(1.) THIS appeal preferred by the State Government is directed against the judgment and decree of the Additional District Judge, Kanker, dated 16-6-1967 whereby the learned Judge has granted to the plaintiff a decree for:-- (i) a declaration that the State Government was in breach of the forest contract granted to him by ordering a stoppage of working and, therefore, not entitled to recover Rs. 35,625/- towards the balance of the auction price; (ii) a permanent injunction restraining the State Government from recovering that amount as arrears of land revenue or otherwise, and (iii) refund of Rs. 4,750/- representing the security deposit.
(2.) FACTS leading to the appeal may be shortly stated. On 17-8-1962, the plaintiff purchased the right to fell and extract bamboos from Coupe No. 'a' Walhar O/b. F. S. Kanker Division, at a public auction held by the Divisional Forest Officer, kanker, for Rs. 47,500/ -. The purchase price was payable in 4 instalments. Rs. 11,875/-were payable at once and were so paid. The other instalments-2nd of Rs. 11,875/-, 3rd and 4th of Rs. 11,875/- each were due on 1-11-1962, 1-2-1963 and 1-4-1963. Admittedly, beyond paying the 1st instalment, the plaintiff paid no other instalments, despite repeated notices.
(3.) HAVING paid the first instalment, furnished the requisite coupe boundary certificate and having executed the contract deed, the plaintiff obtained possession of the contract area. The usual contract in writing. Ex. D-3, embodying the terms was executed between the parties. The contract provided, by Clause (1), for sale of the forest produce described Sn the First Schedule, i. e. bamboos, on the conditions set forth therein. By Clause 2, the period of contract was to expire on 30-6-1963. Clause 4 provided for payment of the consideration in four instalments on the specified dates. By Clause 6, the contract was made subject to the Forest contract Rules which were to be deemed to be part of the contract.