Interest is payable only under an agreement between the parties, under the usage of trade having the force of law, or under the provisions of substantive law or the Interest Act. In the absence of any such provision, the petitioner was not entitled to interest on the deposits made under Rule 16.

( 1 ) THESE two writ petitions are filed by the same petitioner. Only they are for two different years. The points raised are the same. So, they are disposed of by a common judgment. The petitioner is a partnership firm carrying on business in vending arrack. For the years 1976-77 and 1977-78 the petitioner was the highest bidder concerning some group of arrack shops in visakhapatnam district. On the date of the auction, he has paid one month rental and also earnest money under rule 16 of the Andhra Pradesh Excise (Lease of Right to Sell Liquor in Retail) Rules, 1969. He obtained the licence. The excise Authorities adjusted the earnest money and the one month rental deposited under rule 16 towards the rental payable by him for the months of May and June. He has furnished bank guarantee for the three months rental deposits contemplated under rule 18. His grievance is, that while the Excise authorities are adjusting the interest accrued on the deposits made under rule 18 towards the rentals payable by the contractor during the lease period or refunding it at the end of the lease period, they are not giving credit to the interest accrued on the deposits made under rule 16. He also submits that while interest is being paid on the deposits made under rule 19, no such interest is paid on the amounts deposited under rule 16. Therefore, he has filed these writ petitions to give a direction to the respondents to calculate the interest on the deposits made by him under rule 16 and adjust it for the months of august and September, or to refund it.

( 2 ) ON behalf of the Government it is submitted that there is no provision either in the Act or in the Rules to pay interest on the amounts deposited under rule 16 and that interest is payable only under rule 18 on the deposits made in fixed deposit certificates of a scheduled Bank.

( 3 ) IN order to decide this question, i will refer to the relevant provisions of the Act and Rules. Under section 17 of the Andhra pradesh Excise Act, the Government may, subject to such conditions as they may deem fit to impose, grant for a fixed period to any person, at any place a lease jointly or severally for the supply, manufacture or sale of any intoxicant. A lease shall not take effect until the Collector or any other competent Officer has issued a licence under the Act. Section 29 empowers the authority granting the licence, subject to such rules as may be prescribed, to require the licencee to give security for the observance of the terms of his licence, and to execute a counterpart agreement in conformity with the tenor of his licence. Under section 72 (2) (g), the Government may make Rules regulating the time, place and manner of payment of any duty or fee and the taking of security for the due payment of any duty or fee. Under Clause (h), sub-clause (in), they can prescribe the amount of security to be deposited by the holders of any licence or permit for the performance of the conditions of the same. Under rule 16 of the andhra Pradesh Excise (Lease of Right to Sell Liquor in Retail) Rules, 1969, the auction-purchaser shall pay 2 per cent, of the annual rental as earnest money together with one month s rental on the day of the auction immediately after the acceptance of the tender or bid as the case may be. The earnest money and one month s rental shall be in addition to the rental deposit required in rule 18. In case of failure to remit the earnest money and one month s rental on that day, the shop or group of shops shall be re-auctioned. Rule 18 (1) says that within fifteen days from the date of auction, the auction-purchaser shall deposit three months rental in cash or in fixed deposit receipts of a scheduled Bank, or a District Cooperative Central Bank taken for the period of lease or furnish a guarantee of any such bank. Sub-rule (2) of rule 18 says, that all interest accruing on such certificates shall be adjusted towards the dues including interest, if any, outstanding against the auction-pu

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