Allowed

Kovvuru Boatsmen Coop Society v. The Government of Andrha Pradesh

Telangana HC24 Feb 2011WP/5554/2010

Case brief

AI extract

What is this about?

This court held that a registered Boatsmen Society entitled to a 10% bid concession under Rule 9-C(1) of the A.P. Minor Mineral Concession Rules, even if the auction involved only other societies without outside participation.

What did the court decide?

The respondents were directed to extend the benefit of 10% concession on the highest bid amount offered by the petitioner for the Reaches in question.

Kovvuru Boatsmen Coop Society Vs The Government of… — Company and Corporate | Telangana HC (2011)

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THE HON’BLE SRI JUSTICE N.V. RAMANA

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W.P. Nos. 5552, 5553 and 5554 of 2010

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Common order:

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The petitioner, namely M/s. Kovvuru Boatsmen Co-op. Society (hereinafter referred to as “Boatsmen Society”), stood as highest bidder, for Vadapalli, Gutala and Kovvuru Reaches for a period of two years, in the auction conducted on 17.08.2009, pursuant to the auction notification dated 28.07.2009. According to the petitioner, as per one of the conditions of the auction notice dated 28.07.2009, which is incorporated in tune with Rule 9-C(1) of the A.P. Minor Mineral Concession Rules (hereinafter referred to as ‘the Rules’), as amended vide G.O. Ms. No. 84, Industries and Commerce Department, dated 10.04.2010, they being registered Boatsmen

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Co-operative Society, are entitled to the benefit of 10% concession on the highest bid amount offered, and the action of the respondents, in not extending the said benefit, is illegal and arbitrary Hence, the petitioner filed these writ petitions seeking directions to the respondents to extend the benefit of 10% concession on the highest bid amount offered by them, as provided under Rule 9-C(1) of the Rules.

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The respondents did not file any counter. However, the learned Government Pleader for Mines and Geology, based on the written instructions from the Director of Mines and Geology, submitted that even though the petitioner is the highest bidder, but they are not entitled to the benefit of 10% concession of the bid amount offered by them. He contended that Rule 9-C has been introduced in the Rules, to enable the local Boatsmen Societies participate in the auction-cumtenders on par with other outside agencies or high profile individuals, but since the entire bidding, was done amongst the Boatsmen Societies, and no other outside agency or high profile individual participated in the auction, the petitioner, even though stood as the highest bidder in the said auction, is not entitled to the benefit of 10% concession on the highest bid amount offered. Hence, he submitted that no fault can be found with the action of the respondents in not extending the benefit of 10% concession to the petitioner on the bid amount offered by them for the Reaches in question.

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Heard the learned counsel for the petitioner and the learned Government Pleader for Mines and Geology for the respondents.

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According to the petitioner, they being a registered Boatsmen Society, and having stood as highest bidder, in the auction conducted by the respondents on 17.08.2009 in respect of the Reaches in question, as per Rule 9-C(1) of the Rules and one of the conditions of the auction notice dated 28.07.2009, which is incorporated in tune therewith, are entitled to the benefit of 10% concession on the highest bid amount offered by them. However, the learned Government Pleader for Mines and Geology appearing on behalf of the respondents contends that Rule 9-C(1) of the Rules, has been introduced to enable the local Boatsmen Societies participated in the auction on par with other outside agencies or high profile individuals, and as the auction was conducted only amongst Boatsmen Societies and no outside agency or high profile individual participated in the auction, and the petitioner themselves being the highest bidder in the auction, are not entitled to the benefit of 10% concession on the highest bid amount offered.

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Though the respondents have taken a stand that the petitioner is not entitled to the benefit of 10% concession on the highest bid amount offered, the fact remains, a perusal of Rule 9-C(1) of the Rules, would make it clear that in the award of Reaches, preference will be given to registered Boatsmen Societies by allowing 10% concession on the highest bid/tenderd amount offered by them in the auction. To the very same effect, the respondents have incorporated a condition in the auction notice dated 28.07.2009, providing for the benefit of 10% concession on the highest bid amount offered. Neither Rule 9-C(1) of the Rules nor the condition in the auction notice dated 28.07.2009, provides that the benefit of 10% concession on the highest bid amount offered, will not be extended to the highest bidder, if the auction is conducted only amongst the Boatsmen Societies without the participation of any outside agency or high profile individual. That being so, merely because the petitioner stood as highest bidder in the auction conducted amongst the Boatsmen Societies, is no ground for the respondents to deny the petitioner the benefit of 10% concession on the highest bid amount offered. In S.V.B.L.C. C-op. Society Ltd. v. District Panchayat Office r^[1] , this Court held that when the Rules

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stipulate conditions providing for concessions, they same cannot be denied on the ground that the society was financially sound and could compete with the participants and emerged as highest bidder.

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Though the learned Government Pleader for Mines and Geology submitted, realizing the defect in Rule 9-C(1) of the Rules, the Government, is taking steps to amend the same, the fact remains, he fairly admitted that as on today, Rule 9-C(1) of the Rules, has not been amended and it is still in existence as it is without any change. As long as Rule 9-C(1) exists in the Rules, without any amendment or change, so as to deny the benefit of 10% concession on the highest bid amount offered, if the auction is conducted only amongst the registered Boatsmen Societies, I am of the considered opinion that the respondents are not entitled to deny the benefit of 10% concession on the highest bid amount offered by the petitioner for the Reaches in question. Therefore, the action of the respondents, in refusing to extend the benefit of 10% concession to the petitioner on the highest bid amount offered by them, is illegal and arbitrary.

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In the result, the writ petitions are allowed. The respondents are directed to extend the benefit of 10% concession on the highest bid amount offered by the petitioner for the Reaches in question, as provided in Rule 9-C of the Rules and the condition in the auction notice dated 28.07.2009. No costs.

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_________________ N.V. RAMANA, J.

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Dated: 24^th February, 2011 KSR

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[1] AIR 2003 AP 471

Kovvuru Boatsmen Coop Society v. The Government of Andrha Pradesh

Case brief

What is this about?

What did the court decide?

Kovvuru Boatsmen Coop Society v. The Government of Andrha Pradesh

Case brief

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