Not specified in the document V. Not specified in the document

WP/20867/2012

AI Insights

The case involves a writ petition filed by a petitioner challenging the respondent's demand for a security deposit of Rs.61,00,000 for a lease agreement concerning sand quarrying rights. The petitioner had won the auction for the lease but contested the requirement to furnish a security deposit in addition to the auction amount already paid. The court examined the provisions under the Andhra Pradesh Minor Mineral Concession Rules, 1966, particularly Rule 9-I(2), which stipulates the security deposit requirements. The court found that the petitioner was obligated to pay the security deposit as specified in the rules and directed compliance.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 816181 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 10-07-2012
• Assessment Year: misc
• Laws Referred To: Andhra Pradesh Minor Mineral Concession Rules, 1966
• Result in Favour of: Applicant
• Court: HIGH COURT
• Keywords: Auction; Bank guarantee; Lease Deed; National Savings Certificate; Security Deposit; Writ of Mandamus
• Section: 9-I(2)

Judgement Text

"HON'BLE SRI JUSTICE K.C.BHANU WRIT PETITION NO.20867 OF 2012 O R D E R: This Writ Petition is filed seeking to issue writ of Mandamus declaring the order of the respondent made in letter No.5238/Sand/2012, dated 03.07.2012 insofar as it relates to directing the petitioner to furnish security deposit of Rs.61,00,000/- @ 10% in the form of National Savings Certificate pledged in favour of the Governor of Andhra Pradesh or Bank Guarantee given by any Nationalized Bank, for execution of lease deed in respect of Reach No.2, Godavarru-A, Duggirala Mandal, Guntur District to be paid on or before 09.07.2012 as illegal and arbitrary in view of the fact that the lease is for a period from the date of execution of lease deed till 31.03.2013 and the entire lease amount is being paid before the execution of the lease deed. 2. The brief facts, stated in the affidavit filed in support of the writ petition, are as under: Respondent issued auction notice on 09.06.2012 for holding public auction for grant of leasehold rights to quarry sand from different reaches including Reach No.2, Godavarru-A, Duggirala Mandal, Guntur District. The upset price for the said reach is fixed at Rs.2,58,13,200/- for the period till 31.03.2013. Petitioner participated in the auction on 30.06.2012 and became the highest bidder for Rs.6,10,00,000/- for the period till 31.03.2013. Respondent issued letter, dated 30.06.2012, declaring him as successful bidder and directing him to pay 25% of the knocked down amount along with Income Tax and the same is paid. The District Collector, Guntur District passed the confirmation order, dated 03.07.2012, directing him to pay the balance 75% of the highest bid amount along with Sales Tax, Security deposit of Rs.61 lakhs @ 10% and stamp duty at the rate of 5% instead of 0.4% apart from 0.5% registration fee on or before 09.07.2012. The petitioner has already paid a sum of Rs.64,53,300/- towards earnest money deposit before the auction and the same constitutes 25% of the upset price fixed in the notification. As per Rule 9-I(2) of the Andhra Pradesh Minor Mineral Concession Rules, 1966, (for short, (‘the Rules’) the bidder has to pay security deposit of 10% of the knocked down amount subject to a minimum of Rs.1,00,000/- or equivalent to bid amount, whichever is less, through NSC or bank guarantee. Petitioner is ready and willing to pay the knocked down amount and registration fee. But the respondent is demanding to pay the security deposit @ 10% in addition to the auction amount and other charges. Hence, the writ petition. 3. Heard both sides. 4. As per Rule 9-I(2) of the Rules, the bidder has to pay security deposit of 10% of the knocked down amount subject to a minimum of Rs.1,00,000/- or equivalent to bid amount, whichever is less, through National Savings Certificate or bank guarantee. The petitioner is also ready to pay the amount, but the time has elapsed. Therefore, the petitioner is directed to pay 10% of the knocked down amount towards the security deposit today or tomorrow and the respondent is directed to receive the bid amount. 5. With the above direction, the Writ Petition is disposed of. There shall be no order as to costs. 6. Miscellaneous petitions pending, if any, in this writ petition shall stand closed. _______________ K.C.BHANU, J 10th July, 2012 Note:-Issue operative portion of the order by wire at party’s costs. B/O AMD HON'BLE SRI JUSTICE K.C.BHANU WRIT PETITION NO.20867 OF 2012 Date:10.07.2012 AMD "