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1979 (12) TMI 148 - SC - Central ExciseWhether the respondent is not liable to pay the damage even though no contract in writing had been executed in accordance with Article A 299 of the Constitution? Held that:- The respondent by his own conduct in not depositing the 1/6th of the bids offered by him made it impassible, for the excise authorities to conclude the contract. As the respondent did not comply with the demand, the excise authority concerned decided to conduct a resale of the excise privileges on March 21, 1951, and also to prosecute the respondent for an offence punishable under section 185 of the Indian Penal Code. Thereafter the respondent gave a representation (Exh. 7) on March 30, 1951 stating that I any action other than prosecuting him may be taken. He stated in that representation that his sole object in offering the bids was to help the Government and to help himself but when he calculated whether he would make any profit he felt that he would not do so. According to the said representation, that was the reason for not depositing 1/6th of the bid amount at the fall of the hammer. He, however, did not question the authority of the excise authorities to put up the excise privileges for resale and to claim the loss occasioned by such resale from him. In these circumstances I am of the view that it is not possible to hold that the respondent was not in law liable for the claim made by the State Government even though no contracts were formally entered into between the respondent and the State Government. The liability of the respondent in the instant case arises under the statute and it also arises as the result of a civil wrong or a tort committed by him, in offering the highest bid with open eyes and in not fulfilling the obligations arising therefrom. Thus the respondent should be made liable for the sum claimed in the suit and the decree made by the trial court should be restored.
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