STATE OF MADHYA PRADESH Vs. RATANLAL AND ANOTHER

JUDGEMENT

(1.) This appeal by special leave against the judgment and decree of the High Court of Madhya Pradesh, D/- Sept. 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 of the breach of Art. 299 of the Constitution. This is the question that arises in this appeal. The facts were these:

(2.) On Dec. 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 Dec. 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 Jan. 6, 1954. The telegram said:

(3.) Art. 299 of the Constitution, as it was at that time read: