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since 1985 practicing as advocate in both civil & criminal laws. This blog is only for information but not for legal opinions
Showing posts with label 2003. Show all posts
Showing posts with label 2003. Show all posts

Saturday, January 4, 2014

Sec.82 of A.P.H.R.I&En. Act , Andhra Pradesh Charitable and Hindu Religious Institutions & Endowments Lease of Agricultural Lands Rules, 2003 - Public auction sale of temple lands - Claim by lease - Under sec. 82 (2) every landless poor person has to make an application before commissioner else from 28th May 1987 , all leases deemed to be cancelled - ever after the framing of rule in 2003 no application was made - the writ petitioners can not be considered as landless poor for claiming exemption either under sec.82(2) or under the rule 3(1) - Writ petitions are dismissed = Duvvur Niranjan Reddy, S/o Late Duvvur Adinarayana Reddy, Nellore...... Petitioner The Executive Officer, Sri Kailaslanatha Swamy Temple, Brahmadevam Village, Muthukur Mandal, Nellore District and another....RESPONDENTS = published in judis.nic.in/judis_andhra/filename=10482

  Sec.82 of A.P.H.R.I&En. Act , Andhra Pradesh Charitable and Hindu Religious Institutions & Endowments Lease of Agricultural Lands Rules, 2003 - Public auction sale of temple lands - Claim by lease - Under sec. 82 (2) every landless poor person has to make an application before commissioner else from 28th May 1987 , all leases deemed to be cancelled - ever after the framing of rule in 2003 no application was made - the writ petitioners can not be considered as landless poor for claiming exemption either under sec.82(2) or under the rule 3(1) - Writ petitions are dismissed = 

In the instant case, the petitioners in both the cases have been granted
leasehold rights over land of an extent of Ac.7-75 cents and Ac.6-38 cents
respectively.  Even if these lands are construed to be dry lands, since, their
extent has exceeded five acres limit, both the petitioners cannot be construed
as landless poor persons.  When once the respective petitioners in both the
cases cannot be construed as landless poor persons, the lease said to have been
held by them stood terminated by virtue of the provisions contained under sub-
section (1) of Section 82 of the Act.  Thus, there is no subsisting lease in
favour of the petitioners.=
Sub-section (1) of Section 82 of the Act, which
reads as under:
"        Any lease of agricultural land belonging to or given or endowed for the
purpose of any institution or endowment subsisting on the date of commencement 
of this Act shall, notwithstanding anything in any other law for the time being
in force, held by a person who is not a landless poor person stands cancelled."

So long as they are not held by a landless poor person, the purpose and intent
of this Provision is to cancel all leases, which are subsisting as on the date
when the provision has been brought into force, excepting such leases, which are
held by the landless poor persons.  Sub-section (2) confers certain advantages
upon landless poor persons. 
 It provided a landless poor person, who held lands
for not less than six years continuously, to have the right of first purchase
and also for a consideration of 75% of the prevailing market value of similarly-
situated lands at the time of purchase and further the said consideration of 75%
shall be paid in four equal installments in the manner prescribed.  Further,
such a sale can be affected by the Institution other than by public auction.
"       For the purpose of this sub-section 'landless poor person' means a person
whose total extent of land held by him either as owner or as cultivating tenant
or as both does not exceed 1.011715 hectares (two and half acres) of wet land or
2.023430 hectares (five acres) of dry land and whose monthly income other than
from such lands does not exceed thousand rupees per mensum or twelve thousand   
rupees per annum.  However, those of the tenants who own residential property
exceeding two hundred square yards in Urban Area shall not be considered as
landless poor for the purpose of purchase of endowments properties."
Andhra Pradesh framed the Andhra Pradesh 
Charitable and Hindu Religious Institutions & Endowments Lease of Agricultural
Lands Rules, 2003, exercising the power available to him under sub-section (1)
of Section 82 read with Section 153 of the Act and got these Rules notified
through G.O.Ms.No.379, Revenue (Endowments) Department, dated     
11-03-2003.  Rule 3(1) thereof makes it clear that immediately after the Rules
came into force, if any cultivating tenant claims to be a landless poor person,
the Assistant Commissioner, having territorial jurisdiction, shall inquire into
and decide whether the cultivating tenant is a landless poor person or not, as
defined under Section 82 of the Act, after giving reasonable opportunity to the
cultivating tenant as well as to the executive authority of the Institution
concerned.  
Sub-rule (2) thereof makes it abundantly clear that if the
cultivating tenant does not claim to be a landless poor person or if the
Assistant Commissioner concerned determined that the cultivating tenant is not a
landless poor person, the tenancy will be deemed to have been cancelled with
effect from 28th May 1987 and the cultivating tenant shall be regarded as a
tenant holding over thereafter.  
Thus, since, these Rules have been first
published in Andhra Pradesh Gazette dated 13-03-2003, the petitioners are
required to make applications for recognition as landless poor persons
immediately thereafter.  Since, the petitioners have not filed any applications
seeking determination of their status as landless poor persons, the question of
application of the Rules itself in their case would not arise.  Even otherwise,
as already noticed supra, the petitioners, by virtue of the sweep of Section 82
of the Act, cannot even be declared as landless poor persons.  Hence, there is
no way that the petitioners can insist that they shall be permitted to continue
to carry on the agricultural operations of the lands belonging to the temple.  A
right of seeking permission for any grant cannot lie contrary to the
requirements of the Statute itself.
        I do not find any merit in both these writ petitions and therefore, they
are dismissed at the stage of admission, but however, without costs.

