TMI Blog1972 (2) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... Divisional Forest Officer on August 7, 1970. Five persons including the appellant participated in the auction. Though the reserve price fixed in the tender notice was ₹ 95,000/-, the appellant's bid of ₹ 92,001/-, being the highest, was accepted by the Divisional Forest Officer. The petitioner thereafter deposited the security amount of ₹ 23,800/- and executed an agreement. The Divisional Forest officer reported about the auction We servator of Forests, Hazaribagh Circle, by his letter dated August 25, 1970. As the price for which the coup was provisionally, settled exceeded ₹ 50,0001-, the Conservator of Forests forwarded the papers regarding the auction sale to the Deputy Secretary to Government of Bihar, Forest Department, for coation of the acceptance by the Government. Since the provisional settlement was made for an amount less than the reserve price, the matter was also referred to the Finance Department. The Finance Department invited comments from the Divisional Forest Officer as to why the settlement was made for a lesser amount. The Divisional Forest Officer, by his letter dated October 30, 1 970. submitted his explanation for the provisional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eement. The contention of the appellant in the writ petition was that there was a concluded contract when the bid of the appellant was accepted by the Divisional Forest Officer though that was subject to confirmation by the Government and that, when the Government confirmed the acceptance by its proceedings, dated November 27, 1970, it was no longer within the power of Government to make the settlement of the coup upon the 6th Respondent by its proceedings dated December 13, 1970. It was also contended in the alternative that the settlement of the coup in favour of. the 6th Respondent was in violation of statutory rules and, therefore, in any event, that settlement was invalid. As already indicated, the High Court negatived these conten- tions and upheld the validity of the settlement in favour of the 6th Respondent. The special conditions in the tender notice makes it clear that the Divisional Forest Officer has the right to, accept a bid of less than ₹ 5,0001-, that acceptance of a bid of more than ₹ 5,0001- by him is subject to confirmation by- the Chief Conservator of Forests and the Forest Department of the Bihar Goverment, that an auction sale for an amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be taken here between (1) a so-called acceptance by which the acceptor agrees to become immediately bound on a condition not named in the offer, and (2) an acceptance which adopts unequivocally the terms of the offer but states that it will not be effective until a certain contingency happens or fails to happen. In the first case there is a counteroffer and rejection of the original offer; in the second case there is no counter-officer, since there is no assent to enter into an immediate bargain. There is, so to speak, an acceptance in escrow, which is not to take effect until the future. In the meantime, of course, neither party is bound and either may withdraw' More over, if the time at which the acceptance was to become effectual is unreasonably remote, the offer may lapse before the acceptance becomes effective. But if neither party withdraws and the, delay is not unreasonable a contract will arise when the contingency happens or sti- pulated event occurs In this case, it is not the want of communication of the confirmation by the Government to the appellant that really stands in the way of there being a concluded contract, but rather the want of confirmation by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No department shall, without previous consultation with the Finance Department, authorise any orders (other than orders pursuant to any general or special delegation made by the Finance Department) which (a) either immediately or by their repercussion, will affect the finances of the State, or which, in particular, (i) involve any grant of land or assignment of revenue or concession, grant, lease or licence of mineral or forests, rights or a right to water power of any easement or privilege in respect of such concession. ** *** ** *** (2), Where on a proposal under this rule, prior consultation with the Finance Department is required, but on which the Finance Department might not have agreed, no further action shall be taken on any such proposal until the cabinet takes a decision to this effect. A copy of the letter from the Deputy Secretary to the Government of the Accountant General, Bihar, dated November 22, 1967 would show that some relaxation of Rule 10(1) of the rules of executive business was made by the Finance Department relating, to lease of forest Coups or forest produce of the value of more than ₹ 50,0001-. That letter reads as under : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blic auction, it can only be made subject to the conditions mentioned there. In other words, rule 10(1) as relaxed does not prohibit the grant of a lease by private treaty. The rule read in the context of its-relaxation as mentioned in the letter of the Deputy Secretary would only show that consultation with the Finance Department is not necessary for a lease, if the lease is of of the value of more than ₹ 50,000/- and is granted in pursuance of a public auction held in conformity with the conditions mentioned in the letter of the Deputy Secretary. Now the question is whether the coup in question was settled in favour of the, 6th Respondent in accordance with Rule 10(1). It is clear from the records relating to the proceedings for the grant of the lease in favour of the 6th Respondent that the Finance Department was not consulted before the Minister passed the order on December 13, 1970, to grant the lease. But counsel for the Government of Bihar and 6th Respondent contended that rule 10(1), in so far as it requires prior consultation with the Finance Department, is only directory in character and therefore, even if there was no prior consultation, the settlement was valid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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