A DAMODARAN Vs. STATE OF KERALA

JUDGEMENT

(1.) THE appellants, before us by certification of the case, had filed a petition to quash revenue recovery proceedings started against them for realisation of the remainder of the amounts due on account of their bids at auction sales of some toddy shops for the period 1/04/1967, to 31/03/1968, by the Government of Kerala. THE amounts at which the shop were knocked down were: <FRM>JUDGEMENT_61_3_1976Html1.htm</FRM>

(2.) THE notified conditions of the auction sales made it incumbent upon the bidder to pay immediately 10% of the amount due and to provide personal security for the rest. THEre was no assurance or guarantee given there that prohibition will not be removed in future by the Government in any area in the State or about any other matter of future policy of the Government relating to intoxicants. According to notified conditions, the successful bidders had to deposit 30% of the total amount payable on demand by the Assistant Commissioner and also to execute agreements before getting the necessary licenses. THE petitioners had deposited the necessary amounts on demand. THEy were also allowed to start the business of running their toddy shops even before the licenses were issued in their favour.

(3.) A learned Judge of the Kerala High Court who heard the petition held that the notification in pursuance of which the shops in question were auctioned provided that, if the contract could not be executed, the whole amount was to be forfeited and the shop itself was to be resold. Thus, non-execution of the contract due to the unwillingness or inability of a bidder to pay was not a contingency outside the notification for auction the validity of which is not challenged. The notification did not lay down that, in that case, the payment of the remainder will be remitted. On the other hand, the condition was that the whole amount due could, in such an event, be "forfeited."