THE HON'BLE SRI JUSTICE NOOTY RAMAMOHANA RAO            

W.P.Nos.11424 of 2010 and batch
       
Dated 01-11-2013

W.P.No.11424 of 2010

Duvvur Niranjan Reddy, S/o Late Duvvur Adinarayana Reddy, Nellore......
Petitioner

The Executive Officer, Sri Kailaslanatha Swamy Temple, Brahmadevam Village,
Muthukur Mandal, Nellore District and another....RESPONDENTS  

Counsel for the petitioner :  Sri T. Balaji

Counsel for the Respondents :  Sri V.T.M. Prasad, SC for Endowments
                                                          Department for R-1
<GIST:

>HEAD NOTE:  

?Cases referred:

 1.  ALD-2011-6-582

THE HON'BLE SRI JUSTICE NOOTY RAMAMOHANA RAO            
W.P.Nos.11424 of 2010 and 30936 of 2013

C O M M O N  O R D E R:  

Writ Petition No. 11424 of 2010 is filed by one Duvvur Niranjan Reddy seeking a
writ of mandamus for declaring the action of the 1st respondent, namely the
Executive Officer, Sri Kailasanatha Swamy Temple, Brahmadevam Village, Muthukur  
Mandal, Nellore District, in auctioning the petitioner's land to an extent of
Ac.7-75 cents in Survey Nos. 203, 204 and 205 situate at Brahmadevam Village,
Muthukur Mandal, Nellore District, scheduled to be held on 19-05-2010 at 10-00
am or thereafter, as per the notice dated 05-05-2010, as illegal.
Writ Petition No. 30936 of 2013 has been filed by one Sri             B.
Seenaiah, seeking a writ of mandamus for declaring the action of the 2nd
respondent, namely, Sri Kailasanatha Swamy Temple, represented by its Executive 
Officer, Brahmadevam Village, Muthukur Mandal, Nellore District, in auctioning
the petitioner's land to an extent of Ac.6-38 cents in Survey No.207 situate at
Brahmadevam Village, Muthukur Mandal, Nellore District, pursuant to the notice
dated 24-10-2013, by auctions to be held on
06-11-2013 at 10-00 am or subsequently, as illegal.
The petitioner in the first writ petition has claimed that land of an extent of
Ac.7-75 cents situate in Survey Nos. 203, 204 and 205 situate at Brahmadevam 
Village belonging to Sri Kailasanatha Swamy Temple in the village was leased out
to him as early as in the year 1995 and he has been cultivating the said land as
a lessee by paying the Maktha to the 1st respondent temple every year.  It was
claimed by him that the lease has been extended from time to time, but however,
the 1st respondent has issued notice on
05-05-2010 proposing to grant the licence to cultivate the land in question by
way of a public auction to be held on 19-05-2010.  Hence, he instituted the said
writ petition challenging the validity of the notice.
So far as the petitioner
in the second writ petition is concerned, it is his case that land of an extent
of Ac.6-38 cents in Survey No. 207 situate at Brahmadevam Village belonging to
Sri Kailasanatha Swamy Temple has been leased out to his fore-fathers long back.
They have been cultivating the said land from a very very long time and that he
has been paying the annual Maktha at Rs.59,000/- to the said Devasthanam and in 
spite of his prompt payment of Maktha, the Devasthanam has taken out a 
notification on 24-10-2013, proposing to grant licence for cultivating this very
land, by public auction, for a period of three years, commencing from 2013-2014
and hence, this writ petition has been instituted.
In both the cases, the respective petitioner set out that as per Section 82 of
the Andhra Pradesh Charitable and Hindu Religious Institutions & Endowments Act, 
1987 (henceforth referred to as 'the Act'), the leases held by landless poor
persons are saved from cancellation and that the State Government has formulated
a scheme through their G.O.Ms.No.379, Revenue (Endowments) Department, dated 11-    
03-2003, indicating the procedure to be followed for the purpose of determining
the status of a landless poor person.  
The case of the petitioners is that
without following the procedure, the respondents are proceeding further in the
matter by proposing to conduct the necessary auctions.
It will be relevant to notice Sub-section (1) of Section 82 of the Act, which
reads as under:
"        Any lease of agricultural land belonging to or given or endowed for the
purpose of any institution or endowment subsisting on the date of commencement 
of this Act shall, notwithstanding anything in any other law for the time being
in force, held by a person who is not a landless poor person stands cancelled."

