SANKET TIMBER MART NAGPUR Vs. CONSERVATOR OF FOREST

JUDGEMENT

(1.) On 3rd December, 2009 this Court has issued notice for final disposal and accordingly, I have heard Shri. S. Sanyal with Shri. Uke, learned Counsel for petitioners and Shri. Patel, learned A.G.P. for respondents. Rule is therefore made returnable forthwith and Writ Petition is taken up for final hearing by consent of parties.

(2.) The contention is. property in timber destroyed in fire had not passed on to petitioners and hence recovery for its value cannot made from them by issuing R.R.C., under Section 176 of the Maharashtra Land Revenue Code.

(3.) The facts are not in dispute. The auction was conducted on 16.04.2008 and 15.05.2008. As per the terms and conditions, the petitioners participated in the auction and deposited initial amount which enabled them to participate in it. After they were declared successful purchasers, balance amount to make total deposit of 25% was also paid by them to the respondents. As per the terms and conditions the remaining 3/4th of the amount offered by them along with necessary Forest Development Tax, Sales Tax and other duties is to be paid within 60 days after the receipt of communication that their offer has been accepted. Before this could take place, fire broke out on 01.06.2008 at about 1.30 p.m. in the afternoon and the timber for which the petitioners had bidded was completely destroyed. Thereafter, respondent no.2 called upon the petitioners to make good the loss caused to the government by depositing entire balance amount of bid quoted by them vide communication dated 26.06.2008. Petitioners protested against it and submitted their reply/ representation on 13.07.2008. This representation was considered as an appeal by respondent no.1 and by placing reliance upon the government resolution dated 29.04.1986 it has been held that as per Clause No. 11 of the terms and conditions of the auction, the goods [timber] was lying in the yard of respondents at the risk of petitioners. Petitioners were therefore found liable to make good the loss to the government.