ORDER

The Forest Department in the State of Kerala decided to auction the right to collect and remove the residual of the tree growth and fire wood in sub-coupe No. 9 in Coupe No. 3, Pathanamthitta Range by means of public auction and the auction was fixed on 8th February, 1979. On that day, the appellant offered a bid for a sum of Rs. 3,00,100/-. Before the bid was confirmed, it is alleged that a fire had broken out in the forest, with the result the residual tree growth and fire wood was destroyed. The appellant herein wrote a letter to the respondents demanding reduction in the money offered by him. Despite that letter, the Managing Director confirmed the bid of the appellant and called upon him to produce the stamp paper for executing the necessary agreement and further to deposit Rs. 3,00,100/- over and above the deposit already made by the appellant. Since the appellant did not deposit the money as directed by the Managing Director, the respondent re-auctioned the remaining residual tree growth and fire wood for a sum of Rs. 2,00,400/-. Since there was a shortfall of Rs. 1,21,439/- the Managing Director wrote to the appellant to deposit the said amount by way of damages. It is