TMI Blog1973 (4) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of the Coal Commissioner and even the provision of railway wagons for the purpose of transporting coal had to be done under his orders. The Coal Commissioner granted the permission. The auction notice was published in many newspapers. The appellant, who belongs to Ferozabad in Uttar Pradesh, made an offer of ₹ 20,321/9/ and paid a deposit of ₹ 4100/-. It was accepted and in due course he paid the balance also. 3. He seems to have applied for allotment of wagons for transport of coal to Ferozabad on 3-12-48, as is evident from Ext. P. 72 written by the District Transport Officer of the Bengal Nagpur Railway, Bilaspur to the Deputy Coal Commissioner. Ext. P. 27 shows that the Provincial Iron Steel Controller, United Provinces also wrote to the Deputy Commissioner (Distribution) to arrange for a suitable number of wagons for movement of coal dust from Kumhari to Ferozabad. The appellant also wrote on 4th March, 1949 to the Chief Engineer of the Bengal Nagpur Railway complaining that the Coal Commissioner had verbally refused permission to move the coal saying that it was to be locally consumed. The Chief Engineer had sent a copy of this letter to the Coal Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Deputy Chief Engineer seems to have pursued the matter further by a conversation on the telephone on 2-4-1949, as is evident from Ext. P. 22, and this letter also reiterates the earlier refusal to supply wagons until the Coal Transport Officer agreed to the same. 5. It would be apparent from a narrative of the facts so far that the appellant who had come from Ferozabad to Kumhari, which is said to be 800 miles away, to purchase this slack coal would naturally have expected to have the wagon facility provided for transporting this coal to Ferozabad. There is, of course, nothing to show that he had made it a specific condition when he bid at the auction that wagons for transport should be provided. But it is implicit in the circumstances of this case that he expected it to be provided. As he had not been told that the coal was to be consumed locally and the Coal Commissioner had permitted the sale it cannot be said to be an unreasonable expectation on his part. If we take it that he was entitled to transport it to Ferozabad the attitude of the Coal Commissioner that the coal was to be consumed locally, a condition which was not communicated to the appellant when he bid for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... coal or else to pay occupation fees. The appellant replied on 1st August, 1949 that as the Coal Commissioner had imposed a condition that the coal was to be consumed locally, the Ministry of Industry and Supply had advised him to ask for cancellation of the auction sale and to ask for refund of the money and accepting that advice he had applied for cancellation of the auction sale and refund of the money. On 19-8-1949 he again wrote another letter for refund of the money (though this letter is a little confused, the purport of it is quite clear). Even after this the Coal Commissioner continued to take the stand that no wagons could be allotted (see Ext. D. 3) but now there was no reference to the coal having to be consumed locally. Instead, it was said that the Director of Industry, C.P. Berar was requested to assist in the disposal of this coal locally. On 24th September (see Ext. P. 6) the Chief Engineer of the Bengal Nagpur Railway wrote to the Coal Commissioner to arrange for allotment of the requisite wagons for transport of the coal. A copy of this was sent to the Financial Adviser and the Chief Accounts Officer to let him know if the amount of purchase was refundable. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t possible to allot wagons and that arrangements may be made for the cancellation of the sale and refund of the amount as advised by the Ministry of Industry and Supply (see Ext. P. 9) and the Chief Engineer wrote to the appellant on 21-12-1949 more than a year after the appellant's successful bid, referring to the above letter from the Coal Commissioner, and informing the appellant that action was being taken as instructed by the Coal Commissioner, to dispose of the appellant's case promptly. After all this, on 22nd December, 1949 Secretary to the Coal Commissioner wrote to the Chief Engineer that it was then possible to allot wagons for the movement of coal provided the auction purchaser was still interested in the movement of such coal. As would be apparent from the narration of the facts so far, this offer came too late. But it is interesting to note that it is on this letter that much of the defence to the appellant's suit was relied upon. We have no hesitation in holding that by this time everybody, including the Ministry, the Railways and the Coal Commissioner had proceeded on the basis that the coal could not be removed from Kumhari and that the sale was to be c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of his claim for interest which was disallowed by the lower Court. The High Court allowed the appeal and dismissed the appellant's cross objections and this appeal has been filed by the appellant. 9. This elaborate narration would make it clear that the appellant had bid for the coal under the honest and reasonable impression that he would be allowed to transport the coal to Ferozabad, that this was thwarted by the attitude of the Coal Commissioner, that later on the parties proceeded on the basis that the auction sale was to be cancelled and the appellant refunded his money. But apparently because by that time much of the coal had been lost and the Railways would have been in difficulty to explain the loss they chose to deny the appellant's claim. We can see no justification on facts for such a denial and the defendants cannot refuse to refund the plaintiff's amount. The con- tract had become clearly frustrated We must make it clear that we are not referring to the refusal to supply wagons but the refusal of the Coal Commissioner to allow the movement of coal to Ferozabad in spite of the fact that it was not one of the conditions of the auction. The appellant is, ..... 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