KSHITISH CH RAY Vs. COLLECTOR

JUDGEMENT

(1.) THE petitioner who was the highest bidder in a public auction for sale of five Ganja and Bhang shops at Balasore for the year 1986 -87 and whose bid was accepted by the Collector and whose case was recommended by the Collector to the State Government for grant of the exclusive privilege, has impugned in this writ petition the order of the Collector for re -auction of the said five shops as per Annexure -8 as well as the order of the State Government directing re -auction as per Annexure -9.

(2.) PETITIONER 's case is that pursuant to the notice issued by opposite party No. 1 on 12 -2 -1986 to hold auction sale of excise shops of Balasore District for the year 1986 -87, the petitioner bade at the auction that was held on 28 -2 -1986. The upset price fixed was Rs 17,900/ - per month. Petitioner's bid at Rs. 23,950/ - per month was provisionally accepted. In accordance with the terms contained in the notice dated 12 -2 -1986, petitioner deposited two months' consideration money on the same date and was required to deposit the balance four month's consideration money on or before, 3rd March, 1986. On 3 -3 -1986, the petitioner could not deposit the balance consideration money, but filed an application on 4 -3 -1986 for extension of some time for depositing the said balance consideration money and,, in fact, deposited one months' consideration money on that date. On 10 -3 -1986, the petitioner deposited the remaining consideration money amounting to R -s. 71,850/ - and thus by 10 -3 -1986, the entire consideration money representing the advance for six months had been paid by the petitioner. On 15 -3 -1986, the Collector recommended the petitioner's case to the Government for acceptance and grant of the privilege in question. Opposite party No, 2 who was the second highest bidder filed an appeal before the Excise Commissioner challenging the recommendation of the Collector dated 15 -3 -1986. Petitioner was not made a party to the said appeal. The Commissioner passed the final order on the appeal without noticing the petitioner on 15 -4 -1986 wherein the Commissioner held that the Collector had no jurisdiction to recommend the case of the petitioner, since the petitioner did not deposit the entire consideration money within the stipulated period. The Collector issued an order (Annexure -8) purporting it to be an implementation of the Government order for re -auction and later on, the State Government itself issued the order in Annexure -9 directing re -auction of the excise shops on 30 -5 -1986. When the petitioner approached this Court on 29 -5 -1986 this Court had directed that there should be no re -auction on 30 -5 -1986 and because of this direction there has been no re -auction as yet.

(3.) OPPOSITE party No. 2 has also filed an affidavit wherein the main stand is that no right accrues in favour of the petitioner unless and until the bid is finally accepted by the State Government and the State being the owner of the privilege is free to take such decision as is found proper. Since the petitioner did not make the deposit in time, the State Government was fully justified in directing re -auction.