M.P. PURUSHOTHAMAN vs GOVT. OF A.P. — C.A. No. 4975/1999

Summary: M.P. Purushothaman applied for a beer manufacturing license in Andhra Pradesh and received a Letter of Intent requiring a Rs. 50,000 security deposit within one month. He submitted a demand draft on 5.2.1993, but delivered it to the Director of Distilleries & Breweries counter instead of the Commissioner of Excise counter. When the Commissioner didn't receive it by 4.3.1993, the state cancelled the Letter of Intent. The Supreme Court allowed the appeal, holding there was substantial compliance with the rules since the subordinate officer had a duty to forward the deposit without delay, and the mistake was unintentional. The Court set aside both the High Court's dismissal and the cancellation order, directing the Commissioner to proceed according to law with no costs awarded. This case analysis is maintained by casestatus.in based on publicly available court records.