(1.) In the election to Lok Sabha from the secunderabad Parliamentary constituency in the General Election held in 1962, seven persons filled their nominations before the returning Officer namely the Collector of Hyderabad District. Among those were Shri Konda Satyanaravana Mohiuddin. At the time of scrutiny of file nomination papers, Konda Satyanarayana Reddy raise an objection that G malla Reddy had entered into a contract with the Government appropriate Government on 1-8-1957 that the contract was really a tripartite agreement between the Government of Andhra Pradesh and the Government of India and Shri G Malla Reddy and that the contrat was subsisting with the result that Shri G Malla Reddy incurred a disqualification under Section 7 (d) of the Representation of the People Act (Central Act 43 of 1951) Malla Reddy opposed the objection. The Returning officer heard the learned counsel on both sides and passed an order dated 23-1-1962 holding as follows:
(2.) Beyond doubt or dispute, the Election Petitioner (Shri G Malla Reddy) entered into an agreement dated 1-8-1957. The original contract is Ex B 12 and its copy is Ex A 1 its relevant provisions are as follows: AGREEMENT BOND "This Agreement Made in Exercise of The Executive Powers of the States. Executive Powers of the States, this Ist Day of August 1957 BETWEEN The Governor of Andhra Pradesh, Hyderabad (hereinafter called the Government which expression shall include his successors, assignees of the one part and Shri G Malla Reddy, Prop M/ Janata Rice Mill, Chandrayan Gutta, son of Shri G. Venkat Reddy Caste Hindu, Reddy age 401 years, occupation contractor, resident at Chandrayanan Gutta Hyderabad (hereinafter called the Mill owner) which expression shall include his representatives, heirs, executors, administrators, and assignees f the other part: Whereas the Government require the rice stocks to be cleaned; and Whereas the mill owner has agreed to cleanse the rice stocks as given to him from time to time it is hereby agreed by an between the parties as follows: 1 soon after the consignment is received at either Nampally or Kachiguda Railway Station , the representative of the Civil Supplies Department in the presence of the representative of the miller will simultaneously unload the wagon and deliver after 10 per cent weightment of the consignment to the miller; but the unloading charges shall be borne by the miller according to the condition in the tender. The miller at his own cost shall load the lorries and shift the consignment to his mill, cleanse, re-bag, standardise (110 seers each bag) stitch and reshift from the mill to the Civil Supplies Godowns. 2. The shifting of entire stocks from the Railway station to the mill will have to be done under the immediate supervision of the representative of the Civil Supplies and Central Storage Department. 3. Soon after the consignment is unloaded at the mill it will be kept under the joint seal of the representatives of the Civil Supplies and Central Storage Department and the miller. 4. The miller should clean only such rice as declared fit for cleansing by the supervising official and keep any rice declared as bad separately till final orders are given for its disposal. The miller is entitled to any (No) rent for the storage of such rice declared bad for a period of one month. Thereafter he is entitled to a rent of Re. 1 per month for 100 palls. 5. The rice will be cleansed under the immediate supervision of the Civil Supplies and the Central Storage Department. 6. The cleansed rice stocks will be kept in the mill godowns under the joint seal of the Civil Supplies and Central Storage Department authorities and the miller till it is shifted to Civil Supplies Godowns. The stocks shall be considered to be under the custody of the mill owner who shall be held wholly responsible for any storage accident or damage caused to the goods so stored. 7. The mill owner shall be paid cleansing and polishing charges at the rate of 31 Naya paise (thirty one Naya paise) per maund of cleansed rice delivered by him. 8. Konda and param derived during cleansing operations will be the Government property which will be the auctioned and delivered to the purchaser from the mill only. The miller will be responsible for the safe custody of konda and param etc. till the purchaser takes delivery. In the event of the storage for over a month, the miller will be allowed rent.............. 9. The Mill-owner shall deliver the cleansed rice at the Civil Supplies Godowns, the very next day of cleansing the rice. 10. The Hammali of unloading of cleansed rice at the time of delivery by the miller at the godowns shall be borne by the department. 11. The security deposit of Rs. 1,000 shall be refundable after settlement of accounts. the mill owner must get his accounts settled within one month of completing the cleansing operation. 12. in case of contravention of any of the above mentioned conditions, the departments shall have the right to take over the rice stocks completely and entrust the work of cleansing to any other miller. The Government shall be entitled to forfeit the deposit or recover the charges or losses incurred by them in this respect from the amount of deposit or from the person and property of the mill-owner or from the both under provision of the Hyderabad Public Demands Recovery Act, 1308 Fasli (IV of 1308 Fasli) or any other law for the time being in force in that behalf. 13. In case any difference arises between the parties hereto touching these provisions, or the subject-matter thereof and whether such difference relates to the construction or interpretation of these provisions or otherwise, the parties agree to the accept the decision of the Commissioner, Civil Supplies, the Government of Andhra Pradesh, Hyderabad as final and binding. In witness whereof Sri B.P. Vithal Director Civil Supplies authorised by the Governor of the Andhra Pradesh, Hyderabad and Sri G. Malla Prop. Janata Rice Mill, the mill-owner have set their hands on (1-8-1957) herein above in the presence of the following witnesses: Witnesses: 1. Sd 2. Sd (Signature of Mill-owner) Sd (Authorised by the Governor of Andhra Pradesh) In the Election Petition the Election Petitioner contended that the contract (Ex. B. 12) was between him and the Government of Andhra Pradesh alone. That it was not with the Union Government and that the contract had ceased to subsist on the date of filing of the nomination of the Election Petitioner. He also contends that the findings of the Returning Officer that the contract was with the Union Government and was subsisting was untenable for the various reasons mentioned in the Election Petition. The Election Respondent filed a counter denying the contentions which had been put forward by the Election petitioner in t he Election Petitioner and also contending as follows:
(3.) On the pleadings, the learned Tribunal framed four issues as follows: 1. Whether on the date of the nomination there was o subsisting contract between the petitioner and the Central Government of nay words undertaken by the Central Government? 2. Did the Government of Andhra Pradesh act as agent of the Central Government to the contract of 1-8-1957. 3. Whether the subsequent conduct of the petitioner, as alleged by the respondent is enough to establish privity of contract between the Central Government and the Petitioner? 4. To what relief is the petitioner entitled?