The paramount factor in settling a quarry is public interest, and ecological factors must also be considered. Settlement by tender process or public auction safeguards public interest and prevents arbitrary conferment of largesse on chosen favorites.

Anniguri Sand and Stone Mahal was settled with the petitioner in 1986 for a period of three years which was later extended to 27.9.91. For the period from 1991-93 the authority com­petent published tender notice inviting tenders. The notice was pub­lished on 2.7.91, the last date of receipt of tender was fixed as 18.7.91. On 18.7.91 the Minister of State, Govt. of Assam dealing with Forest sent W. T. Message (Annexure-C) to the Officer conce­rned directing stay of the tender process in this case until further orders. Annexure-D dated 24.7.91 is a W. T. Message sent by the Commissioner and Secretary of the Govt. of Assam to all Forest Officers suspending settlement of forest mahal on account of foul play and the flood situation. On 27.9.91 the fourth respondent submitted an application to the Government requesting for private settlement of this quarry to him. By Annexure-E letter dated 3.8.91 the Gov­ernment forwarded the same to the Officer concerned for a detailed report. These developments persuaded the petitioner to file this writ petition praying for a writ of Mandamus quashing Annexures-C, D and E,

2. We have heard the learned counsel for the petitioner, the fourth respondent and the learned Govt. Advocate.

3. We think it unnecessary to go into the question of mala fides raised in the writ petition or the defence raised on behalf of the fourth respondent. It is agreed at the Bar that settlement can be effected by tender/auction or by direct negotiation. The tender proc­ess that commenced earlier has become infractions since no one has submitted tender, or as now urged before us, the authority concer­ned did not receive tenders and ordinarily the tender process has to be commenced afresh. Direct settlement can be resorted to only if the circumstances justify it. While it may be open to any one to apply for private settlement, the authority concerned can consider it only if the circumstances justify abandonment of the tender or auction process.

4. While providing for settlement by tender or direct negotia­tion no guidelines are expressly laid down as to when one method is to be preferred over the other. However, the scheme of the sett­lements, the purpose sought to be achieved by such settlements clearly spell out certain broad guidelines. The Government or any subor­dinate authority has no unguided or arbitrary discretion in choosing one method over the other. In the matter of a settlement which earns revenue for the Government, the paramount factor to be taken into consideration is public interest. In appropriate cases such pro­cesses as may ensure protection of such sections of people or institution as may require protection, may have to be adopted. In so far as settlement, like sand mahal (quarry) are concerned, besides public interest, State has also to take note of ecological factors. It should first be decided if the right to operate a quarry is to be a settled. If there is to be a settlement, it should next be considered whether it should be settled by tender process or by direct negotiations or otherwise. Though alternate methods are admittedly contemplated, direct settlement cannot be resorted to as the normal procedure. The normal procedure musk necessarily be the tender process or public auction for only they safeguard public interest and prevent arbitrary conferment of largesse on chosen favourites. There may be cases whore tender or auction process fails to lead to just or proper settlement on account of various reasons ; the situation in a given case or area may be such that such process is impracticable or cannot otherwise be resorted to. Only when there is sufficient ground not to effect settlement on the basis of tender or auction, Government or authority concerned could think of effecting direct settlement. These are the general guidelines that the State or authority concerned has to bear in mind before taking appropriate decision in this regard.

5. We dispose of the Civil Rule directing the