1 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 22-11-2011 CORAM: THE HONOURABLE MR. JUSTICE V. RAMASUBRAMANIAN W.P.(MD)No.11937 of 2011 and M.P.(MD) Nos.1, 2 and 3 of 2011 M.A.M.Mohamed Meera .. Petitioner vs. The Regional Forest Officer, Thillainagar, Trichy District. .. Respondent Writ Petition filed under Article 226 of the Constitution of India, praying for the issue of a Writ of Certiorarified Mandamus, calling for the records relating to the impugned order dated 20.8.2011 in Se.Mu.Aa.No.2850/2010/The 2 and quash the same and consequently direct the respondent to refix the auction value by considering the representation of the petitioner dated 18.8.2011. For Petitioner : Mr.J.Anandkumar For Respondent : Mr.K.P.Krishnadoss, Government Advocate O R D E R The petitioner has come up with the above writ petition, challenging an order by which the Earnest Money deposited by him in an auction sale of trees by the Forest Department, was forfeited. 2. Heard Mr.J.Anandkumar, learned counsel for the petitioner and Mr.K.P.Krishnadoss, learned Government Advocate for the respondent. 3. The Divisional Forest Officer conducted an auction sale for the felling and removing of Karuvel and Velikkaruvel trees in Mooranikkulam, Manapparai, Social Forestry Range, Tiruchirappalli Social Forestry Division. The petitioner participated in the auction and quoted the highest bid of Rs.3,47,985/-. The petitioner remitted a total amount of Rs.1,16,000/-. He was supposed to have paid the balance amount on or before 13.3.2011. Since he did not pay the amount, a show cause notice threatening to cancel the auction was sent to him. But the letter returned without being served on the petitioner. Therefore, several letters and a telegram were sent. But the telegram alone was served on the petitioner. Finding no response from the petitioner, the Divisional Forest Officer cancelled the auction and ordered the forfeiture of the total amount paid by the petitioner. Challenging the said order, the petitioner has come up with the above writ petition. https://hcservices.ecourts.gov.in/hcservices/ 2 4. At the outset, the confirmation letter dated 28.1.2011 shows that the Earnest Money received from the petitioner was only Rs.34,800/-. Moreover, the terms and conditions of auction shows that there are two options left open to the respondent if the highest bidder failed to remit the auction amount within the time stipulated. One option open to the respondent was to cancel the auction and forfeit the advance. Another option is to collect penal interest for the balance amount due. The respondent has chosen to adopt the former course of option. 5. When the writ petition came up for hearing on the last occasion, I directed the learned Government Advocate to find out the present cost, in order to see whether the decision taken by the respondent to cancel the auction was economically viable for the respondent. The learned Government Advocate submitted on instructions that the value of the trees may be only Rs.3,60,000/- as on date. Therefore, it is not known whether the next auction will actually benefit the respondent economically. 6. On the other hand, the recovery of interest and penal interest from the petitioner for the balance amount due and allowing him to take the trees, appear to be more beneficial to the respondent. Therefore, I am of the view that the respondent can be directed to take the second option available to him under Clause 7(M) of the tender conditions. 7. In view of the above, the writ petition is disposed of, setting aside the impugned order of the Divisional Forest Officer, Social Forestry Division, Tiruchirappalli and directing him to allow the petitioner to take the trees after paying the balance bid amount, together with (i) normal savings bank rate of interest as well as (ii) penal interest at 13% p.a., on the balance bid amount from 30.3.2011 upto the date of actual payment. The petitioner shall pay the balance bid amount together with both these interests (normal as well as penal) within a period of 4 weeks from the date of receipt of a copy of this order. If the petitioner fails to pay the above amounts within 4 weeks as aforesaid, the forfeiture of the amount of Rs.1,16,000/- by the impugned order, will hold good. No costs. Consequently, connected miscellaneous petitions are closed. Sd/- Deputy Registrar (Accounts) /True Copy/ Assistant Registrar To The Regional Forest Officer, Thillainagar, Trichy District. +1 CC to J.Anandkumar, Advocate (SR.No.41303) W.P.(MD)No.11937 of 2011 22.11.2011 Svn NSV/7.12.11/2P/3C https://hcservices.ecourts.gov.in/hcservices/