Shelat, J. - (1.) The main question arising in these appeals, by certificate obtained from the High Court of Allahabad, is whether, on the facts and circumstances of the case, a concluded contract could be said to have been arrived at between the respondent firm and the Chief Conservator of Forests, Vindhya Pradesh for and on behalf of that State.
(2.) By a notice, dated August 27, 1953, the Chief Conservator of Forests invited tenders for the purchase of certain lac and lac products, the quantities whereof were set out therein. The conditions of sale, subject to which the said tenders were to be made, were as follows: " ********** 5. 25 per cent of the purchase price shall be deposited in cash or G. C. notes immediately after the close of sale.- 6. The sanction of the Government of final bids will be given at the spot. 7. All lac purchased must be removed within one month and on full payment; credit will be given on 25 per cent deposit. The lac will remain at the godowns at the risk of the purchasers after the sales are finished. 8. In case of default of payment of balance within one month the 25 per cent deposit shall be forfeited and the Government may resell lac in which case loss not recovered by the deposit will be recovered from defaulters............" These conditions were announced at the time of the sale.
(3.) The respondent-firm submitted tenders for two areas, for Rs. 3,80,000 relating to Umaria Division and Rs. 7000/- for Chhatarpur Division. These tenders, being the highest, were accepted for and on behalf of the Chief Conservator of Forests. Though the respondent-firm had to deposit 25 per cent of the aforesaid two amounts, it deposited two sums only, namely, Rs. 7000/- and Rs. 500/- and asked for a week's time to pay the balance of the said 25 per cent initial deposit.;