So long as they are not held by a landless poor person, the purpose and intent
of this Provision is to cancel all leases, which are subsisting as on the date
when the provision has been brought into force, excepting such leases, which are
held by the landless poor persons.  Sub-section (2) confers certain advantages
upon landless poor persons. 
 It provided a landless poor person, who held lands
for not less than six years continuously, to have the right of first purchase
and also for a consideration of 75% of the prevailing market value of similarly-
situated lands at the time of purchase and further the said consideration of 75%
shall be paid in four equal installments in the manner prescribed.  Further,
such a sale can be affected by the Institution other than by public auction.
        Therefore, for availing benefits prescribed under Sub-section (2), the
basic requirement is that the lease of the land must be held by a landless poor
person, at least, for a continuous period of six years.  The Proviso added to
Sub-section (2) also conferred a benefit on the landless poor person - lessee to
continue as a tenant in the land if he agrees to pay at least two-third of the
market rent, which was paid for similarly-placed lands, as lease amount.  The
Explanation reads as under:
"       For the purpose of this sub-section 'landless poor person' means a person
whose total extent of land held by him either as owner or as cultivating tenant
or as both does not exceed 1.011715 hectares (two and half acres) of wet land or
2.023430 hectares (five acres) of dry land and whose monthly income other than
from such lands does not exceed thousand rupees per mensum or twelve thousand   
rupees per annum.  However, those of the tenants who own residential property
exceeding two hundred square yards in Urban Area shall not be considered as
landless poor for the purpose of purchase of endowments properties."

