Judgment The Assistant Director of Mines and Geology, Nellore, the 4th respondent herein, issued a notification, dated 16.06.2012, proposing to conduct auction for mining lease of sand quarries, at different places in Nellore District on Penna River. The petitioner submitted his tender for four Reaches. Reach No.40, at Minagallu Village, Buchireddypalem Mandal, Nellore District, was one such and the minimum bid was mentioned at Rs.1,44,32,400/-. The auction was conducted, on 01.08.2012. The amount quoted by the petitioner, being Rs.7,90,00,000/-was found to be the highest. The District Collector, Nellore, the 2nd respondent herein, who is the confirming authority, passed orders of confirmation, on 04.08.2012, on the basis of a report submitted by the 4th respondent. However, two days thereafter, the 2nd respondent cancelled the order of confirmation, on the ground that he did not deposit 25% of the amount within two days. The petitioner challenges the same, on several grounds. It is pleaded that the two days time ought to have been reckoned from the date of confirmation i.e. 04.08.2012, and that the petitioner was not put on notice, before the order of cancellation was passed. On behalf of respondents, a counter-affidavit is filed. It is stated that the auction was conducted and orders are passed strictly in accordance with Rule 9-I(1) of the A.P. Minor Mineral Concession Rules, 1966 (for short ‘the Rules’). According to them, 25% of the bid amount was required to be deposited within two days from the date of finalisation of auction, and the remaining amount of 75% was required to be deposited within seven days from the date of confirmation. They submit that the petitioner did not fulfil the condition, and accordingly, the impugned order was passed. Heard Sri N. Subba Reddy, learned Senior Counsel for the petitioner, learned Government Pleader for Mines and Geology, for respondents 1 and 4 and learned Government Pleader for Revenue for respondents 2 and 3. The Rules prescribe the procedure to be followed, for grant of mining leases. Separate set of provisions, being Rule 9(i) to (iv), govern the grant of mining leases for sand. The auction was conducted for the reaches, referred to above, on 01.08.2012, and it is a matter of record that the petitioner emerged as the highest bidder. The procedure adopted by the respondents provides for confirmation of the bids, by a different authority. Separate set of provisions, being Rule 9(i) to (iv), govern the grant of mining leases for sand. The auction was conducted for the reaches, referred to above, on 01.08.2012, and it is a matter of record that the petitioner emerged as the highest bidder. The procedure adopted by the respondents provides for confirmation of the bids, by a different authority. The auction was conducted by the Joint Collector and the Authority to confirm the auction is the 2nd respondent. Rule 9-I of the Rules reads: “Deposit of the lease amount and execution of lease agreement: (1) When the tender/bid is knocked down by the competent authority, the successful tenderer or bidder shall remit to Zilla Parishad Head of Account a sum equivalent to 25% of the knocked down amount along with payment of prevailing Income Tax and submit the same to the Asst. Director of Mines and Geology within two working days. This shall be in addition to the Earnest Money Deposit amount paid for the said Reach/Mandal. (2) The successful tenderer/bidder on receipt of the order of the confirmation shall remit the remaining 70% of the knocked down amount to the Zilla Parishad Head of Account and remaining 5% of the total knocked down amount to the State Head of Account as indicated in the order of confirmation and submit the challans to the concerned Asst. Director of Mines and Geology along with payment of prevailing Income Tax and a security deposit of 10% of the knocked down amount subject to the minimum of Rs.1,00,000/-(Rupees One Lakh only) or equivalent to bid amount which ever is less through National Saving Certificate duly pledged in favour of Governor or Bank Guarantee issued from any Nationalized Banks and execute the lease deed with the Assistant Director of Mines and Geology concerned in Form G-I on stamped paper as per the Registration and Stamp Act within seven days from the date of confirmation order. The lease period shall commence with effect from the date of the execution of the lease deed. (3) The successful Bidder is liable to pay any other Taxes payable to the Government as per Statutory Provisions of various Acts and Rules prevailing. The lease period shall commence with effect from the date of the execution of the lease deed. (3) The successful Bidder is liable to pay any other Taxes payable to the Government as per Statutory Provisions of various Acts and Rules prevailing. (4) If the successful tenderer or Bidder fails to pay either 25% of the knocked down amount within two working days or the remaining knocked down amount within the specified time as mentioned in the confirmation order, the amount so far paid by the successful tenderer/bidder shall be forfeited to the Government by the confirmation authority. (5) In the event, the first bidder did not turn up for further proceedings of execution of a