JUDGMENT

CHINNAPPA REDDY, J. :— The Uttar Pradesh legislature enacted the Uttar Pradesh Forest Corporation Act, 1974 to provide for the establishment of a Corporation for the better preservation, supervision and development of forest and the better exploitation of forest produce within the State of Uttar Pradesh. The Chairman and all other members of the Corporation were to be appointed by the State Government. The State Government was to make subversions and to advance loans to the Corporation from time to time. The Corporation was required to perform the functions prescribed by the Act subject to any general or special directions that might be given by the State Government. One of the functions of the Corporation, expressly stipulated by the Act, was "to undertake removal and disposal of trees and exploitation of forest resources entrusted to it by the State Government." Another function was to manage, maintain and develop such forests as are transferred or entrusted to it by the State Government. Obviously, the contract system, that is, the system of selling by public auction the right to fell trees and exploit forest produce in specified forest areas (described in their parlanc