TARUN CHATTERJEE, J. - (1.) :-
(2.) THIS appeal has been filed on behalf of the Food Corporation of India (hereinafter referred to as "the Corporation") against the judgment of a learned Judge of this Court refusing to set aside an award dated 3/01/1986 in favour of the respondent, directing payment of Rs. 1,78,961.56 with interest at the rate of 16% per annum from 16/03/1981 to the date of the payment thereof or the date of the decree, whichever was earlier. The Corporation by a public notice dated 25/04/1980 notified that a public auction for sale of damaged food grains declared unfit for human consumption shall be held in the office of the regional Manager of the Corporation on 15th, 16th and 17/05/1980. It was also notified that intending purchasers might obtain detailed terms and conditions of the sale from the office of the District Manager of the Corporation at Burdwan and Deputy Manager (QC) Office at Calcutta.
(3.) AT the public auction held on 16/05/1980 the respondent was the highest bidder for uncategorised damaged wheat stock weighing 7331 quintals 85 K.Gs. at Sector 3 for which he deposited Rs. 47,660.00 being 25% of the total cost of the total stocks at Rs. 26.00 per quintal as earnest money. The Corporation issued a release order for 2000 quintals on 5/06/1990, the cost being Rs. 52,000.00 which was partly deposited and partly adjusted from the earnest money. The respondent was also the highest bidder in respect of Sector 6 for the uncategorised damaged wheat weighing 27020.63 quintals. The respondent deposited Rs. 1,39,895/being 25% of the total cost at the rate of Rs. 19.40 per quintal as earnest money. On 11/06/1980 the Corporation issued a release order for 1000 quintals, after deposit of a Bank Draft for Rs. 15,550.00 and adjustment of Rs. 4,864.35 from the earnest money above. It is an admitted position that the respondent lifted the stock of 2000 and 1000 quintals only under the aforesaid two release orders dated 5/06/1980 and 1 1/06/1980 respectively. Since the respondent failed and neglected to lift the balance stock and to pay the balance price for the same, the Corporation by two Notices dated 16/03/1981 forfeited the earnest money deposited by the respondent purporting to be in accordance with the terms and conditions for sale of the food grains in question.;