Facts
- Haridwar Singh V. Bagum Sumbrui (1973) 3 SCC 889
- Five persons including the appellant participated in the auction. Though the reserve price fixed in the tender notice was Rs. 95,000/−, the appellant‘s bid of Rs. 92,001/−, being the highest, was accepted by the Divisional Forest Officer
- The Finance Department invited comments from the Divisional Forest Officer as to why the settlement was made for a lesser amount.
- Matter was pending − Appellant filed application to settlement on the basis of highest bid of 95000/−.
- The minister of forest directed that coup may be settled with highest bidder − Appellant − but no intimation was received by divisional forest officer − he did not communicate the proceeding of the minister to the appellant
- One Md Yakub − filed a petition before Gvt offering 101125/−
As previous communication was not transferred to appellant − The previous settlement with appellant was cancelled and settled with Md yakub for 101125/−
Law Points
- The special conditions in the tender notice makes it clear that the Divisional Forest Officer has the right to accept a bid of less than Rs. 5,000/−, that acceptance of a bid of more than Rs. 5,000/− by him is subject to confirmation by the Chief Conservator of Forests and the Forest Department of the Bihar Government and that a bid made in auction and which has been provisionally accepted by the Divisional Forest Officer shall be binding on the bidder for two months from the date of auction or till the date of rejection by competent authority whichever is earlier
- Appellant −There was a concluded contract when the Government confirmed the acceptance, even though the confirmation was not communicated to the appellant.
PRINCIPLES
Judgement
- Here the acceptance made by Minister of state was of second offer of 95000/− not to original bid settlement which was 92001/−
- We are, therefore, of the opinion that there was no concluded contract between the appellant and the Government.