Thus, a 'landless poor person' is defined as a person, whose total extent of
land held by him either as owner or as cultivating tenant or as both does not
exceed an extent of two and half acres of wet land or five acres of dry land and
whose monthly income, other than from such land, does not exceed Rs.1,000/- per
mensum or Rs.12,000/- per annum.  In other words, if the lease itself is granted
for wet land of two and half acres or dry land of five acres of extent, he
cannot be construed or considered as a landless poor person, even if he does not
own any land at all.
        In the instant case, the petitioners in both the cases have been granted
leasehold rights over land of an extent of Ac.7-75 cents and Ac.6-38 cents
respectively.  Even if these lands are construed to be dry lands, since, their
extent has exceeded five acres limit, both the petitioners cannot be construed
as landless poor persons.  When once the respective petitioners in both the
cases cannot be construed as landless poor persons, the lease said to have been
held by them stood terminated by virtue of the provisions contained under sub-
section (1) of Section 82 of the Act.  Thus, there is no subsisting lease in
favour of the petitioners.
        There is no denial or dispute with regard to the fact that the lands in
question belong to the temple.  When once a public auction is conducted and the
best bidder thereat has been granted the necessary permission to cultivate the
land, what, in effect and substance, is granted to such an individual is the
right to cultivate the said land, subject to the stipulations or conditions
contained in such a grant by the temple.  In effect and in substance, it is a
licence to cultivate the land in question.  The distinction, in principle,
between a 'licence' and a 'lease' lies in the fact that in case of licence, the
true owner or the member is always construed as holding possession of the land
and the grantee will not be construed as a trespasser so long as the conditions
and stipulations are honoured and complied with by him.  Thus, the right of the
grantee to enter upon the land and put it to agricultural operations is beyond
any question.  When once the grant expired by virtue of efflux of time as
stipulated in the grant itself or by its termination brought about in accordance
with the terms of the grant, in such cases also, the grantee ceases to have any
possession over the land in question.  He cannot, thereafter, enter upon the
land and deal with it for any purpose including agricultural operations (since,
I had an occasion to deal with a similar issue in JASTI VENKATESWARA RAO v.  
SOUTH CENTRAL RAILWAY, VIJAYAWADA [ALD-2011-6-582]).  Hence, all such grantees        
of right to cultivate agricultural lands belonging to a temple or endowment or
any institution, cease to have any right to enter upon said lands after the
period of grant expires or the grant gets terminated and any such activity of
theirs will fall foul of law and is liable to be frowned upon.  Hence, the
temple authorities are at liberty to grant the necessary right for the further
period in accordance with law.  However, it shall be open to them to permit the
previous grantee also to participate in an auction, provided he satisfies the
stipulations or conditions contained therein.
        In the instant case, the leases granted earlier in favour of the
petitioners have been terminated by virtue of the operation of the Provisions
contained under sub-section (1) of Section 82 of the Act. The petitioners now
have no manner of any right.  They are bound not to carry on any agricultural
operations therein.
        Further, the Governor of the Andhra Pradesh framed the Andhra Pradesh 
Charitable and Hindu Religious Institutions & Endowments Lease of Agricultural
Lands Rules, 2003, exercising the power available to him under sub-section (1)
of Section 82 read with Section 153 of the Act and got these Rules notified
through G.O.Ms.No.379, Revenue (Endowments) Department, dated     
11-03-2003.  Rule 3(1) thereof makes it clear that immediately after the Rules
came into force, if any cultivating tenant claims to be a landless poor person,
the Assistant Commissioner, having territorial jurisdiction, shall inquire into
and decide whether the cultivating tenant is a landless poor person or not, as
defined under Section 82 of the Act, after giving reasonable opportunity to the
cultivating tenant as well as to the executive authority of the Institution
concerned.  Sub-rule (2) thereof makes it abundantly clear that if the
cultivating tenant does not claim to be a landless poor person or if the
Assistant Commissioner concerned determined that the cultivating tenant is not a
landless poor person, the tenancy will be deemed to have been cancelled with
effect from 28th May 1987 and the cultivating tenant shall be regarded as a
tenant holding over thereafter.  Thus, since, these Rules have been first
published in Andhra Pradesh Gazette dated 13-03-2003, the petitioners are
required to make applications for recognition as landless poor persons
immediately thereafter.  Since, the petitioners have not filed any applications
seeking determination of their status as landless poor persons, the question of
application of the Rules itself in their case would not arise.  Even otherwise,
as already noticed supra, the petitioners, by virtue of the sweep of Section 82
of the Act, cannot even be declared as landless poor persons.  Hence, there is
no way that the petitioners can insist that they shall be permitted to continue
to carry on the agricultural operations of the lands belonging to the temple.  A
right of seeking permission for any grant cannot lie contrary to the
requirements of the Statute itself.
        I do not find any merit in both these writ petitions and therefore, they
are dismissed at the stage of admission, but however, without costs.
        Consequently, the miscellaneous applications, if any in both the writ
petitions, shall also stand dismissed.
        Registry is directed to issue a copy of this order to the learned Standing
Counsel for Endowments Department on usual terms.  
___________________________    
NOOTY RAMAMOHANA RAO, J.      
Date.01.11.2013.

