NAND KISHORE SARAL Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) This appeal on certificate granted by the Rajasthan High Court is against the dismissal of the appellant's writ petition under Art. 226 of the Constitution praying for the issue e of a writ of certiorari to the State of Rajasthan, respondent No. 1, for the cancelling and setting aside of its order dated April 1, 1964 granting the contract for collecting royalty on building stones excavated from certain area to respondent. No. 2, Dharti Dan Shramik Theka Sahkari Samiti Ltd., a co-operative society. The appeal arises in these circumstances.

(2.) The appellant offered the highest bid at the auction for the grant of royalty collection contract on 21-1-1964. Respondent No. 2 was also one of the bidders, but stopped after offering abid of Rs. 33,000. The final bid of the appellant was for Rs. 42,200. The State Government made the order in favour of respondent No. 2 on an application made by it on March 5, 1964, stating therein that the appellant had not deposited 25 per cent. of the bid amount as security immediately after the completion of the auction in accordance with R. 36 (7) of the Rajasthan Minor Mineral Concession Rules, 1959, hereinafter called the rules, and as per the terms and conditions of the Auction Notification and that it was prepared to take the royalty collection contract on the highest bid of Rs. 42,200. It was further stated in the application that respondent No. 2 was a co-operative society of the labourers who themselves worked on the mines of the area and therefore in view of Government's policy it should receive preference to an individual bidder. It was further stated that the benefit accruing out of the contract of royalty collection would be shared by the labourers and workers themselves which would go a long way to improve their socioeconomic conditions and thus ultimately would ameliorate the conditions of the workers who were working hard in quarries since long.

(3.) The contention for the appellant is that the Government had merely to confirm the highest bid at the auction by way of formality and was not competent to sanction the contract in favour of someone who had not offered the highest bid at the auction.