The Regional Manager, vs S.K. Rahim
2023 Latest Caselaw 2841 Tel

   THE HON'BLE THE CHIEF JUSTICE ALOK ARADHE

                               AND

    THE HON'BLE SRI JUSTICE N.V.SHRAVAN KUMAR


                WRIT APPEAL No.680 of 2006


JUDGMENT: (Per the Hon'ble the Chief Justice Alok Aradhe)


      Mr. Gaddam Srinivas, learned Standing Counsel for the

appellant.

      Mr. C.Ramachandra Raju, learned counsel for the

respondent.

2. This intra court appeal arises from order dated

05.02.2004 passed by learned Single Judge in W.P.No.16438

of 1997, by which writ petition preferred by the respondent

(hereinafter referred to as 'petitioner') has been allowed.

3. In order to appreciate the grievance of the

appellant, relevant facts need to be mentioned.

4. The appellant namely Andhra Pradesh State Road

Transport Corporation (hereinafter referred to as

'Corporation') issued a notice inviting tenders on 28.11.1996 ::2::

for allotment of open spaces or constructed shops as the case

may be at various bus stations in Karimnagar region. In

pursuance of the aforesaid notice inviting tenders, the

petitioner submitted the tender for opening of plastic and

leather goods shop in the Karimnagar bus station in an open

space of 5 x 8 feet. The petitioner along with his tender

offered to pay a licence fee of Rs.6,254.60 Ps. The tender

submitted by the petitioner was accepted by the Deputy Chief

Traffic Manager, Karimnagar Region and an agreement was

executed between the parties on 14.02.1997. The petitioner,

after acceptance of the tender, submitted a representation on

19.02.1997, in which he made a request that he be allotted a

place at Platform No.19. However, the aforesaid

representation of the petitioner was rejected by an order

dated 27.02.1997. Thereafter a show cause notice dated

25.06.1997 was sent to the petitioner asking him to show

cause as to why the licence granted to the petitioner on

14.02.1997 be not cancelled. The Corporation however by an

order dated 15.07.1997 directed cancellation of licence

awarded to the petitioner and forfeiture of the earnest money

of Rs.12,509.20 Ps.

::3::

5. The petitioner thereupon challenged the aforesaid

show cause notice dated 25.06.1997 in a writ petition namely

W.P.No.16438 of 1997. Learned Single Judge by an order

dated 05.02.2004 allowed the writ petition and directed the

Corporation to refund the amount of Rs.12,509.20 Ps. along

with interest at the rate of 9%. In the aforesaid factual

background, this appeal has been filed.

6. Learned counsel for the appellant submitted that

the earnest money deposit of the petitioner was forfeited as

he had violated Clause 30 of the agreement in as much as

the petitioner did not commence the business within a period

of 90 days.

7. On the other hand, learned counsel for the

respondent has supported the order passed by the learned

Single Judge.

8. We have considered the submissions made by

learned counsel for the parties and have perused the record.

::4::

9. From the perusal of the notification dated

28.11.1996, it is evident that in the aforesaid notification, the

particulars of the open spaces or constructed shops have not

been specified. The petitioner had submitted a tender to run

a plastic and leather goods shop in the Karimnagar bus

station in an open space of 5 x 8 feet. On acceptance of his

tender, the petitioner had submitted a representation on

19.02.1997 stating that he be allotted an open place at

Platform No.19. However, instead of allotting him a place at

Platform No.19, the representation submitted by the

petitioner was rejected by the Corporation on 27.02.1997.

The Corporation ought to have suggested the petitioner any

other alternative place where he set up his shop. However,

instead of offering him any alternative shop, by an order

dated 15.07.1997, the earnest money deposit representing

two months licence fee amounting to Rs.12,509.20 Ps. was

forfeited by the petitioner. The aforesaid action of the

Corporation is unjust and unfair. Learned Single Judge has,

therefore, rightly directed the Corporation to refund the

earnest money deposit amount of Rs.12,509.20 Ps. to the

petitioner along with interest at the rate of 9%. However, the ::5::

rate of interest is on the higher side. The same is reduced to

6%.

10. The Corporation is directed to refund the earnest

money deposit amount of Rs.12,509.20 Ps. to the petitioner

along with interest at the rate of 6%.

11. To the aforesaid extent, the order dated

05.02.2004 passed by learned Single Judge in W.P.No.16438

of 1997 is modified.

12. In the result, the Writ Appeal is disposed of.

There shall be no order as to costs.

Miscellaneous applications, if any pending, shall stand

closed.

_______________________________ ALOK ARADHE, CJ

_______________________________ N.V.SHRAVAN KUMAR, J

Date: 03.10.2023 KL