Tuesday, September 4, 2012

Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Immovable Properties and other Rights (other than Agricultural Lands) Leases and Licenses Rules, 2003- a challenge to the Notice inviting Tender (online version) floated by the 1st-respondent-Devasthanam for granting a licence for procurement of human hair through e-procurement-cum- Public auction. The 1st respondent-Devasthanam has floated Notice Inviting Tender (online version) (henceforth referred to as "N.I.T.") inviting bids for grant of licence for procurement of human hair through e-procurement-Cum-public auction for a period of one year commencing from 1.4.2012 upto 31.3.2013. The bid documents were allowed to be down- loaded from 11.00 A.M. on 13.2.2012 and they are required to be submitted latest by 4.00 P.M. on 27.2.2012. The bid validity period is prescribed as one year and the bid process comprised of two parts. But, however, it is made abundantly clear to the respondents that unconcerned and uninfluenced by any of the observations made in the foregoing paragraphs of this judgment, if the writ petitioner has already filed his response to the N.I.T. along with other similarly placed persons, his bid also will be considered and he will be allowed to participate in the public auction.


THE HON'BLE SRI JUSTICE NOOTY RAMAMOHANA RAO            

WRIT PETITION No.5323 of 2012  

28.2.2012

M/s. Lavanya Enterprises                              

Sri Bhramaramba Mallikarjuna Swamyvarla Devasthanam, Srisailam represented by  
its Executive Officer and others

Counsel for the Petitioner: Sri W.B. Srinivas Counsel for Respondent No.1: Sri
V.T.M. Prasad rep. By Advocate General
Counsel for Respondent Nos. 2 to 4:  G.P. for Endowments

<Gist :

>Head Note:

? Cases referred:

ORDER:

