ADINARAYAN NAIK Vs. STATE

JUDGEMENT

(1.) These writ applications involving common questions of facts and law have been heard together, as agreed to by the learned counsel for both the sides and would be governed by this common order.

(2.) The case of the petitioner is that being the highest bidders in respect of some lots in the auction sale conducted by the Divisional Forest Officer, Ghumsur North Division, in the district of Ganjam, in respect of forest, coupes for 1979-80, they had signed the agreements and had made necessary security deposits and complied with all the formalities and requirements as provided under the Orissa Forest Contract Rules as also Cl. X(b) of the General Conditions of Sale and had made large scale preparations to work out the forest coupes, but their bids were not ratified by the State Government unreasonably and illegally although some other bidders were given coupes for which they had given the highest bids and in violation of Cl. 26 of the Special Conditions of Sale, the State Government settled the coupes, in respect of which the petitioners had given the highest bids, for being worked out by the Orissa Forest Corporation, a Government of Orissa undertaking, although the Corporation had not deposited any earnest money and the State Government was estopped both by law and conduct from altering the decision and settling the coupes with the Corporation instead of with the petitioners. They have claimed settlement of the coupes with them.

(3.) In the counter affidavits, the opposite parties have traversed the allegations. According to them, it was open to the State Government not to ratify the bids of the petitioners and what has been done by the State Government is in consonance with the recommendations of the National Commission on Agriculture and other expert bodies to the effect that forests should be worked out either by the Department or by the departmental undertakings or by the forest labour co-operative societies to prevent smuggling and depletion of forest wealth. According to the opposite parties, the Corporation, being a wholly State owned undertaking, was not ordinarily required to participate in the auctions and the coupes had been settled with the Corporation at reasonable amounts taking into consideration the previous bids and the upset prices.