N T THULASI Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE defendant is the appellant.

(2.) THE averments in the plaint are as follows: THE plaintiff conducted annual lease of right to vend toddy and arrack from 1.9.1972 to 31.8.1973 for shop No. 33, Ruddrakotti Village, on 3.7.1972 through the Revenue Divisional Officer, Chengalpattu. THE conditions of auction was supplied to the bidders and were read over and explained to them before they took part in the auction. THEre were two bidders of whom the defendant was the highest and his offer was Rs. 5,200/- per month. He has paid Rs. 200/- towards initial deposit and half month rent. THEreupon the auction was confirmed by the Collector. THE defendant paid 1 1/2 month's rent on 10-7-1972 and commenced the vending of toddy. He has paid the rent for the months' of September and October, 1972. In all, he has paid Rs. 21,000/-. THE highest bidder will have to apply for licence stating the location of the proposed shop within three days of the auction. THE defendant had applied for licence. THE defendant has paid two month's rent including half month's rent and deposited within seven days from the date of auction and the defendant has paid the said amount also. As per the condition No. VII, on the failure of the highest bidder to apply for licence, complying with the conditions and executing the agreement, the shop may be leased again and the defaulting bidder will have to make good the deficiency between the highest total amount payable for whole period under the original sale and the total amount by the successful bidder at the re-sale. THE deposit made by the original bidder will also be forfeited. As per condition No. VII, on the failure of any person to make a deposit or apply for licence, the shop may be resold. THE re-sales under this condition will be under the risk of the defaulting bidder. THE loss will be recoverable from the defaulting bidder. Since the defendant committed breach of terms and conditions of auction in not paying the amount, and not conducting the shop for the auction period, the shop was again leased and the re-auction was held on 14-12-1972 and 15-12-1972. One John was the highest bidder at Rs. 700/- per month and the re-sale was confirmed in his favour. THE total amount payable by the defendant for 12 months is Rs. 62,400/-. THE total amount paid by him is Rs. 20,800. THE total amount realised by the Government is Rs. 26,400/-, since the second successful bidder paid Rs. 5,600/-. THEre is a loss of Rs. 36,000/- to the Government. THE defendant has to make payment of the same with interest at 9% per annum. Hence the suit.

(3.) ON the above pleadings, after trial, the learned Subordinate Judge, Chengalpattu has granted a decree in favour of the plaintiff as prayed for, upholding the plaintiff's contention.