DURGA SAW MILL Vs. STATE OF ORISSA

JUDGEMENT

(1.) A registered firm by the name and style of Sri Durga Saw Mill owns a saw-mill and carries on the business of a forest contractor. In the Orissa Gazette of 6th of September, 1974, the opposite parties published a sale notice for the purpose of leasing of certain forest coupes within the Baripada Division for the year 1974-75. On the 27th of September, 1974, auctions were held; petitioner participated in the auctions and came out as the highest bidder in respect of kuldiha Coupe No. II, Lot No. I in the Divisional Lot No. 61 of 1974-75 for a sum of Rs. 1,80,000/-. Petitioner paid security deposit of Rs. 18,000/-. The bid money being more than rupees one lakh, ratification had to be made by the State Government in the appropriate Department. As per the sale notice, the contract period for the Divisional Lot was eleven working months and was terminable on the last day of the last working month. According to the petitioner, ratification usually takes a period of about three weeks to a month and petitioner expected that the contract would be finalised by ratification by the competent authority by end of October, 1974, at the latest, so that the coupe could be worked out without delay as by then the rainy season would be over. As no confirmation came until the end of December, 1974, petitioner along with some other contractors applied to the Divisional Forest Officer who had held the auction to refund the security deposit and treat the offer as withdrawn. As no steps were taken on the application on 15th of February, 1975, petitioner along with some others applied to the State Government to the same effect and forwarded a copy thereof to the Divisional Forest Officer. When no action was taken on the several representations, petitioner filed this application on 12th of March 1975, asking for a direction of refund of the security deposit and for an order prohibiting the opposite parties from proceeding to accept the offer. On 7th of April, 1975, the counsel on behalf of the opposite parties wanted time to obtain instructions. On the 21st of April, 1975, the matter was again adjourned at the instance of the opposite parties. On 23-4-1975, in presence of counsel for both parties, the Court issued a rule nisi. Notices were actually issued in the second week of May, 1975. The Divisional Forest Officer, Baripada Division, by letter dated 17th of June, 1975 (Annexure-2) informed the petitioner that Government had accepted the petitioner's highest bid and communicated that the period of contract would be from 17th June, 1975 till 30th of November, 1976 and the bid money would be payable in four instalments as indicated in that letter. Petitioner amended the writ application and asked for quashing of the order of ratification.

(2.) On behalf of the opposite parties, a common counter affidavit has been filed by the Deputy Secretary to Government in the appropriate Department. None of the material facts pleaded by the petitioner has been disputed. In paragraph 11, it has been stated that there have been several instances where four to six months of time for ratification has been taken. Petitioner's allegation that the delay was on account of continued negotiations with the Orissa Forest Corporation has been denied and it has been stated that Government were considering the liability of paying sales-tax on the contracts and taking a final decision with reference to sales-tax liability, took time.

(3.) On the pleadings, the following questions arise for determination: