- (1.) These are cross appeals against the judgment and order of a Division Bench of the High Court of Himachal Pradesh.
(2.) M. Rishi Pal and Co., the Contractor, made a bid for the auction of a liquid vend, being the Rampur Bushair unit, for the year 1994-95. The auction was held on 16th March, 1994. The Contractor's was the highest bid. He deposited 5 per cent thereof immediately and another 8.5 per cent within the stipulated 10 days. On 28th March, 1995 his bid was rejected.
(3.) At the same auction held on 16th March, 1994 no bid was received for the Shimla-1 and Shimla-II unit. The Deputy Commissioner wrote on 20th March, 1994 to the Excise and Taxation Commissioner that after the auction of the Rampur Bushair unit, the bidders had got together and had not made any bid for the auction of the Shimla-I and II units, even though these units had been clubbed together. What transpired on 16th March is also evident from the report of the auctions held on that date. The report speaks of the aforesaid pooling and states that no bids were offered; it recommended that "it is extremely essential to pass appropriate orders so that revenue could be kept secured . . . . . . . In this context holding negotiations appears to be a suitable alternative." The suggestion was accepted and invitations were sent to those who had participated in the aforesaid auction to participate in negotiations for the allotment of the Shimla-I and II unit. These negotiations took place on 25th March, 1994. It appears from the affidavit that was filed by the State before the High Court that an offer was made by one of the negotiating parties in the sum of Rs. 8.50 crores for the Shimla-I and II unit provided the Rampur Bushair unit was also tagged on. This was found attractive and the negotiations were adjourned to 3.30 p.m. At that time the parties were told that the Financial Commissioner had decided that the negotiations should be held for the combined Shimla I and II and Rampur Bushair units and that the parties should make offers accordingly. Three of these parties, including the Contractor, requested for half an hour's time to formulate their response. After this lapse of time these parties, including the Contractor, participated in the negotiations and made offers. The offer of Rs. 8.55 crores given by one of the parties (respondent No. 6) was found to be the highest and was recommended for acceptance, which the Financial Commissioner thereafter gave. Accordingly, the Contractor was informed on 28th March, 1994 that his bid for the Rampur Bushair unit had not been approved and that a refund of the amount deposited by him would be made.;