JUDGMENT

Bhan, J.-This appeal is directed against the final judgment and order dated 24.4.2002 passed by the High Court of Judicature of Bombay, Bench at Aurangabad in Writ Petition No. 5219 of 2001. By the impugned order the High Court has dismissed the writ petition filed by the appellant.

2. Appellant is an Associate registered under the Indian Partnership Act for the purpose of carrying on the business of purchase and sale of agricultural land, to develop the lands and construct buildings by taking contracts under Government and of private parties. It also deals as commission agent in real estates.

3. Land admeasuring 48 acres 24 gunthas of Survey No. 55 was granted by the Revenue and Forest Department of the State Government to Aurangabad Zilla Sahakari Soot Ginni Ltd. ( Mill for short) on conditions inter alia that the mill shall not transfer the said land without prior permission of the Government and that the land and buildings thereon would be liable to be resumed in case of breach of any conditions. Some of the relevant terms and conditions of the grant were as under:

"v) That, the Sut Girni shall not transfer its rights in the land to anybody by sale lease, mortgage etc. without prior permission of Government. Further, the land shall not be transferred by the Sut Girni to a foreigner except a foreigner domiciled in India, or a foreign firm established or trading in India, without the consent of Government which will have full discretion to refuse without assigning any reasons.

vi) That the land and the Sut Girni buildings to be constructed thereon shall be used for the purpose for which the grant is made and for no other purpose.

vii) That the Sut Girni buildings to be constructed shall comply with the provisions of Ribbon Development Rules in force.

viii) That the land and the building thereon shall be liable to be resumed to Government without payment of compensation for breach of any of the conditions."

4. In course of time, buildings were erected on 5 acres of land out of 48 acres and 24 gunthas and the mill started conducting its business. Out of the aforesaid land of 48 acres and 24 gunthas, 3 acres and 12 gunthas was withdrawn and given over to the Municipal Corporation for widening of the road. Two acres of land was withdrawn by the District Collector and kept under Government account and recovered the non-agricultural land revenue by sale of the same leaving 43 acres and 12 gunthas with the mill.

5. Since the mill had violated the terms and conditions of grant in its favour, on 18.12.1997, 38 acres and 12 gunthas of land was attached and taken in possession by the Government leaving 5 acres of land on which buildings had been erected. On 22.7.1998, Co-operation & Textiles Department of the State Government proposed to sell 5 acres of land with buildings thereon.

6. The total liability had accumulated to around Rs. 14 crores and no funds were available with the Spinning Mill for clearing the said liabilities. Liquidator was appointed on the Spinning Mill under the Maharashtra Co-operative Societies Act. Spinning Mill through the Liquidator submitted a proposal to the Government through the Director of Handloom, Powerloom and Co-operative Textiles (hereinafter referred to as the respondent No.2 ) for allowing the Spinning Mill to dispose of its building, plant, machinery and land. After obtaining permission from respondent No.2, the Liquidator by publication dated 8.10.1998 invited tenders from the bidders for selling the property of the Spinning Mill situated in Survey No. 55 including the land. The Liquidator instead of inviting offers for 5 acres of land on which the buildings had been constructed, invited offers for sale of entire land of 43 acres 11 gunthas treating it to be the property of the mill.

7. M/s. Rajureshwar Associates - appellants herein, in response to the proclamation issued by the Liquidator, submitted the tender quoting th