STATE OF ANDHRA PRADESH REPRESENTED BY ITS SECRETARY, REVENUE DEPARTMENT, HYDERABAD AND OTHERS Vs. SRI VENKATESWARA ASSOCIATES, ARRACK CONTRACTORS, TWIN CITIES UNIT, HYDERABAD REPRESENTED BY ITS MANAGING PARTNER AND ANOTHER

JUDGEMENT

(1.) These two writ appeals by the State Government, Commissioner of Excise and other Excise authorities, are filed against the common judgment dated 30-12-1988 of a learned single Judge in W.P. Nos. 14715/1988 and 13992/1988 respectively, by which, it is held that the appellants herein are not entitled to collect the issue price for the minimum guaranteed quota for the second half of Sept., 1988, and that the writ petitioner was entitled for a remission of rental. There is a further direction that the Bank Guarantee encashed towards the cost of issue price shall be refunded and the writ petitioner was entitled to consequential remission of rental. The parties are referred to according to the ranking in the writ petitions.

(2.) For the Excise Year 1987-88 (commencing on 1st Oct., 1987 and ending on 30-9-1988) the writ petitioner was awarded the arrack contract for the shops in the Twin Cities of Hyderabad and Secunderabad on a monthly rental of Rs. 1,05,02,000.00. The minimum guaranteed quantity of arrack to be lifted by the petitioner, according to the auction notification, is equivalent to 37,01,706 bulk litres of 30 UP (comprising of 30,71,750 bulk litres of 60 UP and 19, 46, 420 bulk litres of 30 (UP). At the request of the petitioner some additional quota was also sanctioned during the year. The arrack is to be lifted according to the quota fixed for each month, which is again divided into two halves for each month. The rental for each month is to be paid by the contractor in two instalments on 20th and 30th of that month. The issue price is payable for the quota of arrack each month in two instalments on 5th and 15th and only after payment the quota is supplied.

(3.) The rights and obligations of the petitioner are governed by the various statutory provisions viz., Andhra Pradesh Excise Act, 1968 and the Rules framed thereunder and also the terms of contract. The Andhra Pradesh Excise (Lease of Right to Sell Liquor in Retail) Rules, 1969 (hereinafter called the retail rules) among other things provide for payment of rental and other amounts and furnishing of Bank guarantee by the contractor. The relevant rules are Rules 16 (1), 18 (1) & (4) and Rule 19 which read as follows -