Reach/Mandal by paying the remaining amount, the same Reach/Mandal will be offered to second highest tenderer/bidder provided 25% of minimum bid deposited in the EMD is retained with the Assistant Director of Mines and Geology concerned and such tenderer/bidder is willing to pay the highest knock down amount. Such facility shall be extended to the 3rd bidder in the descending order if the 2nd highest bidder fails to comply with the payment of the highest knock down amount”. The step for confirmation of the bid is indicated in sub-rule (ii) of Rule 9-I of the Rules. A casual reading of the provision gives an indication that 25% of the bid amount must be deposited within two days from the date on which the auction is held and remaining, within seven days after the order of confirmation is passed. In the instant case, the order of confirmation was passed on 04.08.2012. By that time, the two days period mentioned in Rule 9-I(1) of the Rules had elapsed. In case the period were to have been reckoned from the date on which the auction was held, the 4th respondent ought to have waited till the expiry of that period and submitted proposals for confirmation, only after 25% of the amount is deposited within two days. However, he submitted a report on 02.08.2012, and acting on the same, the 2nd respondent passed orders of confirmation on 04.08.2012. By that time, 25% of the amount was not deposited. The petitioner was, obviously, under the impression that the starting point for reckoning two days period for deposit of the amount is, the date of confirmation. However, he submitted a report on 02.08.2012, and acting on the same, the 2nd respondent passed orders of confirmation on 04.08.2012. By that time, 25% of the amount was not deposited. The petitioner was, obviously, under the impression that the starting point for reckoning two days period for deposit of the amount is, the date of confirmation. Within two days from the date on which the order of confirmation is passed, the 2nd respondent issued the impugned proceedings cancelling his earlier orders. No notice was issued to the petitioner and there is a clear infraction of principles of natural justice. The very fact that the process of confirmation is provided discloses that the Rule making authority did not attach finality to the bids that emerged on the date of auction; and it is only when the confirming authority is satisfied as to the adequacy of the bids, absence of any collusion among bidders, compliance with the Rules, sufficiency of publicity etc., that he can confirm the auction. Rule 10 of the Rules deals with the auction, in relation to other minerals. A perusal of Rule 10-D of the Rules provides valuable guidance as regards confirmation of the bids, in the case of leases for sand also. Rule 10-E(1) reads: “Deposit of knocked down amount: (1) The successful Tenderer/Bidder shall pay the knocked down amount in four quarterly instalments. The amount equivalent to 25% of the knocked down amount towards first instalment shall be paid in the Government Treasury within the immediate next two working days and produce challan to the Assistant Director.” The remaining Rules stipulate the procedure for deposit of the balance of 75% within seven days. A view point emerges to the effect that the starting point for counting the two days, or seven days, as the case may be, is the date on which the confirmation takes place. There cannot be one event for counting two days period, and another event for counting the seven days. That, in fact, was the understanding of the 4th respondent also. The same is evident from the order dated 04.08.2012 passed by the 2nd respondent. There cannot be one event for counting two days period, and another event for counting the seven days. That, in fact, was the understanding of the 4th respondent also. The same is evident from the order dated 04.08.2012 passed by the 2nd respondent. The relevant portion reads: “…Further the Assistant Director of Mines and Geology, Nellore informed that as per Rule 9-I of APMMC rules, the successful bidder/Tenderer shall pay the 25% of the knocked down amount and the prevailing I.T. thereon within two working days and the remaining 75% knocked down amount with the prevailing I.T. there within 7 days from the date of confirmation orders and also submit the necessary other payments/documents for execution of the lease deed.” Respondents 2 and 4 were of the clear view that the starting point to reckon two days, or the seven days, as the case may be, is from the date of confirmation. It is in that context, that the order of confirmation was passed, four days after the auction, though the amount of 25% was not deposited within two days. Viewed from any angle, the impugned order cannot be sustained in law. The writ petition is accordingly allowed and the impugned order is set aside. It is directed that, in case the petitioner deposits the entire amount, within one week from today i.e. on or before 03.12.2012, the respondents shall be under obligation to take further steps for execution of lease deed. In default, the impugned order shall remain. There shall be no order as to costs. The miscellaneous petition filed in this writ petition shall also stand disposed of.