        The writ petitioner has mounted a challenge to the Notice inviting Tender
(online version) floated by the                 1st-respondent-Devasthanam for
granting a licence for procurement of human hair through e-procurement-cum-
Public auction.
        The 1st respondent-Devasthanam has floated Notice Inviting Tender (online
version) (henceforth referred to as "N.I.T.") inviting bids for grant of licence
for procurement of human hair through e-procurement-Cum-public auction for a
period of one year commencing from 1.4.2012 upto 31.3.2013.  The bid documents 
were allowed to be down- loaded from 11.00 A.M. on 13.2.2012 and they are
required to be submitted latest by 4.00 P.M. on 27.2.2012.  The bid validity
period is prescribed as one year and the bid process comprised of two parts.
The first part is comprising of a technical bid and the second part is
comprising of the price bid and the technical bid is slated to be opened at
11.A.M. on 28.2.2012; while the price bid is slated to be opened at 2.00 P.M. on
29.2.2012.  Thereafterwards, the public auction is slated to be conducted from
3.30 P.M. onwards on 29.2.2012 in the office of the Commissioner of Endowments,
Tilak Road, Hyderabad.  The eligibility criterion  prescribed for participation
are (1) the tenderer should possess Certificates like Registration of Firm, I.T.
PAN Number (obviously, Income Tax Permanent Account Number), VAT Registration    
and he shall not be a defaulter in payment to any of the major temples and he is
also required to enclose a demand draft drawn in a sum of Rs.50.00 lakhs in
favour of the Executive Officer of the Devasthanam payable on Andhra Bank/State
Bank of Hyderabad, Srisailam or State Bank of India, Srisailam Project Colony
Branch.  The participating bidders are required to register themselves free of
cost on E-procurement platform on the website w.w.w.eprocurement.gov.in or
https://tender.eprocurement.gov.in.  This process of granting licence has been
challenged for various reasons including the violations of the Rules on the
subject.
        Heard Sri W.B. Srinivas, learned counsel for the writ petitioner and the
learned Advocate General in the company of Sri V.T.M.Prasad, learned Standing
Counsel appearing for all the respondents.
        Sri Srinivas, learned counsel for the petitioner would submit that the
Governor of Andhra Pradesh in exercise of the powers available under Section 82
read with Section 153 of the Andhra Pradesh Charitable and Hindu Religious
Institutions & Endowments Act, 1987 (henceforth referred to as "Act" for
brevity) has framed the Rules called Andhra Pradesh Charitable and Hindu
Religious Institutions and Endowments Immovable Properties and other Rights
(other than Agricultural Lands) Leases and Licenses Rules, 2003 (henceforth
referred to as "Rules").  As per Rules 3,4,6 and 7, all leases or licences are
required mandatorily to be conferred only through public auction and any
departure therefrom is bound to be declared as an illegal exercise.  The
expression "public auction", according to the learned counsel for the writ
petitioner, does not comprise the process of tendering.  The expression "public
auction" normally and generally connotes the auction process at which all
prospective bidders are entitled to participate and offer their bids, competing
with each other so that the best possible price for lease or licence of the
right would be fetched.  Public auction is intended to protect the interest of
the institution inasmuch as at a fair competition, the best price with all
transparency can be secured.
        Per contra, the tendering process is a closed circuit affair shrouded in
secrecy, mystery and capable of being manipulated by handful of men, who could
form a cartel.  According to the learned counsel for the petitioner, when the
Rules required the public auction to be conducted, any departure therefrom by
adopting any other mode or method for granting licences is illegal.  Learned
counsel, in support of this contention has pointedly drawn my attention to the
fact that only those tenderers, who have participated in the N.I.T. alone are
entitled to participate in the public auctions that are slated to be conducted
from 3.30 P.M. on 29.2.2012 onwards.  Thus, the public auction is curtailed to a
limited auction.  Learned counsel for the writ petitioner has also pointedly
drawn my attention to an interim order passed by this Court on an earlier
occasion in W.P.M.P. No. 5386 of 2011 in W.P. No. 4350 of 2011.  Incidentally,
the respondents 1 to 3 herein are also respondents to the said writ petition
wherein this Court has found that the circular instructions issued on 9.2.2011
by the Commissioner of Endowments directing adoption of E-procurement method as  
an alternative to the method prescribed under the Rules cannot be sustained.
        Learned counsel for the writ petitioner has also pointed out that non-
refundable transaction fee together with service tax component thereof is now
asked to be paid to the 4th respondent with whom the bidders or  participants at
the public auction have nothing to do with.  This again, is a  contravention
from the rule position prescribed in the Rules.  Learned counsel for the
petitioner would further submit that the entire process is a coercive mechanism
adopted to secure limited  competition and consequently the interests of the
institution are sought to be compromised.  Finally, since the writ petitioner is
a bona fide bidder for procurement of human hair, he shall not be prevented from
participating at the public auction slated to be conducted at 3.30 P.M. on
29.2.2012 at the office premises of the Commissioner of Endowments and he shall
be allowed to participate along with many others, who might be willing to
participate thereat without necessarily obliging to lodge their response to
N.I.T.  Incidentally, learned counsel for the writ petitioner has also mounted
criticism on the contents of paragraph-8 of the Conditions specified under the
caption "technical bid".
        The Rules have been framed in exercise of the powers available under
Section 82 read with Section 153 of the Act and consequently, they have
statutory enforceability.  Rule-3 thereof made the position crisply clear that
all leases or licences shall be made by way of public auction, provided that,
the Commissioner may, on a request made in writing by the executive authority
permit the lease of any property or right otherwise than by way of public
auction, if he is satisfied, for reasons to be recorded in writing that the
interest of the institution or endowments will not suffer thereby.
  The position that emerges is that all leases and licences are required to be
conferred only after undertaking public auctions.  Rule-4 made this position
that much more explicitly clear by specifying that the licence for collecting
human hair also shall be granted by way of public auction only.  Rule 6 spelt
out the various requirements to be contained in the auction notice.  Rule-7
required the copy of the auction notice to be published in the language of the
locality at least ten days prior to the date fixed for auction, by affixture,
(1) on the notice board or on the front door of the institution concerned, (2)
on the notice board of the Office of the Municipality or Gram Panchayat as the
case may be where the property in question is situate and (3) finally on the
notice board of the office of the Assistant Commissioner having jurisdiction
over the area in which the property is situate. Further the contents of the
auction notice were also required to be published by way of beat of tom tom  in
the inhabited area of the Gram Panchayat in which the property is situate,  and
also by way of publication in the local language in any of the local daily
newspapers of the local language having circulation in the area etc.
        The whole controversy now is riveted around public auction.  If we analyse
the N.I.T., it comprised of two parts.  The first part related to the
entertainment of tenders and the second part comprised of the element of public
auction.  It is explicitly made clear in the N.I.T. that the public auctions
