In Brief
A sand contractor in Maharashtra placed the highest bid (₹59,75,000) for excavation rights to a sand block and deposited the full amount. However, due to local opposition from nearby villagers, he never received possession of the land and could not excavate any sand. He requested a refund, but due to administrative delays and a misplaced file, the State rejected his claim. The High Court declined to hear his writ petition, citing factual disputes. The Supreme Court allowed the appeal, holding that the State's refusal to refund was arbitrary and unreasonable. The Court ordered full refund with 6% interest, emphasizing that the State must act as a model litigant and not use technical defences against legitimate citizen claims."
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