(1.) This appeal by the State Government is directed against the judgment and decree of Civil Judge, Coorg, in O.S No.9 of 1971 dated 14-4-1975 decreeing the suit of the plaintiff for Rs. 2,21,451/-. Though the suit claim is for a very heavy amount, the facts of this case are quite simple and do not admit of much controversy.
(2.) The parties are referred here by the position assigned to them in the trial Court.
(3.) The 1st defendant, i.e., the State of Mysore, under the Notification dated 11-4-1969 published in Mysore Gazette Extraordinary of even date called for tenders for leasing the right of retail vending of liquors in Kodagu District. The terms and conditions of retail vending are found in the Gazette Notification Ex. P-9. The relevant Clause for the purpose of this case is Clause 18(b)(1). In pursuance of the said Notification, the plaintiff participated in the auction sale conducted by the 2nd defendant/Deputy Commissioner Of Kodagu who is also the District Excise Officer under the Karnataka Excise Act (hereinafter referred to as the 'Act'). The auction was held on 19-5-1969 and the plaintiff became the successful bidder to vend arrack in retail in the entire taluk of Somwarpet for the period commencing from 1-7-69 and ending with 30-6-1970. It is not in dispute that on the date the auction was held, the Excise Commissioner, Mysore, had sent a telegram as per Ex. D-2 to the 2nd defendant on the following terms :