will be conducted from 3.30 P.M. onwards on 29.2.2012 in the Office of the
Commissioner of Endowments, Hyderabad.  This, to my mind, is an absolute
compliance with the requirement of the Rules.  Public auction has not been
dispensed with by the respondents 1 to 3 herein at all.  But the whole exercise
is that the entry at that public auction has been confined only to those, who
submit their tenders by responding to the N.I.T.  In other words, the
participation at the public auction is sought to be regulated.  Public auction
is now confined to those who respond to the N.I.T. only.
        N.I.T.,  again comprises of two parts.  The first part relates to the
technical bid and the technical bids are slated to be opened at 11.00 A.M. on
28.2.2012. Thereafter, the price bids were slated to be opened at 2.00 P.M. on
29.2.2012.  Highest offer received thus far is sought to be taken as the minimum
upset price or the floor price at the public auctions to be held from 3.30 P.M.
on 29.2.2012.  In other words, the N.I.T. is floated by the respondents 1 to 3
herein for the purposes of working out as to the amount of upset price that
should be fixed and also to regulate the participants at the said public
auction.  To put it differently, even if one of the tenderers, who happens to
offer the lowest price, he is as much entitled to participate at the public
auction on the same terms and conditions as the highest bidder at the N.I.T.
would have.  Illustratively put, if the highest bid received is in a sum of
rupees one crore, while the lowest bid is in a sum of let us say, one lakh of
rupees, all those who have submitted their tenders, including the one who has
given the bid for rupees one lakh is granted an entry pass to enter the public
auction house.  He can compete and give his competitive bid at the public
auction.  There would be nothing wrong thereafter if such a lowest tenderer were
to ultimately emerge as the highest bidder.  Therefore, the N.I.T. is intended
to serve the purpose of not only securing the minimum upset price at which the
public auctions are to be commenced, but it is also intended to secure a fair
and adequate competition.  Experience at public auctions held in the past would
offer adequate lessons for the public administration to keep on refining the
process.  It is not hard to imagine that the integrity of the tender process is
found, of late, to be tinkered and tampered with by the manipulative kind of
bidders.  Tendering process is increasingly prone for criticism that cartels are
formed before hand and necessary adjustments are made outside to duly eliminate
severe and sincere competition amongst the tenderers.  To frustrate any such
designed move, E-Procurement platforms are opened up.  The E-procurement method  
is not only most visible and transparent method devised, but at the same time,
the element of secrecy with which the bids are lodged and received will offer
the necessary amount of security in the mind of the tenderer, to come up with a
realistic offer.  Such tenderers would mostly remain unidentified till the very
last minute, i.e., till the time the tenders are opened.  One can thus avoid the
uneasy gaze and remain obscure from inducements.  Excepting the tenderer
himself, the other persons may not be knowing who are all his likely competitors
at the tendering process.  This is a safety mechanism which would help to
prevent information from being freely shared by those in the business.  Secondly
whatever apprehensions one might entertain for participation in an open tender
process would be conspicuous with their absence in the E-tender procurement
process.  Therefore a sense of security is enveloped around          E-
procurement process.  Further, the tendering process can be built in two or
three two stages.  When certain technical qualifications are essentially
required to be possessed, the process of the tender can legitimately be split
into two bids, the first bid being the technical bid and the second bid
comprising of a financial bid is not an uncommon concept.  By allowing the
tenderer to satisfy all the technical requirements first and then only pass
through to the next phase of consideration, namely, financial or price bid, a
fair amount of competition is ensured, but at the same time, such competition is
finetuned amongst the genuine bidders.  The non-serious variety, such as those
who casually intend to interdict the entire process of bidding, can be filtered
and eliminated at the technical bid stage.  The integrity of the tendering
process gets preserved.  Therefore, receiving bids at two different stages, has
proved its cutting edge and effectiveness.  I therefore, do not find anything
improper in that regard.  To my mind, by conducting public auction from 3.30
P.M. on 29.2.2012, the requirements of Rules, 3,4,6 and 7 are totally satisfied.
Limiting the number of participants at the public auction is a measure,
obviously intended to  filter the non-serious variety of bidders.  Hence, the
N.I.T. floated by the 1st respondent cannot be declared as illegal.
        The criticism of Sri Srinivas, learned counsel for the writ petitioner
that additional burden or obligation of paying the transaction fee to the
unconcerned 4th respondent vitiates the N.I.T. does not impress me at all.  It
is not uncommon for the employer or the principal to offer for sale the tenders
or the bid documents at a particular price.  Such a price is mostly non-
refundable.  That is a price fixed for ensuring that only the serious kind of
participants would get attracted instead of all and sundry people.  When we
consider the transaction fee, which is now sought to be charged from each
bidder, it only amounts to a different form of bid document charges.  The
transaction fee, at a fixed percentage, ultimately at 0.03% of the estimated
contract value, is almost the same as that of the bid document price.  What is
additionally charged thereon is a Value Added Tax, which is the requirement of
law and that cannot be opposed by any participant.
        That takes me to the last of the criticisms of Sri Srinivas, that
paragraph-8 of the technical bid contained, according to the learned counsel for
the petitioner, vield threats to the bidders.
        I am conscious and I am equally confident that the respondents 1 to 4 are
aware that it is the most significant and salient feature of our Indian
Constitution that Right to seek legal remedy against any violation of any of the
Fundamental Rights is itself a guaranteed Fundamental Right and consequently,
the right to seek such a legal remedy to any of our citizens cannot be
curtailed.  What has been contained in paragraph-8 is a mere caveat.  The first
respondent-Devasthanam has been playing safe by trying to caution the bidders
not to indulge in litigative zeal or uncalled for adventurism.  If for any
unjust reasons and causes, the process of granting licences is sought to be
stopped or interdicted with, a caveat is entered by the 1st respondent-
Devasthanam that the bidder is exposing himself to the risk of being sued for
the recovery of damages.  As is too well known, the right to seek damages for
any civil wrong is an assured Civil Right available to every other individual
including an institution such as the 1st respondent.  Therefore, the contents of
paragraph-8 of the technical bid, far from wielding any threats or any coercive
measures upon the proposing bidders, but, is only intended to alert them of the
perils of indulging in acts which are likely to sabotage the process and thus
cause loss and damage to the 1st respondent institution.  Nothing more sinister
deserves to be read into the contents of paragraph-8 and therefore, I am not in
a position to agree with the submissions of the learned counsel for the writ
petitioner.
        Finally, learned counsel for the writ petitioner has drawn my attention to
the interlocutory order passed by this Court on 23.2.2011 in W.P.M.P. No. 5386
of 2011 in W.P. No. 4350 of 2011.  It will be appropriate to quote the relevant
portion of the said order, which is to the following effect:--

