Authority: High Court of Judicature at Bombay, Circuit Bench at Kolhapur
Order Date: 27 October 2026
Case Overview
- Petitioner: Shri Mangalmurti Stone Crusher (represented by Advocates Abhijit Kulkarni, Vishal Hande, Sachin Hande)
- Respondent: State of Maharashtra (represented by Additional Government Pleader S. B. Kalel)
- Petition: Writ Petition No. 42 of 2026 seeking interest on a refunded principal amount of Rs 12,34,30,000 after the cancellation of an auction.
- Background: The auction was cancelled by the Hon'ble Minister on 11 September 2023; the principal amount was subsequently refunded but no interest was paid despite a representation dated 4 October 2024.
- Prior Authorities Cited:
- Order dated 5 February 2014 in Writ Petition No. 10175 of 2013
- Order dated 20 June 2005 in Writ Petition No. 1207 of 2005
- Order dated 8 November 2023 in Writ Petition No. 3027 of 2022
- Order dated 28 March 2023 in Writ Petition No. 2395 of 2023
These precedents granted interest at 9% p.a. in similar circumstances.
- State's Position: The State did not take instructions despite an order dated 11 August 2026 and maintained that no interest was granted by the Minister.
- Court's Reasoning: Exercising equitable jurisdiction under Article 226, the Court observed that the petitioner suffered no fault; the auction cancellation caused the funds to remain with the Government, warranting compensation with reasonable interest.
Final Outcome
- The Court directs the State (Respondent No. 2) to pay interest at the rate of 9% per annum on Rs 12,34,30,000 for the period from 31 March 2022 to 19 March 2024.
- Payment must be made to the petitioner within four weeks of the order.
- The writ petition is hereby allowed and disposed of as above.
Topics: Legal Compensation, Interest Award