IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD FRIDAY, THE TWENTIETH DAY OF FEBRUARY TWO THOUSAND AND NINE PRESENT THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE C.V.NAGARJUNA REDDY WRIT APPEAL NO : 1868 of 2001 (Writ Appeal under Clause 15 of the Letters Patent against the Order dated ______ in WP NO : 5804 OF 1993 on the file of the High Court.) Between: ..... APPELLANT AND .....RESPONDENT Counsel for the Appellant: GP FOR INDUSTRIES & COMMERCE Counsel for the Respondent: MR.C.RAGHU The Division Bench of this Court made the following : (Judgment follows 2nd page) THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE C.V.NAGARJUNA REDDY WRIT APPEAL NO : 1868 of 2001 JUDGMENT : (Per the Hon’ble Mrs. Justice T. Meenakumari) The writ appeal is filed against the orders dated 28-9-2001 passed by the learned single Judge in WP.No.5804 of 1993, whereby he disposed of the writ petition, which was filed for a mandamus to direct the respondents therein to refund the amount of Rs.1,15,390/- to the petitioner which had been deposited as per clause 2 of the terms and conditions of the auction framed under Rule 9 {c} of the A.P.Minor Minerals Concession Rules, 1966 in connection with the auction of the Reach No.24 in Krishna river as per the auction notice dated 30-11-1992 with interest @ 12% p.a., and the learned single Judge directed the respondents therein to refund Rs.1,04,900/- with simple interest @ 12% p.a. from one month after the date of receipt of the petitioner’s representation on 18-4-1993 i.e., from 18-5-1993 till the date of payment. 2. The learned Government Pleader for Industries contended that as per Rule 90 (3) of the-then existing A.P.Minor Mineral Concession Rules, the respondent-writ petitioner failed to pay the minimum bid amount within 24 hours of the date of auction and the amounts paid thereon are forfeited and the respondent-writ petitioner had not challenged the rules. Secondly, the respondent-writ petitioner has not furnished bank guarantee for the minimum bid amount of Rs.1,18,200/- but admitted for an extent of Rs.50,000/- only for which the order of the learned single Judge for refund of Rs.1,04,900/- is contrary to the facts of the case. 3. Even though the contention is raised before us that the learned single Judge erred in directing the appellants to refund Rs.1,04,900/- but the Memo.No.3613/Mines I (2)/S2-3, Industries and Commerce (Mines-I) Department, dated 17-3-1993, wherein clarification of forfeiture of bank guarantee in the case of defaulters of sand quarry bidders are furnished. Even in the event of any default committed by the successful bidders in violation of Rule 9-G (3) of the AP Minor Minerals Concession Rules, 1966, the bank guarantee furnished by the bidders cannot be encashed or forfeited to Government. 4. On the other hand, Sri C.Raghu, the learned counsel for the respondent submitted that in view of issuance of Memo.No.3613/Mines I (2)/S2-3, Industries and Commerce (Mines-I) Department, dated 17-3-1993, the appellants cannot forfeit the amount deposited by the respondent-writ petitioner except 10% of the bid amount paid by him as per condition 2 (b) of the conditions. 5. But the learned Government Pleader has argued that the learned single Judge ought not to have granted interest @ 12% p.a., on the amount of Rs.1,04,900/- in view of the fact that the aforesaid Memo.No.3613/Mines I (2)/S2-3, Industries and Commerce (Mines-I) Department, dated 17-3-1993 do not speak of the grant of interest. 6. In view of the rival contentions raised in the writ appeal, we are of the opinion that the order of the learned single Judge can be modified and the respondent is entitled to only Rs.1,04,900/- without any interest. The appellants are directed to refund the amount of Rs.1,04,900/- to the respondent within a period of four weeks from the date of receipt of a copy of this order. 7. The writ appeal is accordingly allowed to the extent indicated above. No costs. JUSTICE T.MEENA KUMARI JUSTICE C.V.NAGARJUNA REDDY 20-02-2009. I s L .......REGISTRAR To 1. 2.2 CD copies Form-NIC-OGS/WA { }