        "Prima facie, in the face of the Andhra Pradesh Charitable & Hindu
Religious Institutions & Endowments Immovable Properties and other Right (Other
than Agricultural) Leases and Lincenses Rules, 2003 notified under G.O.Ms.
No.866, dated 8.8.2003, (for short 'the Rules') the impugned circular dated
9.2.2011, directing adoption of e-procurement method as alternative to the
method prescribed under the Rules cannot be sustained."


        The learned Judge, in the above order, had made the position very clear
that the impugned Circular dated 9.2.2011 directing adoption of E-procurement
method as an alternative to the method prescribed under the Rules cannot be
sustained.  It is needless for me to remind myself that if the E-procurement
method is substituted for public auction, the same result it would have followed
perhaps even in this case.  Far from substituting the E-Procurement method in
the instant case, if I may say so, very wisely the respondents 1 to 3 have used
the E-procurement method as a mere regulatory process, but not as a substitute
for the public auction.  I, therefore, do not find that the same interim order
as was passed, as referred to supra, should follow even in this case.
        Since I am not able to find any merit in the contentions canvassed in this
writ petition, I have no hesitation to dismiss this writ petition at the
admission stage.  But, however, it is made abundantly clear to the respondents
that unconcerned and uninfluenced by any of the observations made in the
foregoing paragraphs of this judgment, if the writ petitioner has already filed
his response to the N.I.T. along with other similarly placed persons, his bid
also will be considered and he will be allowed to participate in the public
auction.
        The writ petition is accordingly dismissed.  No costs.
  ______________________________  
NOOTY RAMAMOHANA RAO,J        
DATE:  28th February, 2012