THE HON'BLE MR JUSTICE C.V.NAGARJUNA REDDY Writ Petition No.31743 of 2010 DT.16.12.2010 Between: Seelam Venkateshwarlu … Petitioner And The Collector (CS wing), Prakasam District, Ongole and another … Respondents Counsel for the Petitioner: Sri I.Koti Reddy Counsel for respondents: AGP for Civil Supplies The Court made the following ORDER: ORDER: This writ petition is filed for a mandamus to set aside proceedings, dated 06.12.2010, of respondent No.1, whereby he has directed release of the lorry bearing registration No.AP 27 W 5451 to the petitioner, subject to his furnishing bank guarantee for a sum of Rs.3,16,960/-. The petitioner felt aggrieved by the quantum of amount, for which, the bank guarantee was directed to be furnished. I have heard Sri I.Koti Reddy, learned counsel for the petitioner, and the learned Assistant Government Pleader for Civil Supplies. A perusal of the impugned order shows that the value of the PDS rice of 101.08 qtls., and 296 empty bags is estimated at Rs.2,03,130/- applying the open market rate. Under second proviso to Section 6-A(1) of the Essential Commodities Act, 1955 (for short ‘the Act’), in the event of confiscation of a vehicle, its owner has an option to pay the value of the seized stock. Therefore, the petitioner’s liability will be restricted to Rs.2,03,130/-, even if his vehicle is liable for confiscation. In such view of the matter, I do not find any justification for respondent No.1 in directing furnishing of bank guarantee for Rs.3,16,960/- instead of Rs.2,03,130/- representing the market value of the seized rice and the empty bags. For the above-mentioned reasons, the impugned order of respondent No.1 is modified with the direction to respondent No.1 to release the lorry to the petitioner, subject to his furnishing bank guarantee for a sum of Rs.2,03,130/- (Rupees two lakh three thousand one hundred and thirty only), which shall be subject to the result of the proceedings under Section 6-A of the Act. Subject to the above direction, the writ petition is disposed of. As a sequel to disposal of the writ petition, W.P.M.P.No.40356 of 2010 filed by the petitioner for interim relief is disposed of as infructuous. (C.V.NAGARJUNA REDDY, J) Date: 16.12.2010 VGB