ZILA PARISHAD MUZAFFARNAGAR Vs. UDAI VEER SINGH

JUDGEMENT

(1.) Public auction is the issue in the present appeal. The duration of the contract as a consequence of the auction is one year i.e. April 1, 1988 to March 31, 1989. The subject-matter of the auction is the right to ferry or load or unload animals at the cattle fair for a monetary consideration. The auction was conducted by a corporate body the Zila Parishad, district Muzaffarnagar, constituted under the Uttar Pradesh Zila Parishad and Kshetra Samiti Adhiniyam, 1959. The auction was closed upon the highest bid having been received. The Zila Parishad attempted to auction the subject-matter of the auction to yet another candidate outside the auction, subsequently. This led to the person who had offered the highest bid upon which auction was closed to seek an injunction to protect the right to carry on his trade by the trial Court. The Zila Parishad chose to file the present first appeal from order questioning its own auction. The consideration whether injunction has been granted appropriately or inappropriately will inevitably affect the first appeal from order and the suit itself in which the injunction has been sought. The nature of the rights and obligations of the parties are in reference to the current financial year. Thus, this Court heard the matter to decide the appeal itself instead of the question of an interim order.

(2.) Now the facts : A cattle fair is held at Banat district Muzaffarnagar, The fair is known as Pashu Panth Banat. It is held every Thursday of the week within the limits of the Zila Parishad, Muzaffarnagar. There is a flourishing trade at the cattle fair and the cattle sold and purchased is visited with a fee to be paid to the Zila Parishad for loading and unloading animals at the cattle fair. The right to collect fee is given to the highest bidder at a public auction held by the Zila Parishad, Muzaffarnagar. For the period of April 1, 1988 to March 31, 1989 the Zila Parishad, Muzaffarnagar announced by advertisement in the newspapers a public auction scheduled for March 17, 1988 to confer the right to collect a fee for loading and unloading animals at the cattle fair to the highest bidder. The advertisement in the newspapers is Annexure 11-D to the affidavit supporting the stay application referred to hereinafter as the affidavit. This advertisement carrying an invitation to make a bid also set conditions should the invitation be acted upon by prospective bidders. The first condition was that bidding would be permitted only if a sum of Rs. 50,000/- has been deposited with the Zila Parishad. The second condition laid down was that the highest bidder would have to deposit Rs. 2,00,000/- or 25% of the bid whichever is the highest immediately after the auction. The third condition was that should the second condition not be complied with then the security of Rs. 50,000/- would be forfeited and the next highest bid can be acted upon. The last condition was that the balance amount of the bid is to be deposited within three days of its acceptance. The auction as scheduled was carried out. The highest bid was of the plaintiff-respondent Udai Vir Singh at Rs. 4,75,000/-, implying that the auction closed at this highest bid. It may be mentioned here that it is a matter of record that the bid in the previous year in reference to the same cattle fair was Rs. 4,31,000/-. The bid at the auction for the period 1988 to 1989 thus exceeded by Rs. 44,000/-.

(3.) Before the Court examines other matters the mechanics of the auction thus far for the plaintiff-respondent were : (a) Prior to making a bid he deposited Rs. 50,000/- with the Zila Parishad, (b) upon his highest bid closing the auction, he was required to deposit a sum of Rs. 2,00,000/- after the auction i.e. on March 17, 1988. This is evidenced by a receipt of the same day bearing No. 65/03363 for Rs. 2,00,000/-. The balance amount of Rs. 2,75,000/- was deposited at the District Co-operative Bank, Muzaffarnagar main branch on March 23, 1988 on the indent of the Zila Parishad. The plaintiff-respondent had parted with the entire money in pursuance of which the auction of his highest bid had been closed.