THE HON'BLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY WRIT PETITION No.29344 OF 2021

ORDER:-

This writ petition is filed for Mandamus, declaring the action of 2nd respondent-Municipal Corporation in issuing impugned proceedings dated 03.12.2021 cancelling the tender granted in favour of the petitioner and issuance of public notification dated 03.12.2021 calling for fresh tenders, as illegal, arbitrary and unconstitutional and consequently sought direction to set aside the impugned proceedings dated 03.12.2021 and to direct the 2nd respondent to allow the petitioner to carryon his work as per contract granted in his favour by receiving the balance tender amount of Rs.9,83,000/-.

Pursuant to the notification issued by the 2nd respondent-Ananthapur Municipal Corporation calling for tenders to collect market fee for the period from 01.04.2021 to 31.03.2022, the petitioner has participated in the tender proceedings. He was declared as the highest bidder for a sum of Rs.67,83,000/-. He is required to deposit the said sum of Rs.67,83,000/- within seven days from the date of auction i.e. 31.03.2021. The petitioner has deposited a sum of Rs.58,00,000/- out of the total sum of Rs.67,83,000/-. However, he did not deposit the said sum of Rs.67,83,000/- within the stipulated period of one week. He is still due to deposit a sum of Rs.9,83,000/- towards tender amount. As the petitioner failed to deposit the said sum of Rs.9,83,000/-, the 2nd respondent-Municipal Corporation has cancelled the proceedings issued in favour of the petitioner and issued fresh notification, which is impugned in this writ petition on 03.12.2021

calling for fresh tenders. It appears that one Aslam became successful highest bidder and that he has deposited Rs.5,00,000/ towards part of the tender amount. He has to still deposit the remaining sum of Rs.10,00,000/- towards tender amount.

Therefore, aggrieved by the issuance of fresh notification dated 03.12.2021 and declaring the said Aslam as highest bidder, the petitioner is before this Court challenging the said notification and consequent proceedings seeking the reliefs as stated supra.
Heard learned counsel for the petitioner, learned Government Pleader for Municipal Administration for 1st respondent and Sri Kalava Suresh Kumar Reddy, learned Standing Counsel appearing for the 2nd respondent-Municipal Corporation.
Learned counsel for the petitioner would submit that the petitioner has already deposited substantial sum of Rs.58,00,000/- towards tender amount long back and that he is only due to deposit a sum of Rs.9,83,000/- towards balance amount and that he is ready to deposit the said money within the time granted by this Court. He would submit that if the petitioner is abruptly prevented from depositing the said amount to carry on his work of collecting market fee, that he would sustain substantial financial loss and thereby prayed to pass appropriate orders to protect his interest in the given facts and circumstances of the case.
Learned Standing Counsel for 2nd respondent-Municipal Corporation would submit that inspite of giving sufficient time, that the petitioner failed to deposit the balance sum of Rs.9,83,000/- and as such, the 2nd respondent is constrained to

cancel the proceedings in his favour and issued fresh notification and that a person by name Aslam became the highest and he has already deposited Rs.5,00,000/- and the process of issuing work order in his favour after depositing the remaining sum of Rs.10,00,000/- is in process, as such the petitioner is not entitled to any relief as sought for in the writ petition in the facts and circumstances of the case. Therefore, he would pray for dismissal of the writ petition.

The fact that the petitioner has deposited a substantial sum of Rs.58,00,000/- out of total sum of Rs.67,83,000/- is not in dispute. Even though the petitioner failed to deposit the said sum of Rs.58,00,000/- within the time stipulated, the 2nd respondent-Corporation allowed him to make delayed payments and accepted the same. Therefore, the delay if any in depositing the said sum of Rs.58,00,000/- stands condoned. Only a sum of Rs.9,83,000/- is due to be deposited by the petitioner towards balance sum of the tender amount. Now the petitioner has come forward to deposit the said sum of Rs.9,83,000/- within the time that may be fixed by this Court. In that view of the matter, the interests of the 2nd respondent-Corporation would also be protected as they are only concerned with the collection of revenue to the Municipal Corporation. As no work order has been yet given to said person by name Aslam, who stood as highest bidder as per the second notification, no loss would be caused to him also if the amount of Rs.5,00,000/- that was deposited by him is returned to him.
Therefore, in the facts and circumstances of the case, this Writ Petition is disposed of with a direction to the petitioner to deposit the balance amount of Rs.9,83,000/- by 5-00 p.m. tomorrow i.e. on 14.12.2021. If the petitioner deposits the said sum of Rs.9,83,000/- by 5-00 p.m. on 14.12.2021, the proceedings taken place pursuant to the impugned notification dated 03.12.2021 stands cancelled and the sum of Rs.5,00,000/ deposited by the highest bidder by name Aslam, shall be returned to him. If the petitioner fails to deposit the said sum of Rs.9,83,000/- within the time stipulated by this Court, the impugned notice dated 03.12.2021 and the proceedings taken place pursuant to the said proceedings stands restored and work order shall be issued in favour of the highest bidder Aslam. There shall be no order as to costs.

Miscellaneous Petitions, if any pending, in this Writ Petition, shall stand closed.

_____________________________________________ JUSTICE CHEEKATI MANAVENDRANATH ROY

Date : 13-12-2021

Note: Issue CC today (B/o) ARR