IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD PRESENT: THE HON'BLE SRI JUSTICE K.C.BHANU WRIT PETITION No.34780 OF 2011 Date:30-12-2011 Between: Akula Adinarayana … Petitioner And The Government of Andhra Pradesh, Rep. by its Principle Secretary, Industries And Commerce Department, Secretariat, Hyderabad and others … Respondents HONOURABLE SRI JUSTICE K.C. BHANU WRIT PETITION No.34780 of 2011 ORDER: This Writ Petition is filed under Article 226 of the Constitution of India, seeking to issue a Writ of Mandamus declaring the action of the respondents in demanding the lease amount for full one year for the 2nd year lease without adjusting the excess amount paid for a period of 30 days in the first year lease commencing from 01-05-2010 to 31-03-2011 for the Reach No.14, Korumilli Village, Kapileswrapuram Mandal, East Godavari District of GLB, Km 32.600 to 33.600 Ramp point at K.32,700 as illegal, arbitrary and contrary to the Government Memo No.4919/SPIU & sand/2008-2, dated 13-06-2008, and violative of the A.P. Minor Mineral Concession Rules, 1966. 2. The brief facts that are necessary for disposal of this writ petition may be stated as follows: In pursuance of the auction notification, dated 04-04-2010, issued by the 5th respondent, for leasing out the right of quarrying for ordinary sand in Godavari River of Reach No.14, Korumilli Village of Kapileswarapuram Mandal, East Godavari District, the petitioner participated in the auction and stood as highest bidder. The minimum bid amount for the period from 01-05-2010 to 31-03-2011 is Rs.1,23,45,504/-. He became the highest bidder by quoting an amount of Rs.1,24,00,000/- (for 12 months). The 3rd respondent - the District Collector accorded confirmation of lease vide proceedings, dated 23-04-2010, directing the petitioner to execute the lease deed. Accordingly, the petitioner paid the required amount and executed the lease deed and the work order was issued vide proceedings, dated 29-04-2010 permitting the petitioner to conduct sand quarrying operations for a period of two years w.e.f. 01-05-2010 to 31-03-2012. The first year lease period started from 01-05-2010 and ends by 31-03-2011 i.e. for 11 months and the second year starts from 01-04-2011 and ends by 31-03-2012. The Government of A.P. issued Memo No.4919/SPIU & Sand/ 2008-2, dated 13-06-2008, clarifying that if the lease holder has indicated the bid amount for 12 months, the same shall be take into consideration and proportionate amount shall be collected, if the period is less than 12 months and balance amount if any at credit of the lessee, it shall be adjusted in the second year amount. As per Rule 9-E of the A.P. Minor Mineral Concession Rules, 1966, if the lease deed is executed for less than 12 months the bid amount has to be collected in proportionate to the period left and not for full one year. At the time of entering into the lease agreement for the first year, the petitioner paid the lease amount for 12 months, but the lease period was only 11 months i.e. from 01-05-2010 to 31-03-2011. The petitioner is under the impression that the excess amount paid for 30 days would be adjusted in the second year lease amount. The Government permitted the petitioner to pay the second year lease amount in equal quarterly installments. The petitioner had already paid three installments and the last quarter amount is due. He made representations to the 2nd respondent stating that he has paid excess lease amount for 30 days and adjust the same in the last quarter amount to be paid by him for the second year lease amount, and give necessary instructions to the 5th respondent to give permission to conduct the quarrying operations by paying the last installment. The 2nd respondent is not taking any action on the representations made by the petitioner and not giving any permission to conduct the quarrying operation by collecting the last quarter amount by adjusting the excess amount for a period of 30 days already paid by the petitioner. Hence, this Writ Petition. 3. Learned counsel for the petitioner stated that the petitioner paid excess amount for a period of 30 days in the first lease agreement and that amount has to be taken into consideration in the second lease period and therefore, he prays to issue a direction to the respondents to collect the 4th installment amount from the petitioner by adjusting the excess amount already paid by the petitioner. 4. On the other hand, the learned Government Pleader for Mines & Geology, appearing for the respondents, stated that payment of the lease amount should be in accordance with the lease agreement, Rules and also Memo, dated 13-06-2008. 5. The case of the petitioner is that in pursuance of the agreement, dated 01-05-2010, the respondents are demanding the lease amount for the entire one year of the second year lease without adjusting the excess amount paid for a period of 30 days in the first year lease. As per the Memo No. 4919/SPIU & sand/2008-2, dated 13-06-2008, if the bid period is for 12 months, the entire amount shall be collected and the proportionate amount shall be collected for the period less than 12 months and the balance amount, if any, it shall be adjusted for the second year lease period. Therefore, appropriate decision has to be taken by the respondents in accordance with the memo issued by the Government. 6. Hence, the Writ Petition is disposed of directing the respondents to take appropriate decision in accordance with law, particularly, with reference to the Memo No.4919/SPIU & Sand/2008-2, dated 13-06-2008, issued by the Government of A.P., and adjust the excess amount paid by the petitioner and receive the balance amount from him. No costs. ____________ K.C. BHANU, J December 30, 2011. KTL