( 1 ) THIS is an appeal under the Letters Patent against the judgment of Krishnarao, J. in S. A. No. 158 of 1959 by which he reversed the decree of the lower appellate Court and dismissed the suit. The plaintiff - the Village Panchayat of Jangareddigudem represented by its President - is the appellant.

( 2 ) THE suit was instituted to recover Rs. 3,683-2-0 with subsequent interest thereon, as the amount payable by the respondent herein under the auction held by the appellant on 10-3-1951 of the right to collect fees in weekly and daily markets and the cart stands of Jangareddigudem Panchayat Board for the year 1951-5 2.

( 3 ) THE relevant facts are these : The respondent was he highest bidder at the auction of the right to collect fees in weekly and daily markets and the cart stands in the Jangareddigudem Panchayat Board for the year 1951-52. The auction was held by the President of the said Panchayat Board on 10-3-1951 and knocked down in favour of the respondent for Rs. 4,150. 00. The auction sale was confirmed by the Panchayat Board by its resolution dated 21-3-1951.

( 4 ) UNDER the terms of the auction sale the highest bidder, who is the lessee, shall, within a w