STATE OF MADHYA PRADESH Vs. RATANLAL

JUDGEMENT

(1.) This appeal by special leave against the judgment and decree of the High Court of Madhya Pradesh, D/- September 10,1963, raises only one question. The former State of Madhya Bharat (for which the State of Madhya Pradesh now stands substituted) brought a suit against the firm of Badri Prasad Ratanlal of Dabra for damages for breach of a contract. THIS suit was dismissed by the Additional District Judge, Guna and on appeal to the High Court the decree was confirmed. The High Court and the Court below held that there was no binding contract in view af the breach of Article 299 of the Constitution. THIS is thej question that arises in this appeal. The facts were these:

(2.) On December 17, 1953, the Director of Food and Civil Supplies in the former Government of Madhya Bharat issued an advertisement (referred to occasionally in the case as notification) inviting tenders for the purchase of 9,000 maunds of gram lying in the Government godown at Ashoknagar. ON December 20, 1953, the firm of Badri Prasad Ratanlal submitted a tender addressed to the Director, Food and Civil.Supplies, Indore. The tender was accepted by telegram on January 6, 1954. The telegram said:

(3.) The Additional District Judge, Guna was, therefore, right in dismissing the suit of the State'Govenment on the ground that there was no binding contract which the State Government could enforce against the respondent and the High Court was right in not accepting the appeal. THE appeal fails and will be dismissed with costs. Appeal dismissed.