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2010 DIGILAW 639 (KAR)

Zilla Panchayat, Hassan v. Brahmanand P. K. & Ors

2010-05-25

B.V.NAGARATHNA

body2010
Judgment N. K. Patil, , J.—These appeals are filed by the appellant-Zilla Panchayat Hassan, against the common order dated 20th September, 2005 passed by the learned single Judge in W.P.Nos. 45195/2004 and connected matters, so far as it relates to awarding interest at 18% p.a., from the date of deposit up to the date of payment. 2. The brief facts of the case are: Respondents 1 to 4 herein have filed Writ Petition No. 45195/2004 and connected matters before the learned single Judge of this Court seeking appropriate reliefs, contending that, they are the auction purchasers having offered the highest bid for purchase of shop premises notified for auction by the Zilla Panchayat on 28.7.1999 and they have deposited the entire bid amount. The Zilla Panchayat instead of issuing confirmation letter after accepting the highest bid amount, has passed a resolution and issued the impugned endorsement, cancelling the auction and the bid and directed the respondents to take back the bid amount deposited by them. The said petitions had come up for consideration before the learned single Judge on 20th September, 2005. The learned single Judge has allowed the said writ petitions in part and directed the Zilla Panchayat to refund the amounts received by it from the respondents together with interest at 18% p.a., from the date of deposit up to the date of payment. Being aggrieved by the said order, the Zilla Panchayat has filed these appeals, so far as it relates to directing it to pay the interest at 18% p.a., from the date of deposit up to the date of payment and seeking appropriate reliefs, as stated supra. 3. We have heard the learned counsel for the appellant and learned counsel for respondents at considerable length of time. 4. After careful perusal of the impugned order, it emerges that, the learned single Judge is not justified in awarding the interest at 18% p.a., from the date of deposit up to the date of payment. The interest awarded at 18% p.a., is on higher side. The appellant is the Zilla Panchayat and it has every right to confirm or reject the highest bid or only accept the highest bid without issuing confirmation order by the competent authority and also to pass such resolutions and to issue endorsement. The interest awarded at 18% p.a., is on higher side. The appellant is the Zilla Panchayat and it has every right to confirm or reject the highest bid or only accept the highest bid without issuing confirmation order by the competent authority and also to pass such resolutions and to issue endorsement. But, the appellant being the statutory authority, is liable to pay the interest for the delayed period and admittedly, there is a delay of nearly 4 to 5 years on the part of the appellant in returning the bid amount to the respondents. Therefore, having regard to the facts and circumstances of the case, in the interest of justice and also to safeguard the interest of both the parties, we are of the considered view that, the interest awarded by the learned single Judge is liable to be reduced from 18% p.a., to 9% p.a., and the impugned order is liable to be modified to that extent. 5. For the foregoing reasons, these appeals filed by the appellant are partly allowed and stand disposed of, by modifying the impugned order of the learned single Judge by reducing the rate of interest from 18% p.a., to 9% p.a., from the date of deposit up to the date of payment. 6. Appeal partly allowed.