PREM NATH MAHROTRA Vs. STATE OF U P

JUDGEMENT

(1.) The State of U.P. was having eight Zamindari Abolition Compensation Bonds of the face value Rs. 5,000/-. The State of U.P. directed the Collector, Farrukhabad to sell the aforesaid bonds by public auction at the market value. On the direction of the Collector, Naib Tehsildar issued sale proclamation for public auction and the bonds were put to auction on 12.8.1969. The Plaintiff participated in the auction and offered highest bid of Rs. 3,020/-His bid was accepted and he deposited 1/4th of the bid amount. The Naib Tehsildar submitted report to the Sub-Divisional Officer concerned and the Plaintiff's bid was approved by the Sub-Divisional Officer. He was directed to deposit the balance amount which he duly deposited. However, when the bonds were forwarded to the Collector for endorsement of the name of the Plaintiff as the purchaser, the Collector refused to make the endorsement and directed for a fresh auction as he was of the opinion that the auction was not proper. The bonds were re-auctioned and were sold for a sum of Rs. 4,700/- to some other person. The Collector made endorsement of transfer of the bonds in favour of the aforesaid auction purchaser.

(2.) In view of aforesaid factual matrix the Plaintiff filed Original Suit No. 83 of 1970 for recovery of the aforesaid bonds and alternatively for recovery of Rs. 4,678/- as the market value of the bonds and an for amount of Rs. 1,722/- as damages.

(3.) The suit on contest was decreed by the Court of first instance vide judgment and order dated 24.9.1971 for a sum of Rs. 6,400/- with costs.