16 of the Andhra Pradesh Excise (Lease of Right to Sell Liquor in Retail) Rules, 1969, the petitioner paid 2 per cent of the annual rentals as earnest money and also one month's rentals. The Abkari Year with which we are concerned commenced from 1st October, 1971 and ended with the end of September, 1972.

(2.) One Ch. Venkateswara Rao, who was the lessee of the two shops, out of the aforesaid 29 shops, filed Writ Petition No. 3211 of 1971 in the High Court objecting to the inclusion of those two shops in Khammam group of arrack shops. The writ petition was admitted on 30th August, 1971 and on the same day, this Court by an interim order directed the Government not to auction the right to vend liquor in the aforesaid two shops of Edilapur and Nayudupet and in case, the auction had already taken place, it should not be implemented in relation to those two shops.

(3.) The petitioner, by his letter dated 9th November, 1971, wrote to the Collector, Excise, Khammam that under the Excise Rules, he was obliged to deposit two months' rentals, within fifteen days from the date of the auction but, in view of the order of stay granted by High Court, to permit him to deposit the amount and complete the formalities not within fifteen days from the date of the auction, as required under the Excise Rules but, as soon as the High Court vacated the interim stay. The Collector did not send any reply to this letter of the petitioner, but, however, he had refrained from exercising his statutory rights under rule 20 of the Excise Rules by not cancelling the order and by not forfeiting the amount already deposited. No effort was made by the State before 1st October, 1971, to have the interim stay vacated, although the period of lease was to commence on 1st October. 1971. In those circumstances, the petitioner addressed another letter on 10th October, 1971 to the Collector, Excise, Khammam pointing out that the Government had taken no steps to have the stay vacated and that the refore he was withdrawing the offer given on 31st August, 1971 at the auction. The petitioner also requested for refund of the amount paid by him on 31st August, 1971. To this also, the Collector, Excise, did not reply. However, a petition was filed by the State in the High Court on 6th October, 1971 for vacating the stay and on 14th October, 1971 the stay was vacated by the High Court, It was then on 23th October, 1971, the Collector, Excise Khammam wrote to the petitioner informing him that the stay was vacated and that therefore, the petitioner should deposit the two months' rentals immediately. The petitioner replied to the Collector that he had already withdrawn the offer and that therefore, no question of his making any lurther deposit would arise. He also reiterated his request for refund of the amount already paid by him! The Excise Superintendent by his letter dated 8th November, 1971 informed the petitioner that his request for refund of the amount could not be accepted. The Collector, Excise, Khammam, by his letter dated 14th November, 1971 informed the petitioner that the amount of Rs. 1,06,268/- paid by him on 30th August, 1971 was forfeited under rule 20 of the A. P. Excise Rules.