Katyani Contractor Pvt Ltd. v. The State Of Bihar And ORS
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.6708 of 2017 ===========================================================
1. Katyani Contractor Pvt Ltd. having its office at Pareo, Bihta, P.S. - Bihta, District - Patna, through its Director, Ashok Kumar Son of Late Ram Chandra Sah Resident of Village - Pareo, Bihta, P.S. - Bihta, District - Patna. .... .... Petitioner/s
Versus
1. The State of Bihar.
2. The Principal Secretary, Mines and Geology, Bihar, Patna.
3. The District Magistrate, Aurangabad.
4. The Assistant Director, Mines and Geology, Aurangabad. .... .... Respondent/s =========================================================== Appearance :
For the Petitioner/s : Mr. Sanjeev Kumar, Mr. Priya Ranjan, Mr. Amit Kumar Singh For the State : Mr. G.P. Ojha, GA VII For the Mines Dept. : Mr. Rajendra Prasad Singh =========================================================== CORAM: HONOURABLE MR. JUSTICE SHIVAJI PANDEY ORAL JUDGMENT Date: 08-08-2017 Heard learned counsel for the petitioner and learned counsel for the State as well as Mines Department. In the present case, petitioner is claiming for return of security amount of Rs.3,21,60,979/- as having been declared second highest bidder but even after lapse of two years neither money has been returned nor he has been extended offer to enter into an agreement.
An advertisement was published for auction of Block No.2 situated at Plot No.1269, Thana No.698, Mauza- Pachar measuring an area of 12.97 acres in the district of Aurangabad.
The land was placed for auction for mining lease. The petitioner and others have applied. Tender was opened and one K.P.S. Structure Pvt. Ltd. declared as highest bidder as offered Rs. 32,10,00,000/- whereas petitioner offered lesser amount. In terms of NIT the first person is required to enter into agreement with the State within 120 days, in failure, the offer will be extended to the second tenderer. In failure the Mining Department is required to go for a fresh tender. NIT also prescribes so long the agreement is not entered with highest tenderer security money of second tenderer will not be returned. It will be relevant to quote relevant part of the NIT:
vi vii
xi ii '
'
(SEIAA)
Admittedly in the present case the auction has been done in 2015 and after lapse of two years highest tenderer has not entered into agreement on some reasons or other, nor the petitioner has been offered to enter into an agreement. In such situation prayer has been made that either he should be extended lease of the property mentioned in the tender or the amount which is lying with the State should be returned, as blocking the money is causing immense loss of interest as well as heavy money has remained stagnant without any gain whereas learned counsel for the State submits that in terms of Clause 6(xi) money will be returned only after the agreement with the highest tenderer.
Learned counsel for the State has tried to impress upon this
Court as and when highest tenderer enter into agreement, that moment the money will be returned. But the State has placed reliance on one clause but ignored to place another clause of NIT. As per the NIT, agreement has to be materliazed within 120 days, in failure it will be extended to the second bidder. More than two years have passed even then the State has not extended the offer to the petitioner but resisting the money should not be released to the petitioner but in the interest of justice, if the State has not extended the offer to the petitioner even after 120 days which is normal period then the equity demands State cannot keep money thereafter, depriving him of his money beyond reasonable period cannot be approved, as he could have invested for proper return. In such view of the matter, this Court directs the State Government to pay the aforesaid amount along with 7% simple interest.
With the aforesaid observation this writ petition is disposed of.
Vinay/- (Shivaji Pandey, J) AFR/NAFR NAFR CAV DATE NA Uploading Date 25.8.2017 Transmission Date NA