THE HON’BLE SRI JUSTICE L.NARASIMHA REDDY WRIT PETITION No.28368 of 2008 ORDER: The Government conducted auction of different extents of land in various survey numbers in certain villages of Ranga Reddy District on 17.09.2003. Land in survey No.117/4 of Tattiannaram village of Hayathnagar Mandal was divided into plots, two acres each. The petitioner emerged as the highest bidder for a plot of two acres, by offering a sum of Rs.93,00,000/-. In addition to depositing Rs.7,50,000/- towards Earnest Money Deposit (E.M.D), the petitioner is said to have paid a further sum of Rs.15,75,000/- on the date of auction. The bid was confirmed in his favour vide proceedings, dated 20.09.2003. He was under obligation to pay the balance consideration within one month. On coming to know that there existed some third party claims over the land, the petitioner got issued a public notice on 11.10.2003. M/s. A.Balaiah, A. Bheema Reddy, Babu Miya and others got issued a reply through telegram, dated 12.10.2003, making their claims. Thereafter, they filed W.P.Nos.19310, 19296 and 19556 of 2003 and the same were dismissed at the admission stage. W.A.Nos.2048 and 2190 of 2003 filed by them were allowed and the writ petitions were posted for admission on 08.12.2003. Interim orders directing maintenance of status quo were passed. The petitioner states that interim orders directing maintenance of status quo were vacated on 17.07.2007 and soon thereafter, he offered to pay the balance consideration. Through Memo, dated 09.11.2008, the Joint Collector, Ranga Reddy District, requiring the petitioner to deposit the balance of Rs.69,75,000/- with interest at the rate of 20% per annum with effect from 21.10.2003. The petitioner feels aggrieved by the action of the respondents in levying interest. He contends that the delay in payment of balance consideration is not on account of reluctance or refusal on his part; but due to pendency of the proceedings, and operation of order of status quo granted by this Court. In their counter-affidavit, the respondents narrated the events that have taken place ever since the land was put to auction. It is stated that on account of delay in payment of consideration, the Government sustained loss and that levy of interest accords with the conditions of auction. Heard the learned counsel for the petitioner and the learned Government Pleader for revenue. There is no dispute that the petitioner emerged as the highest bidder for a plot of Acs.2.00 and his bid of Rs.93,00,000/- was accepted. He was required to pay the balance consideration of Rs.69,75,000/- within one month from the date of acceptance of the bid. The petitioner naturally expects that the land for which he emerged as the highest bidder is free from encumbrances. He got verified the matter from that angle and on coming to know that some claims were being made, he issued a public notice. Not only claims were received from certain individuals, but also writ petitions were filed in quick succession. Though the writ petitions were dismissed at the admission stage, the Division Bench has set aside the order of dismissal. The result is that three writ petitions that were filed in this connection were admitted and interim orders were granted. It was only on 17.07.2007, that too, with the intervention of the petitioner that the interim orders granted in the writ petitions were vacated. In this scenario, it cannot be said that there was any reluctance, refusal or default on the part of the petitioner to pay the balance of consideration. The very fact that the writ petitions were filed by the third parties and interim orders were passed therein, discloses that the matter was not that clear, as presented by the respondents. There would have been justification for the respondents to insist on payment of interest, had there not been any dispute in relation to the land. Therefore, the writ petition is allowed and the condition imposed by the respondents in Memo, dated 09.11.2008, as regards payment of interest, is set aside. It is directed that in case the petitioner deposits the balance of consideration within four (4) weeks from today, the amount shall not carry interest. In default, the amount shall carry interest at the rate of 15% per annum with effect from 17.07.2007 or it shall be open to the respondents to take necessary action as contemplated under the conditions of auction. There shall be no order as to costs. _______________________ L.NARASIMHA REDDY, J Dt:11.02.2010 kdl