Kapur, J. - (1.) This is an appeal by the Union of India against an appellate judgment and decree of the Senior Subordinate Judge affirming the decree of the trial Court granting a declaration and issuing an injunction against the Union of India. The plaintiff is a licensed vendor of country liquor in the Province of Delhi and in the Punjab and has been one for Several years.
(2.) By a document, Exhibit P. I, notice was given for the auction of a country liquor shop situate in Katra Barian for the year beginning from 1-4-1946, to 313- 1947. The public auction was to be held on 20-3-1946, and it was so held by the Collector. It is admitted that the conditions of auction were read out to the intending bidders at the time of the auction on 20-3-1946 and they are marked as Exhibit D. W. 1/1 and only two of the conditions are relevant to the dispute : "32. The Collector will not be bound to accept the highest bid. If in the opinion of the said officer the bid for any particular shop is excessive he will have the power to announce at that very time that if anybody exceeds the bid which is already too high, then the whole or a part of the bid shall be payable at once," "34. The person whose bid is accepted will have to deposit one-sixth of the fee or such share which the Collector will decide within seven days and if such person does not so deposit the fee, the sale in his favour will be set aside and his Rs. 25/- fee for making a bid will be forfeited and there will be a resale by auction and if there is any short-fall in the fee, the liability will be of the person who had made the bid."
(3.) A bid was made by the plaintiff Narain Singh. It is admitted that it was announced at the time that half the fee will have to be paid. The final bid of Narain Singh was raised to Rs. 3,72,000/-and under the orders of the Collector he was asked to deposit Rs. 1,86,000/-. Reference at this stage may be made to another condition of the auction that all bids were to be subject to the sanction of the Chief Commissioner of Delhi Province and he had the authority to reject any bid without giving any reasons and to convey this in any manner he liked.;